Here are some tips to help your clients (and perhaps you) recoup some of the investment costs made on vacation homes by renting them out occasionally.
Know the Rules of the Short-Term Rental Game in Your Local Market
Before you list your vacation home as a short-term rental property, do your research. Check out any ordinances and/or restrictions in your state, county, city and/or homeowners’ association that could limit any options you might have in order to list your property as a short-term rental. In fact, you may not even be allowed to rent out your vacation property at all.
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Check also with your tax attorney, accountant, and/or certified financial planner to know whether or not there are any tax implications for renting out your vacation home. The number of days your vacation home is rented may negatively impact any tax benefits and/or deductions usually associated with vacation/second homes.
You may need a permit to rent your vacation home and/or a fire inspection prior to listing your property as a short-term rental. You may also need to increase your homeowner insurance coverage to ensure that the coverage is adequate for a soon-to-be commercial property.
Put Together Your Team
James Svetec, an owner of BNB Inner Circle, a host coaching service and an author of Airbnb for Dummies, suggests that you decide right off the bat whether or not you will manage your vacation home as a short-term rental on your own or whether you will hire a professional manager.
Know from the get-go that your being the property manager means being willing and able to be on call 24/7 to respond to all inquiries and/or problems. Alex Johnson, the senior director of business operations and strategies for Vacasa, a short-term rental property manager, said, “You’ve got to make sure that you are prepared to take those calls and help those guests, especially if you are a homeowner that lives farther away…it’s amazing what is needed to really, truly support a guest.”
If deciding to manage the property yourself, carefully interview a reliable cleaning service that can turn over the property quickly. Do the same to connect with a maintenance crew that can respond to problems (roof leaks, plumbing issues, etc) rapidly. Svetec suggests investing in software to automate reservations such as Hospitable or Hostaway.
If you decide to hire a professional property manager, know that professional property managers take 20%-30% of the rent revenue. Take interviewing potential candidates seriously…look for a manager who knows the market and look for a manager who has a reliable track record.
Stage Your Property for Guests
No-brainer staging tips for your short-term rental property include:
- Stock the cabinets with dishes, glasses, pots and pans that are easy to reach.
- Have fresh towels and linens.
- Make sure your furnishings are durable and easy to clean and can increase occupancy, such as a sofa bed.
- Create a designated folder with local information about restaurants, bars, attractions, parks, hiking trails, house rules, etc. Place that folder in a spot that’s impossible to miss, such as on the dining table or in the refrigerator. Separately, include password codes, gate/front door/garage door access codes, key phone numbers/links, etc. in a distinct email to your guests just prior to their arrival.
- Create a basket of board games and place that basket on the dining table.
- Make sure the property has been deep cleaned.
- Store your personal items in a locked cabinet.
Now that you’ve properly staged you property for guests, hire a professional photographer take listing photos. Just as for-sale listings need great listing photos, short-term rentals need great listing photos. As Svetec has said, “You really want to help people envision themselves in the space.”
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Thanks to the New York Times.
