5 Common Vacation Rental Homeowner Mistakes (Here’s How to Avoid Them)
Common Vacation Rental Mistakes
The vacation rental industry is booming, and many homeowners in popular destinations are capitalizing on this opportunity to put their homes on short-term rental sites. But with so much competition out there hoping for a slice of the vacation rental profits, it can be difficult to stand out on sites like AirBnB and VRBO, especially if you’re doing all of the work yourself.
Today, we’ve collected a list of the most common mistakes that short-term rental owners make, along with our advice on how to avoid them. With this advice in hand, you’ll be able to book more guests and earn more from your property with only a small amount of effort.
Mistake #1: Only Listing Your Vacation Rental On One or Two Distribution Channels
When it comes to marketing and promoting short-term rentals, a key mistake that homeowners often make is not casting a wide enough net and only posting their property listing on one or two distribution channels. It’s certainly true that AirBnB and VRBO are the leaders in the vacation rental industry, but that doesn’t mean that these distribution networks are the only ones that you should focus on.
Take some time to research what other booking platforms are available and make a plan to widen your net by listing your property on as many channels as you can find. While the bulk of your bookings may come from more popular sites, taking some extra time to start maximizing your visibility could pay off for you in the long-term.
Mistake #2: Not Following Up For Reviews From Guests
Reviews are king on short-term rental sites and discounting the power of a good review can mean lost revenue for vacation rental owners. Good reviews are one of the most valuable assets you can have on sites like AirBnB–even the most risk-taking of guests are wary about reserving a space that has nothing but negative reviews. Oftentimes, homeowners are far too busy to think about requesting reviews from guests, but this simple oversight can end up costing you thousands of dollars in revenue.
In order to avoid making this mistake, have a plan in place to ask each and every guest for a review once their stay is over, whether that’s an automated email or a personalized message. While you may find that you get a few bad apples out of this process, most guests are more than willing to leave a positive review of their experience, which in turn will help you to land even more bookings for your short-term rental. For more guidance on accumulating five-star reviews to make your rental stand out, check out our blog on the subject.
Mistake #3: Setting a Price and Forgetting It
With all of the work involved in managing a vacation rental, a common mistake that we see is simply setting one standard price and forgetting it.
Even though this may be the easiest route for homeowners, having inflexible pricing could mean losing out on revenue. Should you price your rental too low, for instance, your profit potential will be substantially lower, while if your rental is priced too high, you won’t see enough bookings to earn the revenue that you may expect.
We recommend implementing a dynamic pricing strategy that takes into account factors like seasonality, supply and demand, and current market rates to make your rental stand out. Guests are often looking for the lowest-priced option that still provides the amenities they desire, and paying attention to the varying factors that go into pricing can help you to land even more bookings and ultimately, earn more revenue from your real estate investment. For more information and advice, we recommend taking a look at our blog post about common myths and misconceptions that homeowners make with regards to pricing.
Mistake #4: Not Responding Quickly To Guests
When a guest or potential guest has a question, they typically don’t want to wait days for an answer, especially if the answer will make or break their stay at your property. In most cases, rental owners who take more than a few hours to respond to potential guests may find themselves not getting the bookings they’d hoped for. And, if you’re leaving guests who are currently staying at your property in the dark for too long, you may find their disappointment reflected in a negative review after their stay is over.
This is why it’s critical the respond to all guest and potential guest inquiries as quickly as possible. Not only will this help you to land more bookings, it can also help you to get more five-star reviews from guests that are impressed with the level of personal service you’re able to provide to them.
Mistake #5: Not Putting Enough Work Into Your Photos and Listing Description
One of the most critical mistakes that vacation rental owners make is not putting the time and energy into creating a stunning listing for their properties. It’s not enough to just write a short description that covers the basics or to upload photos of the property that you took yourself—in the highly-competitive world of short-term rentals, you’ll find it’s tough to stand out without professional photos and an electrifying listing description to go along with it.
To set yourself apart from the competition, we highly recommend hiring a professional photographer to take stunning, well-lit photos of your property. If possible, it’s also a great idea to hire an experienced copywriter to create an outstanding description for your listing.
Put Your Vacation Rental Into the Hands of Local Experts
If you’re new to owning and managing your own vacation rental, you may be surprised the find that this so-called passive income stream can quickly turn into a full-time job. However, many of the common mistakes that homeowners make can be remedied with a little bit of time and elbow grease.
Property owners looking for an easier (and less time-consuming) strategy should take a look into an all-inclusive property management company like LocalVR. With our expert teams and technology on your side, you won’t have to lift a finger when it comes to distribution, pricing, and creating a listing that will impress potential guests. For more information on our property management services, be sure to take a look at our Program page to learn more.