Renting for short-term occupancy spiked by 12% in the first quarter of 2023 vs. 2020.
Plus, international travel is making a comeback. It reached 80% of its pre-pandemic glory in Q1 2023 as 235 million tourists hit the road.
With such a promising surge, your short-term rental can steal the spotlight. But how will you run it effectively and maximize your short-term rental profits?
Learn more about renting short-term rental properties in this guide.
How to Rent Your Short-term Rental Properties?
In May 2022, 88,000 new short-term rentals pushed the total listings to an all-time high.
With renting for the short term on the rise, you must be accurate when identifying your target audience to ensure your property appeals to the right guests, leading to higher occupancy rates.
What’s Your Short-term Rental Type?
Different types of short-term vacation rentals cater to varied traveler preferences. For example:
- Weekend Homes
- Condos and Serviced Apartments
- Bed and Breakfasts (BnBs)
- Cabins and Cottages
- Villas and Chalets
- Extended Stay Hotels
- RV Parks
Your first decision when renting for the short term should be to define your type of short-term rental. This helps decide your investment strategy for a desired location and prepare various lease terms based on the current market rates.
Who’s Your Target Audience for Short-Term Rentals?
Your target audience defines the travelers you aim to attract when renting for short term. You must tailor your properties to their needs. Here are some steps to identify your potential customers:
- Analyze your property’s location and its appeal to different traveler segments.
- Create guest personas based on demographics, interests, needs, and feedback.
- Study the types of travelers your competitors are renting for short-term are attracting.
- Decide how to differentiate your short-term rental to appeal to those types.
How to Prepare Your Short-Term Rental Property?
Once you’ve identified your target audience, tailor your property to their expectations and needs. For example, if you’re targeting remote workers, ensure a reliable Wi-Fi connection, a comfortable workspace, and even a printer.
Moreover, offering laundry facilities, a well-equipped kitchen, and comfortable furnishings for more extended visits can be a great perk. Plus, proximity to public transportation, parking availability, or access to bike rentals could be important factors.
You should also adjust your property offerings based on guest feedback and other traveler trends when renting for short term.
Tips to Maximize Profits When Renting for Short Term
Renting for short-term has existed long before the internet. But digital acceleration has been transforming things up!
You can manage crucial aspects of renting for short term, from listing to pricing, at your fingertips.
For instance, we enable mobile sign-up to set up your account. Watch:
Whether it’s marketing, booking, or managing your vacation rental, here are some tips for managing your property and raising profits.
1. Cleaning and Maintenance
Keeping your space clean and safe for guests is a top priority. Here are some critical steps to take:
- Think about hiring professional cleaning services. They can give your property a tidy makeover for a lesser cleaning fee.
- Always remember to do routine maintenance checks. Address any issues promptly to keep your place in top shape.
- Safety first! Make sure you have essentials like smoke detectors and fire extinguishers in place.
- Double-check that all appliances are in working order. A hassle-free stay is a happy stay for your guests.
2. Property Listing and Marketing
Only 22% of vacation rentals are listed on OTAs (online travel agencies), while surveys suggest high demand and limited supply. As a result, you can enjoy high occupancy rates and increased revenue per booking.
Refrain from holding back on marketing efforts when renting for short term. Invest in high-quality photography. Write compelling property descriptions using well-researched keywords. These visual and textual elements are your property’s first impression.
Ensure your property is listed across top online travel agencies for consistent income potential.
Bonus Tip: PriceLabs’ tool STRings can help you create titles and descriptions for your short-term rental listings.
3. Guest Screening and Communication
When handling booking inquiries and reservations, promptly respond to potential guests, addressing their questions and concerns. Clear, concise communication builds trust.
Ensure your property is spotless, well-maintained, and ready to welcome guests. Provide detailed arrival instructions. A warm, informative welcome message sets the tone for a positive guest experience.
Watch Bill Faeth from Build STR Wealth talk about how to communicate with your guests:
4. Pricing Strategies
Nailing your pricing is paramount when you’re renting for short-term rental properties.
Start with setting the minimum price (your lowest booking rate), the base price (your average year-round rate), and the maximum price (your highest available rate for a stay).
Refer to our product snapshot below:
- Adjust rates based on seasons or events
- Set custom pricing and minimum stay rules for different seasons
- Utilize date-specific overrides to adjust pricing and minimum stay requirements
- Analyze your booking patterns and study market insights
Here’s how our client Achei Gramado, optimized its pricing and revenue strategies:
5. Be Aware of Legal Considerations and Regulations
Staying ahead with property laws and regulations is essential. So, reach out to the city and homeowner’s association where you’re renting for short term. As regulations for short-term rentals increase, local laws can be a maze.
Cities like New York, San Francisco, Chicago, and Dallas have already rolled out new rules, and many more are following suit. So, engage with zoning officials and connect with local leaders. This way, you can be on the right side of the law and manage your short-term rental hassle-free.
6. Guest Experience Enhancement
Adding personal touches to the amenities can create a memorable stay experience for your guests. Fresh flowers, local goodies, and/or comfy blankets can go a long way in creating a warm atmosphere.
Be quick and attentive in addressing guest requests or concerns, as it’s the key to keeping them happy.
Guests who feel valued and well-taken care of are likelier to leave positive reviews. Plus, they’re more likely to return for future stays.
7. Optimizing Occupancy Rates
Customize minimum stay restrictions for your audience, location, and events.
You can do this during low demand. But make sure to communicate this clearly on booking platforms. Consider using the PriceLabs Minstay Recommendations Engine for data-backed suggestions.
Refer to our product snapshots below:
8. Making a Sustainable Stay
In a recent survey by Booking.com, 81% expressed interest in sustainable accommodations. Hence, many might be willing to pay extra for sustainable short-term rentals.
Considering this, you may integrate green features like energy-efficient appliances, low-flow showerheads, and recycling programs into your short-term rental.
Bonus Tip: Communicate your sustainability efforts clearly to attract eco-conscious guests.
Short-Term Renting Made Easy with PriceLabs
The short-term rental market is ripe with potential. But with that comes the rising competition.
To stay ahead of the curve, use price optimization techniques to attract more customers, greater rental income, and business growth.
The PriceLabs revenue management and dynamic pricing tool for short-term rental owners can help automate your processes and maximize profits. Here’s a 30-day free trial for you to get you started!
How to run a short-term rental?
Stay updated on local regulations and list your short-term rental using quality visuals and keywords for effective marketing. Then, build trust through efficient guest communication. Maximize revenue with dynamic pricing for seasonal demand and customizing stay restrictions. Improve guest experience with cleanliness, safety, and prompt issue resolution.
What are the benefits of being a short-term rental property owner?
Being a short-term rental property owner offers the potential for increased rental income, tax benefits, property diversification, and the flexibility to use your property.
What are the challenges of being a short-term rental property owner?
A short-term rental property owner’s primary challenges are managing high turnover, navigating legal and regulatory complexities, and dealing with seasonal market fluctuations. However, tech solutions like PriceLabs and awareness of the current laws and trends about short-term rentals can rectify these challenges.