Industry experts say that many more Americans are opting for vacation rentals instead of hotels, and this is a trend that has continued to grow over the course of the last decade. In the past ten years, annual revenues for vacation rentals have hit around $26 billion and in the next few years, is projected to continue to rise.
Vacation rentals are also much easier to manage than hotels, I’m told.
This is because these places offer the space and options to save money that hotels just do not provide, typically. This has more than a handful of property management professionals cashing in- and it’s really no wonder, given the numbers.
Handling a vacation rental is a little bit different from a multi family or even single family home. In addition to having to go through a sort of mini move in and vacating process on a more frequent basis than say one of those types of rentals- there are also many affiliate programs that one can in fact, get in on to increase the income potential and accrue a better return on investment.
One of the key facets in being able to run a vacation rental is definitely organization. If you’re back office is anything less than optimized and transparent: you’re going to lose money. Having precision accounting is going to be step one, but also, being able to maintain the communication between many more parties than a regular rental is going to be essential.
Because many people are also looking into letting out their vacation homes, considering adding them to your property management portfolio is a must. It’s an entirely different type of rental than residential- as anyone who has tried to DIY landlord one of these can tell you. People on vacation need much more personal service than your usual tenants, and depending on the season: they don’t want to be there every weekend, cleaning it, preparing for the next potential renter. Most of the time, they don’t live in the same area as the rental, either- and this becomes fairly problematic when it comes to upkeep. This is where managing vacation rentals becomes a good area for any property management company to take on- assuming they’re well organized. Imagine your single family home turning over every other week or so and go from there.