Preparing your Home to Rent on AirBNB as a Short Term Rental
Preparing your home to rent on Airbnb or VRBO as short term rental can be a daunting task, but with careful planning and attention to detail, it can be a profitable and rewarding experience. There’s nothing better than seeing huge payouts and super-satisfied guests. Here are some tips on how to get your home guest-ready for short-term rentals.
Understand the Regulations
Before you even think about listing your home on Airbnb or VRBO, it's important to familiarize yourself with the local short-term rental regulations. Depending on where your property is located, there may be specific rules and regulations you need to follow to legally rent out your home. It could be very different in the next town over
For example, some Ulster County cities and municipalities have specific permits you need to apply for before you can rent out your home. In some cases, you may need to collect hotel occupancy taxes and remit them to the appropriate authorities. You may also need to comply with specific safety regulations, such as installing smoke detectors, fire extinguishers, and emergency exit signs.
It's important to research the regulations in your area well in advance of listing your property to ensure that you are compliant with all applicable laws and regulations.
Accounting & Tax
One of the most important aspects of running a successful short-term rental business is properly accounting for your proceeds and paying any applicable taxes. Depending on where your property is located, you may be required to collect and remit hotel occupancy taxes, sales taxes, or other fees.
It's important to consult with a tax professional or accountant to ensure that you are accounting for all your proceeds properly and that you are complying with all applicable tax laws and regulations.
In addition to taxes, it's also important to ensure that your property is properly insured and isolated from liability risk. Make sure that you have adequate liability insurance in place and that your property is in compliance with all applicable safety regulations.
Choose Your Management Approach
One of the first decisions you'll need to make when preparing your home for short-term rentals is whether to manage the property yourself or hire a short-term rental property manager. There are pros and cons to both approaches, and the right choice will depend on your personal preferences and the specifics of your property.
If you choose to manage the property yourself, you'll need to be prepared to handle all aspects of the rental business, from marketing and bookings to cleaning and maintenance. This can be time-consuming and require a significant amount of effort, but it also gives you more control over the rental process and allows you to keep a larger share of the rental revenue. This is the more active approach.
Alternatively, if you choose to hire a short-term rental property manager, they will handle all aspects of the rental business for you, including marketing, bookings, cleaning, and maintenance. This can be a good option if you don't have the time or inclination to manage the property yourself, but it will come at a cost, typically a percentage of your rental revenue. This is the more passive approach.
Plan for Property Maintenance
One of the most important things you can do to ensure the success of your short-term rental business is to plan for property maintenance. Breakdowns lead to cancellations which is money coming right out of your pocket. This means making an itemized list of any deferred maintenance, cosmetic issues, or repairs that need to be done and developing a plan to address them.
It's important to invest time and money in this stage of the process, as it will pay off in the long run by ensuring that your property is in top condition and able to command higher rental rates.
Enhance the Property
In addition to addressing any maintenance or repair issues, it's also important to think creatively about how you can enhance your property to make it more appealing to renters. This might include adding amenities like hot tubs, pools, game rooms, or bistro lights, or making improvements to the property, such as landscaping or cosmetic upgrades.
It's a good idea to do these enhancements before listing your property to maximize your rental revenue and ensure that your property stands out from the competition.
Create an Enticing Listing
Once your property is guest-ready, it’s time to create a highly converting listing on all booking channels. Analyze your competitors and use their best practices to create an attractive listing. Use high-quality images that showcase the best features of your property, and use a descriptive and compelling headline and property description.
Consider including a detailed list of amenities, guest reviews, and any local attractions. These details can help guests get a better idea of what to expect during their stay and can help increase bookings.
Select and Set Up Property Management Software
Choosing the right software for your short-term rental management is critical to your success. Several property management software options are available, including Hospitable, Guesty, Hostaway, OwnerRez, and Uplisting. These tools can help you automate many of the tasks associated with managing a short-term rental property, such as guest communication, reservations, and pricing.
When selecting a property management software, it’s essential to consider your needs and budget carefully. Look for software that offers robust features that are relevant to your property management needs, such as dynamic pricing, channel management, and integration with third-party tools. It’s also important to consider the cost of the software, including any fees or commissions associated with bookings.
Create a Guest Journey and Experience
Develop an associated messaging and create a seamless guest experience from check-in to check-out. Communicate with guests before their arrival to confirm details, such as check-in time, parking, and key pickup. Provide clear instructions on how to access the property and any relevant rules or policies, such as quiet hours or pet policies.
Consider adding personal touches to enhance the guest experience, such as providing a welcome basket or personalized recommendations for local attractions and restaurants. Ensure that guests have all the information they need to make the most of their stay.
Set Up Pricing
Determining your pricing strategy is essential to ensuring optimal revenue. Factors to consider when setting your pricing include the demand for short-term rentals in your area, the time of year, and any special events or local attractions. It’s also essential to monitor your pricing regularly and adjust it based on demand, seasonality, and other factors.
Consider using dynamic pricing tools to optimize your pricing automatically based on market demand and other factors. Dynamic pricing tools can help you stay competitive and maximize revenue while minimizing the risk of overbooking or underpricing. Though all pricing tools require human direction.
Onboard Local Labor
Finding, onboarding, and training a cleaner and handyman to maintain your property's cleanliness is critical. Cleaning has the largest impact on guest satisfaction, so it’s essential to find a reliable and trustworthy cleaner to maintain your property between guest stays. Additionally, consider finding local subcontractors for plumbing, HVAC, and other essential services.
Maintain the Property
Develop maintenance, supply, and cleaner checklists and processes to keep your property in top shape. Regularly inspect your property to identify any maintenance or repair needs and schedule any necessary work promptly. Ensure that your property is always adequately stocked with essentials, such as linens, toiletries, and cleaning supplies.
Create a Guest Guidebook
Creating a guidebook for guests is a great way to provide all the necessary information about your property and its surroundings. Consider including information on nearby attractions, restaurants, and other amenities. Additionally, include details on how to use any electronic devices
Create an enticing listing
Now that your property is ready for guests, it's time to create a listing that attracts them. The key to creating an enticing listing is to analyze your competition and highlight what makes your property unique. Take high-quality photos of every room, and make sure they are well-lit and staged to show off your property's best features. Write an engaging description that includes information about the property's location, amenities, and any unique selling points, such as a stunning view or proximity to a popular attraction.
Guest Communications
Finally, it's important to be responsive to guest inquiries and messages. Guests expect quick and efficient communication, and your response time can impact your reviews and bookings. Determine who will be the point of contact for guest communications and make sure they are trained on your expectations and policies. Set up automated messaging for common questions and requests, and be sure to respond promptly to any issues or concerns guests may have.
Preparing your home for short-term rentals takes time and effort, but the rewards can be significant. By following these steps and working with a reputable short-term rental property manager, you can create a profitable and successful rental business. If you own a home in the Hudson Valley or Cape Cod and are looking for a property manager focused on driving results, schedule a no-strings-attached chat.
