Maintaining a healthy vacancy rate is the goal of every property manager and landlord. This is the sure way of boosting profits as well as ROI. But, it’s easier said than done. Most landlords and property managers try very hard to keep their short term tenants happy, but still at the time of peak season, the tenants leave them hanging. Short-term rentals suffer a lot all-around the year, because of high competition.
Did you know the only way to increase profit and ROI on your short term rental is to keep it occupied all around the year? Well, as we said earlier, it’s easier said than done. Every year you need to sit with your team and observe the hurdles that keep you from realizing your goals. At the moment, people around the globe are fighting the worst pandemic of their lives; COVID-19 has put a stop on everything. However, after three months of standing still, we are not adapting to a new way of life; hence, it’s time we buckle up and solve the problem of our increasing vacancy rate.
There is no time like now to plan ahead, here are some easy to follow tips and steps that will help you correct your vacancy rate and earn better profits.
Listing – Time to Update:
Your listing is the first impression of your short term rental property. This is the first thing that will lure your tenant in. So, ask a friend or family member to scrutinize your listing and give ideas to make it even more professional and attractive. Update your listing to make it look more appealing to your tenants, put yourself in their shoes and think what they need in a short-term rental home and are you delivering that? Does your listing answer all their questions?
You should keep your listing appealing not only for the peak season but all around the year. There are many small incentives that you can add to make your short-term rental appear more appealing to the tenants, such as offering a discount off-season, on the breakfast buffet, or treats for winter like hot chocolate or bonfires.
Adding a swell description is also a huge part of the listing. Make sure your description makes people fall in love with your rental without even seeing the pictures. For example, in winter, it should be something like a “cozy and warm retreat – rekindle the romance,” and for summer, it should be, “Double the fun of summer, splash in the pool and enjoy pool parties with free drinks on the house.”
Apart from your description, you need to add the best photos of your rental if you are really looking to improve your vacancy rate. Make sure all the pictures you add are recent, as well as highly professional. Capture all the best aspects of your rental vacation home both inside and outside. If you aren’t good with pictures, hire a professional to do the job. Treat this expense as an investment.
Communication – Time To Become Customer Oriented:
You can’t keep your customers hanging and waiting for a response. If you don’t answer back in a timely fashion, you will keep losing tenants. One time and detailed replies can win you, clients, better easier than you can imagine. Enthusiasm, as well as professionalism, is what make people book rentals fast.
No one likes to wait and deal with a rude property manager, so make sure you polish up your customer representative and communication skills. However, if you think your work is done as soon as the booking is confirmed, you are mistaken. The client will now have a million questions about travel details, landmarks or restaurants, and other entertainment forums around the rental. A polite and informative reply to all these will lead to a positive review on your listing.
Reviews – Time For Some Management:
When it comes to vacation rentals, reviews are everything. When you keep your guests happy, they are always willing to spread a good word about you in their friends and family, but you need more than that. Encourage them to leave a positive review where it matters the most. Clean, welcoming, just as the pictures, you need all these praises in the review, so make sure you work hard for it. Just as happy customers leave good reviews, the unhappy ones also leave a negative review. Don’t give your guests the chance to leave a bad review.
Pricing Strategy – Time to Calculate:
Pricing is the factor that affects the vacancy rate the most, so make sure you have given your pricing strategy enough thought and consideration. Your price should cover all your costs and leave enough behind for a good profit. Another good strategy is to check out the competition in your area. Your pricing should be competitive, and it should also offer excellent value for money to the customers.
Another point is to adjust your pricing according to seasons. Seasons like summer holidays and Christmas are the times when you can increase your pricing as per the competition around your area. The fluctuation in demand is expected when you invest in a short term rental property.
Marketing And Promotion –Time To Rethink The Strategy:
There is always room for improvement. If you offer short term rentals, you should also consider providing long-term contracts to your guest. Introduce discounts and deals to long term contracts so that your property stays occupied when the peak seasons end.
Apart from promotions, you will need to work on your marketing strategies as well. Positive word of mouth is one thing, but you should take advantage of free social media marketing as well. Join groups related to vacation rentals and keep uploading your listing with reviews, customer testimonials, deals, and offers as well as professional pictures.
Conclusion:
To give your rental property the right push towards hefty profit and increased return on investment, you will need to work on the vacancy rate. The above-mentioned strategies are the best way to go if you are looking for the right steps to follow to improve your vacancy rate.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
