Renting your property out to short-term tenants has the potential to generate above average rental income, but only if you know how to do it right.
The key to making your short-term rental a success is to reduce your vacancy rate and keep your property rented at close to full occupancy all year around. But this simple concept has a number of seemingly large hurdles to overcome.
For example, how do you minimise vacancy rates without essentially becoming a full-time property manager – juggling Airbnb enquiries, preparing your property for tenants, and going through the whole loop again?
Most investors are not coming close to maximising their property’s rental potential, because they are only listing their property on one, maybe two booking sites. It makes sense, because managing these listings can be a lot of work, for example:
- – You have to manage your calendars to make sure you do not double-book your property
- – Adjust your prices according to each platform’s respective booking fees, and
- – Reply to each booking request on-time via each of the booking portals.
The reality is that there are hundreds of vacation rental, and short-term stay booking sites, and if you are not listing your property on a big proportion of them then you will likely see seasonal vacancy rates and a dip in your rental income.
Not convinced? Let’s take a closer look at the benefits of listing your property on multiple booking sites.
1. Get More Bookings
It’s a numbers game. By listing your property on more booking sites, you will get more visibility for your rental, and you will inevitably get more bookings.
The more bookings you get, the more income you earn.
If you restrict yourself to a select few booking platforms, you are limiting your exposure to a narrow mix of potential renters.
For example, you may just focus on the most popular vacation rental websites, thinking that this approach will get you the visibility you need. However, the downside to this approach is that the most popular sites will have dozens, if not hundreds of listings in your area. You are actively competing against these properties as you look to rent out your property.
For example, if you do a quick search for properties in Sydney using Stayz, it returns 900+ options:
Keep in mind that there are several top websites, that each have a strong market share with different parts of the rental community. Many renters will only visit one of those websites when looking for a rental property, based on their past experience, rather than shopping around.
As well, even though the lesser-known rental websites may have less traffic, they also have less competition for your listing. This means you may be able to stretch your marketing dollars substantially by listing your property on an array of smaller sites rather than just the big players.
2. Reduce Vacancy Rates
Your vacancy rate is a prime concern when you have a short-term rental property. After all, each day that your property is vacant, it is costing you money.
Consider, for example, that you still have a mortgage, utilities, insurance and more to pay on the property regardless of whether or not it is producing money. These overheads accrue daily, and you need to have a low vacancy rate for maximum profitability from your investment.
When you rely on a single short-term rental website for exposure to potential renters, there is a strong chance that your calendar will have vacancies in it. This is particularly true during the down season especially if your property is in a seasonal area.
Seeing your number of bookings will increase when you expand your marketing reach, your vacancy rate will decline as well.
3. Find the Right Tenants
If you have been renting out your property to short-term tenants for more than a few months, you will have discovered that there are good tenants, who follow through on their obligations and leave the property in the same condition they found it.
But you may also be aware that there are bad tenants that leave your property in a mess, break things, lose your keys, or do something that is a major inconvenience when you are welcoming your next guests.
Even though you likely have properly set a damage or security deposit to cover some of these expenses, the reality is that you still need time in between tenants to get your property up to scratch for the next tenants. However, your window for doing this probably only includes time to clean when doing same-day turnarounds. To complete repair work, you may have to keep the property vacant and not producing income for a few days or longer. As you can see, the wrong tenants can cost you money in more ways than one.
When you have a high vacancy rate, you may feel inclined to rent to anyone who is interested in your property. However, when you expand your marketing reach to multiple websites, you will have more interested renters to choose from. This means that you can be more discerning about who you rent to.
For example, you may increase the minimum age of renters, stop allowing pets in the property, increase the security deposit, and take other steps to deter bad renters from the property and to prevent potential financial loss. By listing on multiple sites you can hopefully do this without hurting your vacancy rate or profit.
4. Maximise Rental Income
If you are serious about the short-term rental market, your ultimate goal is to boost your rental income and subsequently your positive gains from the property. See how one property doubled its rental income in 6 months with short term stays.
Through increased exposure, you may be able to comfortably increase your nightly, weekly or monthly rate to increase cash flow. You may also decrease your vacancy rate and decrease losses related to property damage. The end result is that you can substantially maximise revenue through your increased marketing efforts.
So, which short-term booking sites should you list on?
You may be wondering which marketing websites are available for you to use. Each has a different rate for listings, so you will need to examine them closely to determine the best options for your market.
Some of the most popular options available include Airbnb, Stayz, Booking.com, HomeAway, TripAdvisor, Hotels.com, FlipKey, Misterb&b, HotelBeds, VRBO, Trivago and more.
Discover the 50+ websites that we list our properties on here at MaisonNets by downloading the PDF guide here.
As you can see, there are significant benefits that you can enjoy if you invest your time and resources into marketing your property across multiple booking sites.
With many websites to choose from, get started exploring your options today so that you can start reaping the rewards.
Or, you can hand over the reigns to MaisonNets and remove the hassle.