By: Daniel Sherwin

The vacation rental industry continues to grow as travelers seek home-like amenities, privacy, and space. Short-term rentals were the quickest hospitality sector to rebound after the onset of the coronavirus pandemic and business owners continue to remain optimistic through the remainder of 2021.

This, combined with rising prices and project delays in the construction sector, has led some real estate investors to turn their attention to short-term rentals instead of fixing and flipping.

However, managing vacation rentals is a much different business than fixing and flipping properties. Rental Finder offers the following guidance real estate investors need to know before diving into short-term rentals.

Remodeling to appeal to the vacation rental market

Renters want many of the same things as buyers, however, there are key differences to know when entering the short-term rental market.

Many of the same improvements that increase the value of your investment property also appeal to vacation rental customers. Think good curb appeal, modern kitchens, and accessible interiors.

Keep maintenance in mind when remodeling a vacation rental property. Low maintenance materials and fuss-free landscaping save time and money for property
owners.

Investors entering the short-term rental market should pay special attention to security. Consider passive security features like fencing and landscape lighting along with smart locks and security systems.

Building a vacation rental business

Your expertise is picking great investment properties, not marketing, customer service, or all the other jobs that go into running a vacation rental business. In order to scale beyond one or two properties, you need to hire help.

Learn how to start a business in Indiana so you’re ready to hit the ground running.

Most vacation rental owners outsource to a property management agency. Typical property management fees range from 20-40% of rental income.

Connect with an agency like Rental Finder to keep your vacation rental listed, or to convert it to a long-term rental.

Tips for short-term rental success

Success in the vacation rental business starts with a great location. However, that's not all it takes to maximize profitability in this market.

Like all businesses, vacation rental companies need effective marketing. Think beyond Airbnb and VRBO and build a brand that brings customers directly to you.

Software optimizes daily operations so you can focus on building your business, not managing it. Property management systems for vacation rentals should include channel management, listing management, and guest automation tools among others.

Don't underestimate the importance of the customer experience. Going above and beyond for guests is a small expense with major payoffs for vacation rental hosts.

Are you ready to put your short-term rental plans into action? If you want to take advantage of the growth in the vacation rental industry, why not take the leap and put an Indiana rental to work for you!