“Having goals is great and all, but as a general rule of thumb, you need some sort of income to finance them. Whether it’s buying the car you’ve always wanted (and paying off a car loan) or learning a new skill (and taking classes to perfect it), the process of achieving your goals often involves a little bit of extra financial outlay.
So how do you get your hands on a passive income that you can use to fund your goals and give you more financial freedom? Well, you could sell random things online. You could start (another) side hustle. Or, if you own an investment property (and if you’re reading this, we’re guessing you probably do), you could rent it out.
Even if you do not have prior experience in renting out a property, it’s surprisingly easy to become a major player in the short-term rental market. The main thing to remember is to pay attention to how you are maintaining and managing your property so that you are constantly maximising your returns from it.
After all, when you rent out your property, you want to earn more than what will simply cover your mortgage. You want to earn that little bit extra that will be the icing on the cake when it comes to having financial freedom.
In this post, we’ll provide a step-by-step guide to renting out your investment property and (this is the best part) making money from it. The short-term rental market is an incredibly lucrative way to obtain wealth through property, and provided you understand a few key basics, it definitely doesn’t belong in the ‘too difficult’ basket.
Let’s go back to basics here. A short-term rental comprises a furnished home or apartment for people who are looking for a place where they can stay for a short period of time. Typically, people rent places out on a nightly, weekend or weekly basis.
To ensure your rental will be both profitable and popular, familiarise yourself with the market and inspect other rentals in your neighbourhood. Make sure you look at rates, conditions and any extras on offer. Do this online – although if you want to be super diligent, you can also call a local property manager to get more information.
Your listing should be a fun, an engaging read, with headlines that persuade a potential tenant that they will have a good time staying at your property. Try to appeal to the imagination of the reader and aim to make your listing stand out. You want people browsing online to be curious enough to click through to your advert and send you a direct message enquiring about rates.
While listing your property on multiple sites can be time-consuming and require a lot of effort on your part, it’s important. Many people skip this part and just list their rental on one or two sites, which is actually a huge mistake.
You want to make sure many potential renters can see your short-term rental property, so you should not just list it on popular sites such as Airbnb, HomeAway, and VRBO. You should also put up your listing on sites like Stayz, CampInMyGarden, CouchSurfing, and FlipKey to get more bookings and find good tenants. Here are more reasons why you should list on multiple sites.
It may feel costly at first to renovate your place and furnish it for guests, but it will pay off in the long run. You want to make sure your guests have a fantastic stay and will leave a positive review for your rental.
It makes sense to make them feel at home the moment they step in. Talk to them before they even stay at your property and make sure you greet them upon their arrival. Before you know it you’ll become known as a super host!
What your guests say and think about their stay at your short-term rental matters, and can seriously influence the decisions of future tenants. You need to garner as many positive reviews and glowing recommendations as possible in order to stay competitive, regardless if your property is in a main city such as Sydney or Melbourne, or in a more regional part of the state.
The first step is to manage your guests’ expectations right from the very start. Be honest with your description in your listings and treat people like you value them – you do, even if it’s only because they’re bringing you value!
Remember that one of the most important truths for beginners in the short-term rental market is that your first guest is never your last. When you get something right and gain positive feedback, rinse and repeat. Over time, you will develop a successful and highly-structured method of earning money out of your investment property.
While a short-term rental may seem like it is more complicated than other traditional types of renting, it is a way to profit from property without veering towards long-term commitments. The strength of using your investment property as a short-term rental property is that you really can make significant gains – plus it shows higher and more consistent capital growth in the longer term.”
“It goes without saying that every property owner wants to have repeat business for their short-term rental.
Why? Well, it’s obvious when you think about it. Repeat business means less work attracting and assessing potential tenants, less time spent on administrative correspondence, and less vacancies at your property throughout the year.
So how do you go about improving the re-booking rate of your short-term rental? What can you do to get satisfied customers to return while also increasing the market value of your property?
The good news is there are three easy ways you can help generate repeat bookings, to not only boost your income, but also drive personal recommendations for your rental. As a host, you have the ability to stand out from your competition simply by providing irresistible incentives and returning a little love to your guests.
Let’s take a look…
There’s always bound to be competition when you list your short-term rental on property booking sites – so list it as attractively as possible. Also, list it on as many sites as you can, even the less popular ones. What you are doing here is maximising your odds of finding new tenants and standing out from the crowd.
The first thing that you’ll need is a great headline and cover photo. When renters are scrolling through their list of search results, those are the first two things that they’ll see. Your photo should be a professionally-styled shot that looks inviting enough to make people click on your listing. Your header should be short, concise, catchy and intriguing. It shouldn’t give everything away upfront – just enough to arouse curiosity and reflect the unique experience that you have to offer.
When it comes to getting repeat bookings, the main benefit of creating a distinctive listing or paying for a professional photo shoot is that it becomes easy for existing tenants to find you again. Also, when they recommend your place to friends, family or colleagues, they have a great-looking link to back up the praises they’re singing.
While your listing should never change at its core, don’t be afraid to add thoughtful seasonal extras such as a romantic fireside wine hamper in the depths of winter, or free vouchers to neighbourhood yoga classes in spring. During the festive season, change your main photo to one that shows a Christmas tree in focus, or offer a fully-decorated ‘Santa’ room for a special price. People are more likely to return if they think they’re getting a familiar but uniquely customised experience every time.
By getting the word out there on social media channels or through email newsletters, as well as posting about your property’s availability on multiple sites, you’re bound to reach a much wider audience than if you just concentrate on a few popular sites.
Your marketing strategy should have a two-fold approach: you want to appeal to new tenants and also create a lasting relationship with existing tenants. What most people, regardless of their walk of life, are looking for when they search for a short-term rental is that elusive ‘home away from home’ feeling. The main reason they return to a short-term rental again and again is because it delivers on this count.
As a host, you can befriend your potential and existing guests in one easy move simply by providing warm, engaging updates as part of your marketing strategy. Create a monthly email newsletter which past and potential guests can sign up to for to receive news about local events, rental discounts and residential developments. This will make them feel like they have a figurative stake in your property’s affairs, plus former guests will love seeing the property through changing seasons. Familiarity breeds nostalgia, and by posting about local and lesser-known events, you will also promote the sense of exclusivity that comes with your rental experience.
Social media can also help you cultivate lasting relationships with guests as well as provide a space for them to post about their positive experiences. It’s a great platform for you to get to know your guests before, during and after their stay, and to give them an idea of what you’re like as a host. A well-maintained fan page or account will help you stay in the forefront of a guest’s mind every time they’re planning a trip away.
A great tactic for getting return bookings at your rental property is to offer some compelling incentives. Take a careful look at your competition – what are similar properties priced at? Consider offering special discounts and other incentives for return guests to show how happy you are to see them again.
You could go for a 10% or 15% discount on bookings for repeat visitors, or show you appreciate them with other rewards such as a complimentary wine hamper on their third stay or a free breakfast service every morning when they stay with you a second time.
These sort of gestures go a long way in people’s minds and give you a distinct edge over the competition. Think about how much more likely coffee drinkers are to return to a particular cafe if they have a coffee coupon card that entitles them to a free beverage every fifth order. Providing special incentives to return guests operates on exactly the same principle.
People like to be treated like royalty, and love to be treated to special extra touches or complimentary services. Advertise that you go the extra mile for your returning guests and make sure you actually do so – this is how you win loyalty and keep your property booked out all year round.
If you’re worried about losing money through offering discounts, know that it pays dividends in positive reviews. People will be much more likely to take a punt on your place if reviews that previous guests have written are glowing and abundant. Ask your repeat guests to reward you in return by writing you a review or recommendation – chances are they’ll feel flattered and happily do so. The majority of consumers today rely on online reviews when it comes to places to stay, places to eat, places to visit and places to shop, so having positive reviews about your rental from repeat guests is extraordinarily valuable for future business.
Using the above tips, you’ll be able to improve the re-booking rate of your property with ease. As a host, standing out from the crowd just takes a little extra care and consideration, and a willingness to return the love down the line. In return, you’ll enjoy a steady income and the warm sense of satisfaction that comes with a successful short-term rental.”
“Keeping your property rented during off-peak seasons, such as the cold Australian winter, can be difficult and at times stressful. Especially if you financially rely on rental income throughout the year.
So how can you maintain a steadily rented property, even at off-peak times?
Here are four strategies you can use to keep your property booked in off-peak periods with short-term guests.
If you list your property on multiple sites, you’ll inevitably create more visibility for it. You’ll reach a wider audience, and increase the chance of bookings.
When you limit your listing to just a few popular vacation websites, not only are you limiting your audience of potential renters, but you’re also entering yourself into fierce competition with multiple other property owners or managers. Everyone’s using the popular sites, and you’ll find yourself up against hundreds of other properties in your area.
Instead, try to list your property on less-known sites. While these listing sources may have less traffic, they’ll also have less competition, increasing your chance of finding a successful short-term renter, as well as one that is reliable and has a good reputation.
Relying on just a few sites means you may experience an increase in vacancies. During these lulls, you still have to pay for all your property’s expenses even if it’s not occupied, which costs you more money over time.
Widening your reach by posting on multiple short-term rental sites means you’ll have more interested renters to choose from, and you can be more selective about the process.
The MaisonNets service automatically lists your property on over 50 different booking sites. We’ve found this approach to significantly decrease vacancy rates, and over time significantly increase rental income for property owners.
While summer is a much more popular time for renting properties for vacation, you can also market your rental property as a cozy getaway during the off-peak winter months as well.
When selecting a theme, you may want to decorate or furnish the interior of your property based on the season. Tweak the written portions of your listing as well to cater to the specific season, and include a few season-specific photos of your place.
If it’s autumn, then mention outdoor attractions or places to visit where people can see beautiful foliage. If it’s winter, then play up the creature comforts and coziness of the property. If people can see themselves vacationing there during off-peak times, they’re much more likely to be interested.
You may also choose to advertise lower rates during these times since they are considered to be an off-peak period. You don’t want to set prices so low that you can’t pay the mortgage, but lowering your rental price by a few hundred dollars during off-peak seasons can help draw in more renters.
Surrounding communities may have special annual events that go on at certain times of the year when it’s not prime vacation rental season.
Food and wine festivals, music events, local sporting events, or theatre spectaculars may be going on in your area and attracting potential guests. These are fun options for renters to enjoy while they stay with you. Make sure you play on these things in your listing, or directly approach people associated with these events to let them know about your property.
Those who have had a pleasant experience staying with you are much more likely to come back again in the following years, instead of going through the hassle of finding a new place to stay.
When you extend special offers to these previous renters, it may entice them to rent from you again for an impromptu winter getaway, especially if you’re offering lower rates or some other promotion.
They may remember their first stay with you fondly, and you can rest assured knowing that they’ll take good care of the property and will leave it in a tidy state, just like it was when they first arrived.
Although off-peak renting may be difficult, if you get creative with where you list your property, think about the season, tap into community events, and leverage previous guests – it may not be as daunting as you think!
Hopefully these tips will help you better fill your property in off-peak periods.
If you want to list your property on over 50+ booking sites with MaisonNets, without manually doing it all yourself”
