If you’re looking to make money with real estate or if you are currently a landlord, it is significantly important to understand how to manage that property the correct way. Especially if you want to do short-term rentals. Along with knowing how to fix things if they break, you’ll need to wear many hats as a property manager. Knowing how to manage your property properly will either skyrocket you into success or leave you at a loss.
Entrepreneurs have fallen in love with rental properties, and not just long-term rentals. We have seen the rise of converting homes, condos, and multi-unit properties into short-term rentals. You can thank Airbnb for the shift in the market. If you’re looking to get into the short-term rental game, then take a look at some of our top tips to having success in the world of short-term rentals.
The first and most important tip is communication. From the first contact with the future short-term tenant, you must set the right expectations about the property and allow them to contact you with any need or complaint. For example, when it comes to short-term rentals, if you describe a feature that’s not available in your unit, it’s not the end of the world. But, if you fail to communicate that mistake with the guest and neglect to find a solution, then you could have a significant issue on your hands that will likely result in a complaint or bad review. Every dispute can be resolved with the proper amount of communication and by determining what the problem is that needs to be solved.
Know Your Home
After purchasing your new property, you should first and foremost get to know the home. What we mean by this is to check the water heaters, the ac, the fans, and test all of the electrical sockets. Going the extra mile and staying in your new property before renting out is ideal. Take showers in your property, use the washer and dryer, and test everything out. Notice what is missing from giving you a comfortable experience. The last thing you want is for your renter to be using one of the systems in the home and there be a malfunction.
Work with a knowledgeable real estate agent
A realtor’s knowledge of the vacation rental business can often be skewed. Some agents have great insight into the industry, while others know little to nothing about it. It is essential to find the right agent who understands the area entirely, and who understands the business perfectly as well. Take the time to do in-depth research on an agent who can help you reach your goals.
Provide easy-to-use instructions
A home instruction manual is probably one of the most overlooked yet essential steps. Leaving a good Instruction manual for your guests is crucial. The manual should include how to use the A/V systems, and how to turn on the TV and cable. It should show them how to quickly wash a load and instructions in case the electricity goes out. These instructions will save your renter a lot of time and frustration. They will also keep you from receiving irrelevant questions from every guest you host.
Include proper inventory
Always assume that your guests will want to cook, and stay in the home for the majority of the stay. A significant mistake renters make is assuming the guest will be eating out for every meal and predominantly using the rental as a hotel. Assuming so leads to poor inventory in the kitchen and other essentials. Properly stock the kitchen and home to ensure that nothing is lacking. If you’re unsure, test out the kitchen yourself. Attempt making a full meal, and come up with different scenarios in your mind. Chances are you’re missing something.
Be realistic about your pricing
Although we all think our properties and homes are “worth much more,” we need to be realistic about how we price them. Finding the sweet spot is hard to find, but it can be done quickly by finding other listings that compare to your home.