Tips For Turning Your Property Into A VRBO

So you see the latest trend in earning extra income is renting out a room or renting out a house instead of just selling it. Before you jump into offering a VRBO or AirBnB, here are 8 things to consider when starting this adventure of Vacation Rentals.

1. Research Your Local Competitors

A vacation rental means some financial investment from your end. Knowing the local competition in the area makes it easy for you to understand where your rents need to be. Every rental owner is here to make profits and that can give birth to local competition in terms of attracting guests, prices, deals and amenities offered.

You must regularly check that your rental is priced competitively so you don’t lose income.vrbo Northstar Investment Properties

2. Have Your Property Inspected

Before you proceed to list your vacation rental or purchase one, it is always recommended by the industry experts to have your property inspected. A property inspection can discover pest infestations, potential fire hazards and technical issues that are often overlooked. It can assist you to make necessary renovation, minor changes and place safety precautions and tools at the short term rental.

3. Be Prepared To Pay Taxes

Naturally, to know about the local laws and rules related to a vacation rental. Do not proceed ahead if the local laws prohibit short term rentals. If your vrbo is registered, you may have to pay the regulatory taxes. Your regular tax-compliant efforts can assist you to stay away from any legal trouble. Inquire with your CPA expert about the taxes that you are required to pay as a vacation rental owner. The best option is to put your vrbo or airbnb into an LLC to protect your personal assets and we also offer a course on setting up your structure for tax advantages as well.

4. Organize For Home Insurance

Arranging for a home insurance as a landlord should be the first priority for a vacation rental owner. Talk with an insurance professional about an appropriate insurance that covers your vacation rental in terms of damages, fire, thefts, injuries and other unforeseen events that may occur before, during and after a guest’s stay.

5. Commit To Your Vacation Rental (VRBO)

Prospective vacation rental owners should always be committed to their vacation rentals and customer service. Be ready to offer time, money and customer service skills for your vrbo. Even if a professional management firm will manage your rental, keep a close watch on any changes, operations and how your guests are treated in the rental. Also, be sure to lock certain rooms with a code key for specific access for different guests.

 

6. Evaluate Your Expected Costs

Before diving into your first vacation rental, analyze the total costs and expenses that will occur from the property. Typical expenses include taxes, advertising costs, maintenance costs, vacancy loss costs, utilities, repairs, etc.

Calculate the expected income based on the local rental trends, the rental property size, class and amenities, expected guests per week/fortnight/month and special deals that you may offer.

When you convert your property to a customized vacation rental or AirBnB, your costs may increase and it may take time to cover these costs. So you will have to bear the costs in case of zero bookings in the off-season.

7. Get Extra Help

A vacation rental owner may not be always available for an emergency call from a guest or during a check-in and check-out. As a vacation rental owner, arrange for a professional small team who can look into the operational issues, emergencies and queries related to your rental in your absence from the guests. This saves time and effort of the home owner without any discomfort to the guests. Affordable and reliant team for your short term rental can be of great service to you and your future guests.

8. Market Your VRBO With A Great Description

Properties sell and rent based on how you portray them. A brief and effective description of your vacation rental can convince people to spend their vacation in your compatible property. Describe your home in terms of size, location, landmarks, price, amenities, etc. with several quality pictures that support your claim.

Be in the shoes of a traveler and imagine what questions a traveler might have when choosing a rental and place the answers in the description. Choose your words carefully and use specific and attractive keywords in the description.

If you are confident enough to survive in the market on a regular basis, welcome to the vacation rental industry.

 

In our Real Estate Investing Education we offer a course on earning the maximum profit in nightly rentals, VRBO and AirBnB investments. To learn more, attend our next information session this week!

Call 480.719.0074 to Register.

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