The vacation rental business can seem quite lucrative at a first glance. But most owners, especially first-timers, can make certain decisions that can actually hinder their business –and these mistakes are usually avoidable. A rental business requires a significant amount of management and responsibilities that need to take on by the owners. The owners will also need to know how to market and advertise their rental business effectively and develop strategies too.
It’s vital that your rental property is priced wisely, and don’t forget to take into consideration the services and special facilities that are provided for the guests as well. Over-pricing might bring in a high profit for a very short time, but eventually people will find better deals somewhere else. Alternatively, prices that are too low will result in losses for the business. The right pricing can also attract the right types of guests. Have a good look at other the competitors and find out how to improve your pricing and services.
Not Screening Potential Guests
It’s common for rental property owners to simply take on every booking that comes their way, especially when they are starting out – but it’s very important to make sure you have a guest screening process. Unfortunately most owners have dealt with their properties or facilities getting damaged by unruly guests. Whether you are renting out luxury villas or short stay apartments, it’s important to have at least one phone conversation with potential guests to find out if the property would meet their needs and if they would suit your property as well.
An Unsatisfactory Website
An owner will need to create a website that will attract guests or at least make them consider the serviced apartments or bed and breakfast establishment and convince them to make a booking. Low quality photos in bad lighting will not give a good impression of your business and will also make the rooms look unsatisfactory. An owner should also aim to create and maintain a website with the latest information and photos.
Failure To Maintain Communication With Potential Guests
If a business is slow to respond to potential guests, there is a high chance of them getting impatient and then moving to the next place – this does happen quite often. Additionally, if you promised to provide a guest with information by calling them afterwards always do so. Don’t forget to keep records with updated information of past guests as well, and try to keep them informed with newsletters of the latest offers or developments through e-mail.