A growing number of people have become open to the idea of traveling for a lifestyle. The freedom that comes with roaming the globe in a nomadic fashion is appealing, and it’s a way of living that is on the rise. Remote working and the ability to stay connected with apps like Facetime has made permanent travel a much easier prospect.
The ability to stay in touch with friends and family via video calling or conferencing software eases the feeling of being apart. Travel as a lifestyle appeals to all age groups, and for those who have decided to live this way, the sharing economy provides multiple ways to keep cash flowing.
One of the most popular methods of generating income when traveling is by using your property as a short-term rental home. This is a method of revenue creation used by many travelers. Keep reading to find out how to make money on your vacation rental property.
Why Become a Vacation Rental Host?
There is good income potential from hosting guests on a short-term basis in return for compensation. It is a great way of turning your home into an asset rather than an expense. Your home is not empty while you are out on your adventures, meaning it will be less likely to be the target of criminal activity.
Renting your home out will help offset costs associated with the property’s upkeep as well as contributing to travel expenses. The financial benefits of renting are obvious, but how can that best be managed while you are away?
Now it is easier than ever to manage a vacation rental business remotely. Smart tools and advances in technology keep us connected like never before. Tasks can be automated and monitored to gain maximum profitability. This gives an advantage to anyone who is traveling but needs to keep an eye on the daily details.
How to Become a Vacation Rental Host
When deciding how to make money on vacation rental property, consider how much of your home you are willing to rent. Will it be the entire property, a couple of rooms, or a separate part of the house like a garden apartment or an above garage studio? Whatever you decide, make sure that your vacation rental site is clean and of a good enough standard to rent.
When assessing your property and determining suitability, check for things like:
- Size of the space;
- Access issues;
- Heat and noise levels;
- Structural problems.
You will need to check the legalities associated with becoming a vacation rental manager. You may need to obtain permission from a local housing authority or purchase a special permit that will allow you to use the property for short-term rentals.
Check for any restrictions or codes that may need to be observed and make sure you comply. You will also need to have the correct insurance and pay the appropriate taxes on the rental revenue you earn.
Home Rental Preparation
Along with getting your home into a condition that’s suitable for rental, you will also need to find out what the competition is doing. Finding out how much similar homes in the area are charging will help you to set an appropriate price for your property.
Marketing your home to the correct guests and charging appropriate rental rates will help you to attract the right people and maximize profits. When setting your prices, take the following into account:
- Property location;
- Local attractions;
- Area amenities;
- Special events or games;
- Home quality and decor;
- Access to transportation.
Consider seasonal fluctuations, and add items like damage insurance and cleaning fees. Determine how to make the most money on your rental property by assessing expenses and setting appropriate rental rates. If done correctly, you should be left with a nice profit.
Automate Tasks While Traveling
If your goal is to use your home to generate income while you are traveling, then you will benefit from automating routine management tasks. There will be tasks associated with your vacation property management that will need to be handled. Booking fees, rental agreements, customer service, and guest communications will all need to be managed if you expect to receive positive reviews.
Fortunately, there is vacation rental software available that can help you with many necessary functions. For ease of use, such software will integrate with multiple platforms, expanding accessibility and allowing you to keep up to date.
Being able to keep tabs on your business from a distance allows you to travel and manage your vacation rental home effectively. Check out this website to find out how vacation rental software can help you manage your property remotely.
Remote Management and Security
Planning how to make money on vacation rental property while traveling can be tricky but not impossible. Leveraging technological gadgetry will provide an easy transition between guests arriving and departing, and provide an added level of security.
Smart tools like automated locks can be used for key exchange, and surveillance tools will ensure that your home is protected.
Moreover, noise monitoring and home surveillance systems that include security cameras can be used to ensure that your home is being treated appropriately by guests. Smart thermostats that can be operated remotely allows you to control the temperature while the home is empty and keep the bills down.
If you have given any consideration to traveling as a lifestyle, then this article should help you to take the next step. Now that you know how to make money on vacation rental property, you should be able to use this form of real estate investing to ensure a regular income.
Do your market research and use the technology available to your advantage to efficiently and successfully manage your short-term rental business. This will make daily tasks run smoother, giving you plenty of time to plan your next travel destination.