In 2016, I read a book that forever changed my life: “Rich Dad, Poor Dad” by Robert Kiyosaki. It emphasizes the importance of financial literacy, financial independence and building wealth by investing in assets, which includes property and businesses. Soon after I read that book, I started investing in real estate.
When investing in real estate for vacation rental purposes, owners must decide if they should opt for long- or short-term rentals. Most of the time, the decision relies on the nature of your property itself. However, there are several pros and cons to these two strategies.
A short-term rental (commonly referred to as a vacation rental) is the leasing of a furnished property on a short-term basis. Nightly or weekly rentals depend on the owner, rental location and many other factors. A long-term rental typically refers to a property that is leased for periods of one month or longer. Whether an entire home or just one room is for rent, renters pay the homeowner each month and typically take care of other expenses like utility bills.
With over 23,000 vacation rental sites in the United States alone, it can be overwhelming to decide which platform to use. A few of the most popular are AirBnB, VRBO and HomeToGo.
Airbnb has become a favorable option for hosts who are offering their home or extra space to guests, as well as travelers seeking a unique, cost-efficient and homey alternative to the everyday mundane hotel room. An interesting fact is that long-term stays of 28 days or more have been trending yearly and are an excellent direction for the company.
HERE ARE SOME TIPS FOR CREATING A PROFITABLE VACATION RENTAL PROPERTY:
• Picking a décor theme helps to narrow down what items you will need and what will flow with the vibe.
• Bold colors will make your property stand out from others and help create a memorable experience for your guests. Adding a colorful area rug or bright-colored accent pillows is a great way to make your space pop.
• Having comfortable bedding options, sheets, duvets and blankets for your Airbnb bedroom is one of the most important ways to ensure you get 5-star reviews and become a super host. I prefer soft, bright white bedding. It lightens up your space and creates a clean, crisp look. Bonus: you can bleach most stains.
• Quality bath towels are a big deal. Designated black makeup towels are a good idea, too.
• A luggage rack is a handy feature that’s sure to be appreciated in your short-term rental.
• White subway tile is fabulous for your kitchen at home, but when you’re on vacation somewhere tropical, a unique, colorful backsplash makes a statement to your guests.
• A coffee and tea bar is essential. You can create one in a small corner, on the countertop, in the family room or on a mobile kitchen island.
• Beach baskets are a nice touch, and I like to place welcome gifts on each bed. It gives guests a more personalized experience.
• A welcome table is an exceptional idea. You can include items like: – Guest sign-in book – Check-in/out instructions – Wifi information – Guest welcome baskets – Local restaurant menus – Your contact information However you set up your rental property, keeping guests and their comfort in mind is the best way to ensure your success.