10 Things You Need to Know to Run a Successful Airbnb or Vacation Rental

1. Location

Of course! Choose a location that is popular with tourists and has a high demand for vacation rentals.

But wait, what if my location is not as great?

If your vacation rental is in a location that is not as desirable as others, you may have to focus on offering additional amenities or a unique experience to guests in order to compensate. This can include:

• Offering a lower price: If your location is less desirable, you may be able to attract more guests by offering a lower price than comparable properties in more popular areas. Read #4 below for more information on pricing strategies.
• Focusing on unique experiences: Offer a unique experience, such as a scenic outdoor area, a cozy atmosphere, or a customized interior, to make your property stand out.
• Providing additional amenities: Offer additional amenities, such as a private pool, hot tub, or outdoor kitchen, to enhance the overall experience for guests.
• Marketing your location's strengths: Emphasize the positive aspects of your location and market it as a peaceful escape from the hustle and bustle of more popular areas.
• Focusing on specific niches: Consider targeting a specific niche of travelers, such as families, pet owners, or outdoor enthusiasts, who may be more interested in your location and its offerings.

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2. Property condition

Another basic one - keep the property in excellent condition and ensure that it is well-maintained and clean.

Here are some tips for keeping a vacation rental property in top shape:

• Regular maintenance: Do not delay regular maintenance tasks such as plumbing and electrical checks, painting, and cleaning to keep the property in good condition.
• Quality furnishings: Invest in high-quality furnishings and linens that are comfortable and durable.
• Up-to-date appliances: Keep appliances up-to-date and in good working condition to ensure they function properly and are convenient for guests.
• Cleanliness: Hire professional cleaners to ensure that the property is spotless after each guest leaves. We also, for example, make sure that our cleaners report any damage or maintenance needs on the spot and that they run the sinks and showers to make sure these are not slow to drain.
• Preventive measures: Take preventative measures to reduce the likelihood of damage, such as installing smoke detectors and placing rugs in high-traffic areas . Besides that, for example, we have placed flood detectors connected to wifi under sinks and next to toilets.
• Inventory management: Keep an inventory of all the items in the property, and replace or repair any damaged or missing items promptly.
• Quick response time: Respond quickly to any maintenance requests or complaints from guests to maintain a positive reputation.
• Feedback and ratings: Monitor feedback and ratings from guests and make changes based on their suggestions to improve the guest experience.

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3. Amenities

Offer the right amenities and features to appeal to guests, such as Wi-Fi, and a well-equipped kitchen.

The most sought after amenities in a vacation rental can vary depending on the location and target audience, but some of the most popular include:

• Wi-Fi: High-speed internet is a must for many guests. Consider at least 100 mbps or more.
• Kitchen facilities: A well-equipped kitchen, with appliances like a refrigerator, oven, and stove, is a desirable feature for guests who want to cook their own meals.
• Air conditioning/heating: Climate control is important for guest comfort.
• TV: A large smart TV with streaming apps that guests can log onto with their own accounts is a common request. You don't really need to offer cable as long as you disclose it on your listing.
• Parking: A designated parking spot or convenient street parking can be a selling point.
• Washer/dryer: Guests appreciate the convenience of having access to laundry facilities.
• Outdoor space: A backyard, patio, or balcony can be a great addition for guests to enjoy the outdoors.
• Towels and linens: Providing fresh towels and linens can make a guest's stay more comfortable.
• Check-in/check-out flexibility: Offering flexible check-in/check-out times can be a valuable perk for guests.
• Personal touches: Small details such as a welcome basket, books, or local recommendations can make a guest feel at home and enhance their experience.

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4. Pricing

Set a competitive price for your property based on market conditions and the value you are offering.

• Dynamic pricing: This involves regularly adjusting the rental rate based on demand and availability.
• Seasonal pricing: Set different prices for peak and off-peak seasons to take advantage of seasonal demand.
• Length of stay discounts: Offer discounts for longer stays to encourage guests to book for a longer period.
• Occupancy-based pricing: Charge higher rates when the property is in high demand and lower rates when occupancy is lower.
• Package pricing: Offer bundled packages, including meals, transportation, or activities, to increase revenue.

There are several software companies that offer dynamic pricing solutions for vacation rental properties, including:

• Beyond Pricing: A dynamic pricing platform that uses data and algorithms to optimize pricing for vacation rentals. This is the one we use and feel comfortable with and their customer service is superb. We've expanded more on this service at the end of this blog post.
• PriceLabs: A dynamic pricing solution that uses real-time market data to set optimal prices for vacation rentals.
• Wheelhouse: A dynamic pricing platform that uses machine learning algorithms to set and adjust prices based on demand and market conditions.
• Kigo: A vacation rental management software that includes a dynamic pricing module to help owners optimize pricing.
• Rentals United: A vacation rental management software that offers dynamic pricing capabilities and integrates with multiple channels.

These are just a few examples, and there may be others that fit your specific needs and requirements. It's best to research and compare different options to find the software that works best for your vacation rental business. Check out our blog post on Key Factors to Consider when Setting Up your Airbnb Pricing Strategy for a full explanation.

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5. Photography & marketing

Use online platforms, such as Airbnb, to list your property and reach potential guests and make sure you use high quality photos - we can’t empathize this enough.

Photography is a crucial aspect of marketing your vacation rental on platforms such as Airbnb. Here are some tips to help you get the most out of your property's photos:

• Do you take great pictures and have access to a mirrorless or DSLR camera? If not, hire a professional photographer as she or he can help you showcase your property in the best light, making it more appealing to guests.
• Use high-quality images: Make sure that your photos are clear, well-lit, and show your property in its best condition.
• Include multiple photos: Provide a comprehensive tour of your property by including a variety of images, such as shots of the exterior, interior, bedrooms, bathrooms, and common areas.
• Highlight key features: Showcase your property's unique features, such as a private pool, outdoor grill, or amazing views.
• Edit your photos: Use photo editing software to enhance your images, making sure that they look their best before you post them online. Do not over do it though.

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Remember, the photos you use to market your vacation rental are often the first impression guests have of your property. By investing in quality photography, you can help attract more bookings and increase the overall success of your vacation rental business.

For listing your vacation rental, the top 5 sites are:

• Airbnb
• Booking.com
• TripAdvisor
• VRBO/HomeAway
• Expedia

And yes, it might be a good idea to list your vacation rental on your own website, in addition to the above-mentioned platforms. Having a personal website can give you more control over your brand, allow you to showcase your property in more detail, and provide a direct booking option for guests. This can help you reach a wider audience and potentially increase bookings. We would recommend that you vet the guests by having a phone conversation right after they book.

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6. Communication

Respond promptly to guests' inquiries and be available to answer any questions they may have. This is a must!

Communication is a key aspect of running a successful vacation rental. Responding promptly and effectively to guests' inquiries helps to build trust and establish a positive relationship with them. Here are a few tips for great communication with guests:

• Respond quickly: Make it a priority to respond to guest inquiries within a reasonable time frame, and within 24 hours. The sooner the better because they might be looking at other options and the feedback we get tells us that some guests choose where they stay based on how responsive the host is.
• Be friendly and helpful: Use a friendly and helpful tone in your responses and provide guests with clear and concise information.
• Anticipate needs: Think about what guests may need during their stay and provide them with useful information and tips in advance.
• Be available: Make sure guests know how to contact you during their stay, and be available to assist with any issues or questions they may have.
• Follow up: After guests have checked out, follow up with them to see if they had a good stay and if there is anything you could have done better.
• Good communication can go a long way in creating a positive guest experience, and can help ensure repeat business and positive reviews.

You can automate most communication with guests and we'll talk about that in later posts in detail.

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7. Guest experience

Make sure guests have a great experience from check-in to check-out by providing a detailed welcome guide and being available to assist with any issues.

A detailed welcome guide can be an important part of providing a great guest experience. It can include information on the following:

• Check-in and check-out procedures
• How to use the amenities and appliances in the property
• Local attractions, restaurants, and other points of interest
• Emergency contact information
• House rules, such as quiet hours and pet policies
• Any specific instructions for the property, such as how to operate the heating or cooling system

Having this information readily available in a clear and concise format can help guests feel more comfortable and at ease during their stay, and can also help to avoid any confusion or misunderstandings.

Additionally, having a well-prepared welcome guide can also save time and effort for both the host and the guest by answering common questions and addressing potential issues before they arise. Our Digital Welcome Book solves this challenge beautifully. Check it out below.

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8. Cleanliness

Clean the property thoroughly between guests to ensure it is in good condition for each new arrival.

To ensure a spotless rental unit:

• Hire a professional cleaning service or someone you really trust to do the job well: We actually train and use independent cleaners that have worked one way or another that works great for us because it is already people that we know and trust, not a third-party company. We highly recommend that if you have access and trust someone that can do the job.
• Establish a cleaning checklist: Have a detailed cleaning checklist to ensure that all areas of the property are thoroughly cleaned and disinfected.
• Provide cleaning supplies: Keep a sufficient supply of cleaning supplies and equipment on hand to make it easy for the cleaning team to complete their work effectively.
• Pay attention to high-touch areas: Pay special attention to high-touch areas, such as door handles, light switches, and bathroom fixtures, to ensure that they are thoroughly cleaned and disinfected.
• Invest in quality linens and towels: Provide high-quality linens and towels that are cleaned and freshened between guests.
• Regularly deep clean: Schedule a deep clean of the property on a regular basis to ensure that it stays in top condition.
• Encourage guests to report any issues: Cleanliness issues are the most important and must be addressed promptly.

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9. Legal compliance

Ensure that your vacation rental complies with all local laws and regulations, including zoning, licensing, and insurance requirements.

For legal compliance in running a successful Airbnb or vacation rental, the most important things to consider are:

• Zoning laws: Ensure that your property is located in a zone that allows for short-term rentals.
• Licensing requirements: Obtain any necessary licenses and permits required to operate your vacation rental legally.
• Insurance coverage: Have proper insurance coverage for your property, including liability insurance and property damage insurance.
• Tax obligations: Know and fulfill your tax obligations, including paying any required hotel or occupancy taxes.
• Health and safety regulations: Meet all health and safety regulations, such as smoke detectors and fire safety requirements.
• Fair housing laws: Comply with fair housing laws by treating all guests equally and not discriminating based on factors such as race, religion, or gender.
• Noise and disturbance regulations: Follow regulations regarding noise levels and disturbance to neighbors, to maintain good relations with the community.

It's important to research and comply with all relevant laws and regulations in your area to avoid legal issues and maintain a successful Airbnb or vacation rental business.

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10. Continuous improvement

Continuously evaluate your property and guest experience, making improvements and adjustments as needed, to keep your vacation rental in high demand.

Some ways to achieve this include:

• Gathering feedback from guests: Ask guests for their thoughts and opinions on their stay, what they liked, and what could have been better. This feedback can help you identify areas for improvement and make changes to enhance the guest experience.
• Staying up-to-date with industry trends: Keep up-to-date with the latest trends in the vacation rental industry to ensure your property remains competitive and in-demand.
• Regular maintenance and updates: Maintain and update the property as needed to ensure it remains in good condition and meets the expectations of guests.
• Improving your marketing: Regularly review your marketing strategy to ensure you are reaching potential guests and effectively promoting your property.

By continually improving your property and guest experience, you can keep your vacation rental in high demand and attract repeat guests.