NEWS PROVIDED BY Rate Simple
Mar 09, 2023, 08:51 ET
LOS ANGELES, March 9, 2023 /PRNewswire/ — Because the vacation rental space has become more crowded in recent years, success hinges more than ever on selecting the right property. Location, amenities, local supply, and other factors determine how many renters you will attract and how much they’ll pay.
Here are tips for choosing a property with high vacation-rental income potential according to Rate Simple, a leading online mortgage lender whose experience and insights in the short-term rental market were recently featured in Business Insider.
Location: The location of the property is one of the most important factors to consider. Choose a property in a popular tourist destination or in an up-and-coming neighborhood that has growth potential.
Unique features: Consider properties that offer unique and attractive features, such as a stunning view, proximity to local attractions, or a unique architectural style.
Amenities: Look for vacation rental income properties that offer a range of amenities that are in high demand among travelers, such as Wi-Fi, air conditioning, a fully equipped kitchen, a washer/dryer, and parking.
Reviews: Read reviews to see what previous guests have said about their experience at different vacation rental income properties. Look for properties with consistently positive reviews and high ratings.
Price: The price of the property is an important factor, as it will impact the property’s profitability. Look for properties that are competitively priced compared to other properties in the area.
Competition: Research the competition in the area to see how many other vacation rentals are available and how they compare to your potential property in terms of amenities, price, and location.
Legal and regulatory considerations: Make sure that the property is legally allowed to be used as a short-term rental, and learn about any regulations or requirements that may apply.
Investigate the financials: Use a resource that has financial matrixes available like AirDNA or Mashable.
Options for turning around an underperforming vacation rental include pivoting to long-term renting for steadier, albeit smaller, revenue; seeking corporate renters; or converting the property for co-living so parts can be rented independently. Rate Simple offers more vacation rental income solutions here.
Though the vacation rental income market is much more competitive now—some might say saturated—opportunities for income are still out there.