Are you getting the most out of your vacation rental property? These five tips will help you achieve maximum revenue so that you can enjoy your rental property even more!
1. Focus on Occupancy to Drive Revenue, Not Rates
One of the more common questions we receive about rentals is- “Should we raise rates and avoid discounting our rates to increase revenue?” Though rates are a very valuable tool in a revenue and dynamic pricing strategy, the short answer is “not really”. The math is simple: a single $300 (that could be lost by not having competitive pricing) will result in more income for you than three nights at $20 more per night. Over the course of a 100 night year, 10 extra $300 nights will equal more revenue than 100 nights at $20 more each. Always remember- Occupancy is the key to more revenue, not rates. Rates are only a tool to increase occupancy. If you want more revenue, book more nights at a lower rate! We are not saying that we should be cheap, or undersell. But we do recommend being competitive with rates, using a dynamic pricing structure based on market data and competitive analysis of similar properties on a daily basis.
2. Professional Photos Pay Off!
Your property may be impeccably clean, full of rustic charm, expensive upgrades, and stunning views, but if the photos in your listing don’t reflect those qualities, potential renters won’t be enticed. Poor lighting, bad angles and otherwise sloppy photographs might cause people to pass over your rental home. A professional photographer knows how to capture the true charm of a property, and tell its unique story through a lens. Though many people are able to capture very nice photos on point and shoot cameras, photographers use very expensive equipment to increase the color and light spectrum, and use techniques to accentuate the composition. In addition, most of the magic in photos occurs after the shot, on a computer, so editing capability is very important. Even a mid level property can look brand new and appealing with professional photography. Your photos are the first point of contact for your property- make them stand out!
3. Upgrades and Amenities- Don’t get lost in the crowd
Breckenridge is host to some 4,000 short term rental properties, and making your property stand out from the pack is fundamental to maximizing your revenues. With each purchase you make, upgrade you implement, and addition to your property keep in mind that you must focus on differentiating your property from the thousands. One way to stand out is to be creative when it comes to amenities. Every rental home will have internet and TV. Most properties will have laundry available. Many will also have a hot tub. All of these amenities are attractive to renters, but they don’t set you apart, as these have become expectations of most travelers. To capture the attention of more guests, consider adding more unique amenities such as, unique and useful kitchen appliances, a lounge area with hammocks, snowshoes and bikes and other outdoor activities equipment, an attractive fire pit, a game or theatre room, streaming movies, or even a massage chair. While these items may seem simple, they will set you apart from other rentals, driving guest interest and overall occupancy. Be sure to highlight these amenities in your description of your rental property, and build excitement when guests are looking at your property online. Remember- you only get one change to make a first impression.
4. Employ a Professional Property Manager
While renting on your own or with a limited service/cut rate company may be appealing, nothing will drive overall revenue to your property more than hiring a professional and experienced property manager. Breckenridge Resort Managers is a leader in the Breckenridge property rental market and the global vacation rental industry. In addition to our Internet marketing company that looks after our overall internet marketing bundle (SEO, SEM, SMO, email, PPC), the owners are competent marketing experts as well. They have experience as past board members of the Breckenridge Tourism Office, Breckenridge Central Reservations, Chair of the Vacation Rental Management Association Marketing Committee, and Treasurer of the VRMA. BRM’s credentials are unrivaled in Breckenridge relative to marketing, and we use that knowledge to assist our owners in outperforming the competition. We utilize a vast distribution network of many types of lead generation services and travel partners, a professionally managed internal email marketing, an in office marketing strategy, and a comprehensive SEM/SEO strategy to not only drive visitors to our site but convert them. Managing a short term vacation rental can be a time consuming endeavor and a professional property manager will take out the headache of that process for you and drive revenue to your property at levels not possible for an individual owner. Remember- just like the changes at VRBO put many owners in a difficult situation, changes in the global rental market must be watched closely to anticipate changes, react, and keep your revenue one step ahead of the competition.
5. Rent when rates are high, and enjoy when rates are low
It might be tempting to use your vacation rental during Christmas or New Year break, but in Summit County, these periods account for the highest rental rates of the year. Rental properties are in high demand during Spring break, Christmas break, and much of the summer. If you are using your home during these peak times, this will prevent you from renting it for maximum rates. To make more revenue, and avoid the traffic, come early or late in the summer, and directly following Christmas break. Late in the ski season such as the second or third week in April, is also a good time to use your home rather than rent it. Remember, when rates and occupancy are high, that is the time to cash in.
These five tips will help you get the most revenue from your vacation rental property. Contact Breckenridge Resort Managers to find out what else you can do to get more from your property.