All the Bookings You Want:
A Hands-on Guide to Profitably Renting
Your Vacation Property
by
Alfred and Emily Glossbrenner
Second homes are hot! But you probably already knew that. Still, the latest statistics are revealing:
Intersecting Trends
Intersecting with the upward trends in second-home ownership and interest in offering those homes as vacation rentals is the growing trend among consumers to turn to the Internet when planning a vacation. As reported recently by the Associated Press, a tracking study conducted by an independent research firm found that more than 35 million Americans purchased travel-related products and services online during 2003, up 17% from the previous year. Another 19 million people used the Internet for vacation travel research.
A Full Spectrum of Options
The bottom line is this: Thanks to the Internet, those of us who own vacation property have an entire spectrum of new options at our disposal. And, this is incredibly empowering!
At one end of the spectrum is what might be called the “augmented” traditional rental approach. Here, you sign up with the same trusted rental agent or property manager you’ve always used. But you give your vacation property an advertising boost by listing it on a few selected Web sites. Your online ads can direct prospective renters to contact either you or your rental agent/property manager. The goal, of course, is to increase the number of potential renters who discover your property and ask for it specifically when they call to book a vacation rental.
At the other end of the spectrum is the “do-it-all-yourself”option. This is a lot easier than you might imagine, and it has the benefit of saving you thousands of dollars a year in commissions and fees.
In between are the “negotiated” options. For example, you might strike a deal with your rental agency in which you pay a reduced commission on the rentals that your Web listings generate. Or perhaps you agree that you’ll handle the reservation side of things and buy other services typically performed by a property manager on an à la carte basis. Remember, in real estate, absolutely everything is negotiable!
Small Investment/Big Returns
Posting an ad for your property on the leading Web sites is cheap—it will cost you a total of less than $600 a year to list on the four leading sites, including three to four color pictures. But the key concept is options. That’s what’s new. That is what the Web now offers. It is what is fueling the revolution among property owners.
It’s a revolution worthy of a book. And, as the authors of over 60 books, we have written one. It’s called How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from your Second Home (FireCrystal Communications, 2004).
For a complete description, as well as details on how to order a copy, we encourage you to visit our Web site (www.fullybookedrentals.com). But to give you a sampling of what’s covered, we’re pleased to offer these ten tips on how to successfully rent your vacation property on the Internet. Just keep in mind that they only scratch the surface of all that’s possible now that you have the World Wide Web on your side!
10
Tips for Profitably Renting
Your
Vacation Property Online
Tip # 1: Study the competition.
Before you begin to prepare a listing for your vacation property, take the time to analyze what’s being offered by your competition. There are many Web sites devoted to vacation rental advertising. (The Yahoo directory’s “Lodging>Vacation Rentals” category includes literally hundreds of them.) But for the broadest, most comprehensive sample, go to the leaders in the field. These include, in alphabetical order, the Rentors.org sponsor sites:
As you review listings posted by your competitors, put yourself in the shoes of a prospective renter. Pretend that you’re searching for a place to spend your next family vacation. Which listings do you find most appealing and why? What are the rates? How do the owners handle deposits, cleaning fees, and other charges? Print out the property listings you really like and use them as a model for creating your own listing.
Tip # 2: List your property on the leading vacation rental Web sites.
You’ll need to list your property with several vacation rental sites in order to generate all the bookings you want. To get the most bang for your advertising buck, we recommend starting with the sites in Tip #1. They cover vacation destinations throughout the world—not just for a single region or for a particular “vacation hotspot.” And they’ve all been around long enough to have developed a loyal following of vacation travelers, who check these sites first whenever they want to search for rental properties.
Depending on the location of your property, you may eventually need to list with one or more region-specific and special-interest sites. But avoid the temptation to accept all the “free listing” offers that come your way. Five or six listings are quite manageable. Venture much beyond that and you’ve got a major project on your hands each and every time you want to change rates, add an amenity, or make other modifications to the information you present about your property.
Tip #3: Take the time to shoot lots of really great photos.
In the vacation rental business, photographs are crucial. If your property is in a highly competitive location, the quality (and quantity) of the pictures in your online listing can make all the difference in the world. Remember, most of your guests will be renting your property sight unseen. So the more you can do to show them its charms and eliminate their doubts, the better.
Make an effort to “dress the set” for each shot. You might even want to consider hiring a professional photographer. A pro will have the knowledge and equipment to advise you on “composition” and to properly light each scene. We also recommend that you take lots of pictures. (Film is cheap, and digital photography is even cheaper.) In the future, you may want to pay to add extra pictures to your online listings. Or you may want to create your own personal Web site. Either way, you’ll be glad to have those additional photos.
Tip #4: Write a wonderful description of your property.
Sure, easier said than done. Many people freeze up when they have to write something. That’s why so many of your competitors’ property descriptions are so bad, so short, and so thin on details. Here’s a trick you can use to overcome writer’s block and get your creative juices flowing:
Imagine that you are describing your vacation property to a very special aunt and uncle. They’ve never seen the place before, and you’re thrilled that they’re coming to stay for a week. What would you tell them? Why do you love the property? The location? What joys will they (and your renters) find there? Put some personality into your property description to set your place apart from every other “2BR/2BA Condo w/Ocean View.”
And remember: You can always go in and edit or add to the text descriptions in your online listings.
Tip # 5: Offer an online availability calendar and guest book for your property.
Prospective renters like to see immediately whether the dates they want are available. You’ll increase bookings and minimize the time you spend sending out “Sorry we’re already booked that week” messages by using the free Universal Availability Calendar offered through Rentors.org.
Providing enthusiastic customer testimonials is also a surefire way to boost prospective renters’ confidence that your property will live up to their expectations. The Rentors.org Universal Guest Book feature (also free) makes it easy for renters to record their comments and help spread the word about the great experience they had renting from you.
Tip # 6: Get approved to accept credit cards.
Your renters will appreciate the convenience associated with paying by credit card. But you’ll also find that accepting credit cards makes your life much easier. Instead of waiting for rental deposit checks to arrive by mail (and then waiting even longer for them to clear the bank), you can process credit card transactions immediately and see the funds in your checking account within just a few days.
Rentors.org offers a Credit Card Acceptance Program that’s specifically designed for vacation rental owners. All you need is a computer with Internet access—you do not need to rent a special terminal or buy special software—and the application and approval process can be completed in a matter of days.
The key word here is reliable. In a resort/vacation area, “cleaning and service people” are almost as numerous as restaurant waiters and waitresses. But what you need are permanent residents, not a group of kids whose main interest is skiing or pointing up their tans.
You have at least as many options for finding and hiring “help” at your vacation site as you do at your home location. Start by asking other property owners for recommendations. Look into buying services à la carte from local rental agents or property managers. Or consult the Yellow Pages on the theory that any company that can afford a Yellow Pages ad must have something going for it.
It goes without saying that when you find good people, you should treat them well so that your property will be among their top priorities whenever it needs attention.
Tip # 8: Pick Up the Phone!: Respond promptly to any rental inquiry.
People making vacation plans often call or send e-mail inquiries to multiple property owners. So it’s critical that you check for new phone and e-mail messages several times a day and respond to rental inquiries promptly—by phone, whenever possible.
The most successful vacation rental owners are the ones who aren’t shy about picking up the phone and calling prospective renters—instead of relying exclusively on e-mail.
When you call, take the opportunity to project your personality and to convey the “specialness” of your place. The vacation rental business is not about selling identical hotel rooms. It’s about persuading someone to rent your property instead of another one that may be right down the hall in the same condo complex.
Tip # 9: Join your local Visitors Bureau or Chamber of Commerce.
The quality and vigor of local visitors bureaus, chambers of commerce, and similar organizations vary widely, of course. But member benefits often include supplies of attractive maps and area guidebooks that you can provide to your renters, as well as listings in printed and online directories that will help you spread the word about your property.
Once you’re plugged into your local hospitality industry, you may get all kinds of referrals from people who are holding weddings, family reunions, and other gatherings.
Tip #10: Remember: You're a host, not a landlord.
It’s absolutely essential that you document reservation details, payment requirements, check-in and check-out procedures, pet and smoking policies, and so forth. Establish relationships with a good CPA and real estate lawyer who can help to ensure that you're in compliance with all the various rules and regulations governing vacation rentals. Consider HotSpot Management if you need help making sense of the requirements for collecting and paying sales tax.
By all means, ask the experts to review your rental forms and procedures. But try to avoid overly complex legal jargon of the sort typically found in long-term lease agreements. Make all of your written communications and phone conversations with prospective renters friendly and upbeat.
Think of yourself as a host, not a landlord. By the time your renters check in, they’ll view themselves as “guests” in your wonderful vacation home, and they’ll treat the place accordingly. ____________________________________________________________________________________________
About the Authors. Alfred and Emily Glossbrenner are the authors of over 60 books on home buying, personal finance, the Internet, and other topics. Their most recent book is How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from your Second Home (FireCrystal, 2004). Designed as a complete “seminar-in-a-box,” this 320-page book/CD package shows you how to create listings that really SELL on the leading vacation rental advertising sites. It also includes tips and techniques for managing your property, a CD with sample forms and checklists that you can customize as you see fit, and a variety of money-saving offers. For more information and to order a copy, visit www.fullybookedrentals.com.