Get help starting your business as a vacation rental host

How To Make Money as a Vacation Rental Host

When it comes to choosing a side hustle, one of the biggest pieces of wisdom is to start with what you already have. It's much easier to capitalize on skills or resources that are already available to you than it is to try to start entirely from scratch.  For people who have extra space (even if it's just an extra room!) becoming a vacation rental host is an attractive option—not to mention a potentially lucrative one. According to one survey, Airbnb hosts make an average of $924 each month—not a bad haul for passive income. And of course, some vacation rental hosts make much more than that. 

That being said, vacation rental hosting isn't as simple as just snapping some pictures of your pad and posting them online. There are a lot of logistics that go into it, and to be successful, you'll need to keep all of them in mind. Here's a quick rundown of vacation rental hosting tips for owners that you'll want to consider:

Determine Your Capacity

"Capacity" here refers to a couple of different things. First, of course, it's important that you be realistic about the capacity of your rental property (how many people can you fit? will you allow pets?). But you'll also want to think about your own capacity in terms of the resources you're willing to commit to making money with vacation rentals. For example:

• How much time and energy do you have to commit to your side hustle as a vacation rental host? Keep in mind that making money on a platform like Airbnb or VRBO will entail regular communication with potential clients, tending to guests when they're there, cleaning your space in between guests, and various other administrative and miscellaneous tasks.
  
  

• How much money are you able to invest in your vacation rental property?
  To make your place stand out, it needs to be attractive and well-stocked. For most vacation rental hosts, this means investing a fair amount of money in furnishing, decorating, and stocking their property with essentials and amenities. Not to mention overhead costs such as utilities, Internet, and any host service fee charged by the platform you use to advertise your rental property.

In order to be successful as a Vrbo or Airbnb entrepreneur (or "Airbnbpreneur," as they're sometimes called), it's essential that you have a good idea of your capacity ahead of time to ensure that you come out in the green each month. Overcommitting yourself in terms of time and energy can lead to a poor guest experience, which leads to bad reviews for you, which leads to fewer clients down the line.

Similarly, underestimating the amount of up-front costs for hosting a vacation rental property can put you in the hole early on, which puts you at a disadvantage if you end up with fewer bookings than expected or run into any unanticipated costs.

At this stage, it might be a good idea to draw up a business plan to help give some structure to your Airbnbpreneur endeavors. For help fleshing out your business model and crunching the numbers, consider finding a mentor who can help by providing guidance troubleshooting common issues. 

Do Your Research (and Paperwork)

Before listing your property, take some time to look at other vacation rentals and hotels nearby. These will give you a good idea of the going nightly rate for rentals in your area, which will help you establish your baseline price. From there, you can always charge more for added amenities or peak seasons.

Make sure to also do your due diligence in terms of researching property laws, HOA rules, and any other state/local regulations. Some areas restrict or prohibit short-term rentals, or mandate the addition of extra taxes and fees. Further, if you rent (rather than own) the property you intend to market, make sure that your lease agreement allows it. 

Go the Extra Mile

As a vacation rental host, your goal is to make your property stand out against all of your competitors—and that includes both hotels and other vacation rental properties. That means anticipating the needs and wants of your target market in order to give them the most luxurious experience possible. There are a lot of ways you can go about this, such as:

• Offering flexible check-in times

• Providing welcome baskets

• Stocking your rental property with snacks and/or beverages

• Investing in high-quality towels, sheets, and blankets

• Offering complimentary WiFi or cable TV

• Including small luxuries like nice soaps or bath products

Even if you don't have a lot of money to invest, there are lots of ways you can give your guests the VIP treatment. For example, you might include a handwritten welcome note, or a list of personally curated recommendations for activities and places to eat in your area. Guests who feel welcome and pampered are more likely to re-book with you in the future, or recommend your listing to their friends. Plus, adding extras to your rental allows you to upcharge!

Going the extra mile also means making sure that your vacation rental property stands out online. Make sure that the photos and description attached to your listing portray your property in its best light—even if that means hiring a professional photographer to help with pictures, or upgrading your own camera. 

Don't Have a Place of Your Own? Become a Co-Host

Don't have a spare room or house of your own to rent out? HOA laws got you in a tight spot?  Fortunately, owning property isn't your only option for how to make money with vacation rentals. Consider joining the vacation rental industry in another capacity—for example, as a co-host. Co-hosts help vacation rental hosts with the administrative and logistic side of vacation rental hosting. Duties might include replying to messages, confirming bookings, helping with check-in/check-out, and supervising maintenance of the property in question. 

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