One of the biggest trends in non-traditional ways to generate income currently is the rental property game. Many jumped on this bandwagon in droves, and it does not show any signs of slowing down. Whether you are already a landlord and want to expand or are simply curious as to what a pie of this action might look like for you, there are some common denominators that renters are looking for that you should consider.
There are two areas to think about here, one being rentals for people’s everyday lives, and the other being vacation rentals. Each can help earn you a significant annual profit, but how to style them so you earn top dollar varies slightly. Once you have determined which type of dwelling you are trying to create from your specific rental property, you can dive into how to best renovate, style, and showcase your home to all potential renters.
Create a Modern Aesthetic
When considering a renovation for your rental property, it is important to be forward thinking. Of course, there are exceptions, when owners intend to create a specific vibe within their home that matches its geographic location, or the original intention of the property, but beyond that, it is best to have things feel modern, new, and luxurious.
If your space needs work to achieve this goal, consider investing in a large-scale renovation to increase your overall ROI. Elements like upgraded kitchens, spa like bathrooms, and outdoor entertaining areas are common wish list items. You may have to spend a little, to make a lot in this instance. Taking out a personal loan from a private lender to secure the funds for upgrades means that you have some wiggle room regarding the specifics of your loan.
Talk with your lender about what you intend to use the loan for, the scope of the project, and an estimated length of time. This information can help you come to a decision regarding how long of a repayment period you need, and can also be helpful when shopping lenders, because your interest rates will vary from firm to firm. Down the line, the monthly repayment of your loan can also impact where you sent your rental rates at since the whole point is to be earning a profit, or at the very least breaking even, certainly never to be losing money.
Have Unique Amenities
Let’s talk about vacation rentals specifically as here is where people are looking to escape their reality. When consumers search for vacation rental properties, often, they are looking for amenities. People want to feel pampered and, in a sense, catered to, while they are decompressing and relaxing their minds and bodies. A great way to decide where to place your focus, is to think about how you like to vacation, what types of elements do you expect and enjoy when you walk through the front door of a luxury hotel or rental home? Maybe you have already figured out how to build your dream vacation home on a budget and are now looking to spend a little extra, on the extras.
Pools, spas, fully stocked coffee bars, luxurious linens, these are all examples of ways to have unique amenities in your rental that not only will make people rave, but also pay top dollar. People do not take vacations to exert a ton of effort, so while huge perks like pools and outdoor kitchens are certainly appealing, even the little things like toilet paper and flatware sets can leave a huge impression. Think about your home, its location, and the type of renters you are targeting. The unique amenities that you should provide for a family, for example, will vary greatly from what you would consider for a home targeted towards bachelorette parties.
Be Available While Also Providing Space
Everyone vacations a little differently. Some want to visit a new town and immerse themselves in the sights, the people, and do what the locals do, others want to feel anonymous and have an experience that is rooted in solitude. As the manager of a rental property, you must find a way to strike a balance so that you can cater to the needs of any type of renter that comes your way. This is just one of many tips that will make you a better host and encourage repeat business.
In this instance, reviews are going to be your biggest ad strategy. As you build up a roster of previous renters, they will leave reviews that speak to the type of interactions they had with you, which can be a huge deciding factor for future renters. Create an environment that lets your guests feel like they can reach out at any time, but also that you are a ghost if that is their wish. A great way to achieve this is having a welcome packet available inside the space.
An informational package that gives renters suggestions and local tips without them having to reach out to you shows that you care for them to enjoy their stay in this space, and city, but that you are not trying to third wheel their trip. At the very least you should be providing renters with basics like, Wi-Fi passwords, how to use the television and any other electronics in the space, and the rules and timelines for checking in and out.