You may be passionate about offering your guests an experience that is pleasant and unforgettable, but at the end of the day, your goal is to turn a profit on your holiday rental investment. You want to know that the work you are putting in is amounting to something and that your efforts are not going to waste. This can prove a difficult problem to solve, but following these five steps, you should increase your returns in no time at all.
Improve your listing constantly, taking into account the tips that Airbnb has to offer.
Airbnb may not be entirely transparent about the criteria on which they judge listings and match them to potential guests, but they have put out a ton of information that Airbnb hosts and rental investment owners should find useful. They consider more than 100 different variables between listings, so in order to stay ahead of the curve and find a leg-up on your competition, you need to tweak your listings almost every day – or at least until you are hitting the numbers that you want to hit .
Cut down on the blank spaces in your calendar by booking longer stays.
It may seem obvious that you can generate more revenue by maximizing your bookings, but rather than maximizing the number of bookings, focus on maximizing the overall booking rate from one month to the next. If you can book one guest for an entire month, for instance, then you know that month is out of the way – and it may be worth offering a significant discount to avoid any blank spaces in your calendar. This could also end up saving you and your guests money by reducing the fees that Airbnb charges any time they process a new reservation .
Communicate with your guests after their stays.
One of the most important (if not the most important) factors in Airbnb’s calculations comparing listings to one another is average rating. The closer you are to a 5-star average, the more kindly Airbnb’s algorithm will look up your rental property. To improve your ratings, improve your customer service, staying in touch with your guests after their stays have finished.
Conduct your due diligence on pricing.
If you are undercharging for your property, you can fill up the entire calendar year and fall far short of your overall potential. The only way to know if you are undercharging, of course, is to do some research regarding prices and expectations in your neighborhood, comparing your property to other properties around you. You cannot reasonably expect your guests to ask you to charge them more, right? This is why due diligence is of the utmost importance to earning a premium return on your rental property investment.
First and foremost, give your guests what they want.
In their own ways, your guests will tell you what you need to do to make your rental property perfect. They will offer you feedback – sometimes subtly – that directs you toward the improvements you need to make to turn a good business into a great one. Listen to this feedback carefully, remaining open to any suggestions that your guests make. You are in the service business, after all, and you should feel a strong drive to give your guests what they want.
Following these steps, you may surprise yourself at just how rapidly you can start earning a premium return on your rental property investment – even if you do not currently consider your investment to be a premium rental property.