Increase Your Rental Property Revenue Today with These Three Easy Tips
As a short-term rental owner, you’re always looking for ways to increase the profitability of your property. Fortunately, there are several relatively simple strategies you can implement that can have a big impact on your bottom line.
Here are three easy ways to increase the profitability of your short-term rental:
Price Optimization: One of the easiest ways to increase the profitability of your short-term rental is to optimize your pricing strategy. By setting your prices based on demand, you can increase revenue during high demand periods such as holidays and weekends.
Next Step: Go through your calendar and make sure all weekends are priced at least 20% higher than weekdays and that all holidays are priced at least 50% higher than weekdays.
Minimum Stay Settings: Setting minimum stay requirements can help you increase occupancy and avoid orphan days, which can be a significant source of lost revenue. for example: if somebody books a 1 or two night stay starting on Saturday chances are you will not be able to book the proceeding Friday because most people searching for that Friday date will also want to stay Saturday. By requiring a minimum stay of two or three nights, particularly on weekends, you can encourage longer bookings and avoid losing money on short stays that are difficult to fill.
Next Step: Make sure your minimum stay is at least 2 nights and if possible make sure to add rules for longer minimum stays around holidays (for example: if July 4th is on a Tuesday, then you want to make sure the minimum stay is at least 5 days so they have to book the prior or trailing weekend as well, this will save you from having a long weekend split in half by a guest who only wants a short stay.
Split Testing Cover Images: Your listing's cover image is the first thing potential guests see when browsing for short-term rentals. A compelling, eye-catching cover image can lead to more clicks and bookings. By split-testing different cover images, you can optimize your clickthrough rate and boost bookings. Try using images that showcase your property's unique features, such as a pool or a stunning view.
Next Step: share all your images with a couple friends and ask them to choose their favorites, then take those top 3 and try them out as the first image in your listing and see which does best.
Bonus tip: Get professional photography high quality photographs are essential for getting people to click on your listing. Though 2 images may show the same home how they are taken can dramatically impact whether or not people click on your listing. The cost of a photographer will usually be covered by a single extra booking and those photos will work for years increasing your clicks and getting more people to book.
Next Step: go on zillow, find a listing in the area where you love the photos and ask the realtor who they used. Chances are they will be happy to provide a referral.
In conclusion, by optimizing your pricing strategy, setting minimum stay requirements, and split-testing cover images, you can increase occupancy, boost revenue, and take your short-term rental business to the next level.
If you need help implementing these strategies, or with any other aspect of short-term rental management, contact ActiveVRM for expert assistance.