How To Find (And Retain) Vacation Rental Property Tenants
By Paul Esajian on August 7, 2017
A well-placed vacation rental can completely change your real estate portfolio. These properties usually come with a high price tag but they can also yield exceptional returns. The income generated from peak rental season is usually enough to carry the property throughout the rest of the year. As high as the potential upside can be these properties are also filled with intense competition. It is not enough to have a property near the beach or close to a ski resort. You need to find ways to constantly attract tenants that hopefully become repeat customers. With other options out there if you drop the ball they will surely look elsewhere next year. On the flip side, if you take care of your tenants they will keep coming back and you most of your work with the property will be done months in advance. Here are four tips to help you find and retain good vacation rental tenants.
- Online Marketing. There has been a gradual shift in the way people find real estate. Gone are the days of opening up a Sunday newspaper and reading the real estate section. While local newspapers still hold value in some markets a majority of prospective tenants begin their property search online. It is essential that you work with a real estate agent or have your own methods of attractive tenants through the internet. Your website needs to be specific to the area and as narrow as possible. Once you secure a website you need to spend time, and possibly money, to make sure your listing stands out. Pictures are nice but videos are even better. Your tenants may have some idea of the area but they want to know everything about the property they are renting. Since the property may be hours away the more information you can provide the easier it is for them to decide. Your listing should mirror that of local hotels in that you need to describe how far you are from major landmarks and every possible amenity offered. The internet should be responsible for driving a majority of the interest to generate.
- Simple application and payment. You want to make it as easy as possible for your prospective tenants. Your website should not only work on driving traffic but also be a one stop shop for payments and applications. You don’t want your tenant to have to print out an application, fill it out and send it back. Even if they love the property they may not want to do all those steps. By automating the application they can have it completed without getting up in a matter of just a few minutes. You can get their info in real time and make your decision by the end of the day. If there is mutual interest the next step is to secure a security deposit. Just like with the application you want to make this a simple process for the tenant. There should be a handful of online payment options available that can make them feel at ease. If they have to go to their car to get their credit or debit card they may change their mind. The easier you can make the process the more likely they will rent your property.
- Presentation. Vacation rentals are run differently than your traditional yearly rental. With a vacation rental, there is much more turnover you need to be ready for. Your tenants are paying a premium to stay for a week and they want the property to be perfect. It is critical that you find a local cleaning service that can quickly clean the property every week. In peak season, there may only be a small window to turn the property over before the next tenants enter. This means having everything lined up months in advance. If you cannot make it to the property for the new lease you need to have your cleaning team focus on little things such as smells, linens, shower liners and toilets. How the property looks is the first impression they have and what may keep them coming back year after year.
- Miscellaneous amenities. Unless your property is in a prime location you need to do the little things to keep your tenants coming back. Fortunately, there are several things you can do that can separate your property from the pack. Start by thinking like a tenant. In this day and age electronics rule and are essential. Look at getting the fastest Wi-Fi you can for the area. You should also spend a few bucks on a nice TV and living area. Families may not spend much time in the house but the time they do spend they want to be enjoyable. You can also supply your tenants with various local menus and a map of local attractions. If the house is in a ski type area you should have a few space heaters if it is near a beach have AC’s or fans. You want the rental to feel as much like home as possible. Filling the medicine cabinet with Band-Aids and Neosporin can be just the little things that can do this.
Vacations rentals are big risk but can also be big reward. Your goal should be to find as many repeat customers as possible. If you can reduce tenant turnover your work with the property is minimized.