Vacation Rental Management 3.0
January 9th, 2010How to Increase Your Rental Vacation Income by 25%
This special report was sponsored by iTrip.net
iTrip.net is a leading vacation rental management company on the cutting edge of vacation rental management and strategic marketing. iTripusa.com uses the latest in geo-targeting internet marketing and are known for their ability to increase an owner’s rental income by at least 25%. In fact, iTripusa.com offers a 25% or more net rental income increase guarantee to any owner in the very first year with iTrip.net management in writing.
So, how do you increase your rental vacation income by 25%?
Two words. Outbound Marketing.
One Answer: Vacation Rental Management.
Now is the time to learn about the infinite benefits and convenience that a vacation rental management company can provide to any vacation rental owner. Your vacation rental can become a highly sophisticated, technologically advanced, customer-centric, business management hub, without breaking the bank or your back. This is an invaluable breakthrough for the vacation rental market, especially in today’s economy.
Since the early 1990’s investing in vacation properties was the most lucrative of investments; today is the time to begin seeing a return on that investment, but creative proactively is a must! To discover innovative, industry relevant vehicles that will drive interest to your vacation rental, this informative piece will share such secrets through a proven five-fold strategy.
In this eBook you are going to learn the industry secrets of how to exponentially profit from the many untapped revenue streams online using an assertive outbound marketing strategy. These tactics are absolutely critical to assuring a lucrative rate of return on your vacation rental investment, as it discussed in detail accompanied by practical solutions.
Additionally, you will find a FREE step-by-step consultation compiled by a team of highly qualified online marketing strategists, which will unlock your property’s hidden potential! Get ready to learn how to build an online staging plan that provides the utmost in professionalism and client compliance. As soon as you apply this strategy, you will obtain the collective key that will untangle any gridlock of frozen assets you may have tied up in your vacation rental.
It is no secret that today’s economic environment has the housing industry positioned at somewhat of an impasse. So how does that affect the current vacation rental owner? What rate of return can you expect to see on that investment now? The good news is that in lieu of such a drastic fiscal shift, a generous space in the rental market has been carved out for those who are proactive, open-minded, and innovative. However, the competition is intense, so it will take a great deal of forward progression to increase your rental vacation income by 25%, but when you employ a vacation rental management company, an owner’s personal effort is minimized and the return on your investment is maximized.
Keep in mind, that vacation rental income is poised to increase by 25% since the online client base for rentals by owner is wide and mostly uncharted. It is ripe for those who take initiative and educate themselves about how a vacation rental management company can instantly makeover an entire vacation rental’s appeal from the aesthetic to the Internet. An exponential increase in the rate of occupancy and customer relations is waiting for you through the visibility and viability of an effective, customer-oriented interactive campaign.
What Does the Data Say?
Numbers don’t lie, and according to data research compiled by the distinguished PhoCusWright’s industry intelligence group, the forecast of the U.S, vacation rental is bittersweet. Approximately 21.5 million vacation rentals were confirmed over the last couple of years- half of all of those confirmations were booked through online sourcing, and 64% of those bookings were from word searches or customers researching vacation options online.
PhoCusWright said it this way, “The online vacation rental market is emerging rapidly from the nascent stages of static, “brochure-ware” Web site to a hotbed of activity for vacation rental companies.” However, if you are not to be found on the Internet, or only in a very limited way you are missing out a HUGE change for profit.
Vacation rental owners that are willing to improve and embrace current market demands will be the ones positioned to increase profit growth. The unfortunate fact is that majority of rentals by owner are relying on their own static websites, or “brochure ware” that is hastily becoming a primitive practice. Static sites only allow for your listing to be “found” by happenstance or by giving someone the direct address of your website. Gaining traffic and directing customers to your site by leaving electronic bread crumbs all throughout the Internet will generate the type of up ticks you need to solidify a client base and increase business by the 25%.
A vacation rental management company provides this proverbial bait. After web traffic is generated this company will then catalog all of the emails collected from previous vacationers and they will be used for monthly mailers and updates according to your needs. Static sites without online payment options, interactive components, updated calendars or review modules are nothing but a thin, peeling promotion poster on the infinite wall of online global staging.
Sounds like a lot of work? Employing a vacation rental management company assures that they will handle ALL of the monotonous details with finesse and accuracy making it convenient for you and impressive to the online browsing community.
There is room for those who want to jump in and begin using a vacation rental management company now, since currently only 27% of all rental by owners are taking the initiative to penetrate the colossal online customer base, while there is an ocean of opportunity awaiting. Vacation rental owners are lagging behind in the opportunities that await them, much to the advantage of the hotel and resort market, which has been the leader in the leisure travel market for some time. If vacation rental owners want to make their presence known online they have to acclimate their representation of services to mime those of hotels.
With so many rentals by owner competing for business, you have to make yourself stand out. When the scope is rightly adjusted to include the current front runner, hotels and their highly evolved online booking management systems, you have to ask how do you change your model to be better equipped to compete on a broader level, and to reach more customers? There is no reason why an independent owner can’t utilize the same complexity and savvy as the existing travel industry giants have, it will just take the assistance and professionalism of an outbound marketing company to assist in doing so.
Convenience, content and commercial viability is what some vacation rentals are lacking, and is where the more established companies excel. This can be remedied if rentals by owner can emulate the sophistication of the competition, by implementing a vacation rental management company to provide a highly evolved, intricate web campaign with the customer’s convenience in mind, and your increased profit as the goal.
From a study conducted in early 2009, it was discovered that 50% of those who book vacations online did so through search engines, and 39% of all vacation bookings came through a web site that used vacation rental management software. Without providing a streamlined and expedient system for your customers to use, the dust of the super information highway will be settling over your outmoded online source, and quickly! Those who use vacation rental management companies and list their rental in search engine optimization programs will reap increased occupancy.
As you can see there is an urgent need for rentals by owner to commit themselves to global positioning online. This positioning must provide a pertinent visual viability where customers can easily locate properties and in turn be inspired to determine that they the hidden treasure of the leisure industry. There are common misconceptions surrounding vacation rentals some of which are that they are more expensive, require lengthy minimum stays, and only accommodate or are appropriate for large parties.
To match the cadence of the ever-evolving travel industry, changes need to be made by these owners if they wish to increase their bottom line by 25%. Beginning with the framework, it would be in the best interest for rentals by owner to eradicate the misconceptions immediately beginning with the packaging. All travelers should be welcomed by aesthetic design elements online when they browse your listing, as well as be introduced to interactive components that reveal a high level of industry relevance. Without the key component of a proper property management system, the forward progress that vacation rentals are in position to make will be stunted.
Weiss Market Research suggests that while there is a cooling of buying, renting is at an all time high. Their in-house analyst Michael Larson recently stated, “some cities are recording double digit median increases”. This is good news for vacation rental owners! The key is a sound restructuring of an outdated system so that online bookings will no longer be dominated by corporate brands, but enable small, mid sized and the mom-and-pop operations to also have a thick margin of potential profitability.
The statistics show that vacationers are still traveling even if it is at a lower percentage, “hovering at 60%”. If the pool of potential profit is smaller than in past years that is all the more reason to develop a highly effective strategy to penetrate those untapped markets.
According to an extensive study conducted by a leading market research and industry intelligence company in 2009, it was noted that only 12% of rental bookings were done through Vacation Rental Management Companies (VRMC) online last year, which amounts to 2.8 billion in revenue, as opposed to the rudimentary word of mouth and the “pencil you in” approach. However, the VRMC were responsible for 48% of all those “occupied unit nights.”
The pattern of growth for VRMC is on par for increasing to 22%, an estimated 4.5 billion dollars, by 2010. In general, most rentals by owner do not provide an online service to their existing customers, and therefore make it near impossible for new customers to develop. As the statistics show there is a great deal of revenue to be made in the upcoming year and beyond with the great increase in online bookings. Now is the time for vacation rental owners to familiarize themselves with the extensive benefits of a Vacation Rental Management Company.
Vacation Rental Management Companies have been predominantly used by some of the largest vacation rental companies in existence. This involvement with third party outsourcing is the biggest piece of data that proves Vacation Rental Management Companies can boost ROI because of their meticulous handling of details. Companies such as Home Away, Orbitz, Wyndham, TripAdvisor, VacationRoost.com and Leisure Link have all spent upwards into the hundreds of millions collectively to develop their own online booking services.
This is a bold testament of the importance of a proficient Vacation Rental Management Company and upholds the validity of their continuous results. The mere fact that these commercial Goliath’s are so successful in the online vacation rental industry by investing huge venture capital into online rental management is evidence that there is solid gain to be found in an automated booking system.
However, you don’t need millions of dollars in venture capital to do it! What you need is a Vacation Rental Management Company that offers the utmost in automated refinement for online bookings and is a full-service vacation rental management company. You want to feel confident that you will immediately see more web traffic, hits on your site and occupancy. Once you expose your listing with a proficient Vacation Rental Management Company you will see the miraculous results of how the five steps found in this five-fold strategy revolutionize your vacation rental profit output.
Only time will tell when the housing industry may begin it’s steady climb from rubble to restructuring, but now is the perfect time to develop a plan in getting your vacation rental property occupied.
The Five Fold Outbound Marketing Strategy
This five-fold strategy to increase your overall potential renal income is broken down into five steps. Each of these five steps represents 5% increase in your bottom line. Complete all five steps and you have just raised your rental income by 25%!
1. Develop Sound Online Marketing Campaigns- SEO and Website Traffic
2. Become Financially Viable- Create Accessible and Flexible Revenue Management Strategies
3. Inviting Atmosphere- Theme is Key
4. Keeping Current- The Where, What and When
5. Outsourcing Property Management- Professionalism Equals Profit
This task may seem daunting and unrealistic without the help of outbound marketing, but with the use of a vacation rental management company you can feel at ease since they approach and complete all of the five pieces of strategy for you! This supplies you with utmost advantage in the current leisure market. No hassle, just results!
Step Number One
1. Develop Sound Online Marketing Campaigns- SEO and Website Traffic (Importance of Positive Reviews)
Misconceptions Redefined
According to the 2009 PhoCusWright’s study only 10% of adults have occupied rental properties in the last 10 years. The study equates that there is an obtuse structuring failure to properly categorize online vacation rentals, “The biggest challenge to consumer consideration and booking of vacation rentals is a broad lack of category awareness.”
In addition to a lack of category awareness, one of the leading misconceptions that surround vacation rentals is that they are only suited for the affluent. In a down economy, there needs to be flexibility in pricing and booking to stay on par for communicating value to the money conscious public. In this economic age, a misconception like price has a decreasing pull on the interest that the average customer may have in seeking out rental housing for their next vacation. Potential customers with smaller budgets tend to be gun shy about booking vacation rentals because of assumed price packages. But with proper listing information, a variety of payment options and a visible seasonal pricing calendar this can be rectified.
In an industry that is worth $24 billion dollars, there is an unprecedented potential for growth and profit, even in a time of uncertainty. Practical solutions are needed to help vacation rental property owners book a property consistently. This means developing sound marketing strategies as well as carving out a solid, promotional plan that is relevant as well as innovative. In addition, the rental itself may need to be updated in order to draw the amount of attention it has the potential to attract.
This means making sure that once your property is visible online and ready for the viewing public, your efforts will not be for wont. The majority of rentals that are booked online are done so by 35-55 year old mothers. This means that your rental will not only have to make sense financially for her and the family but she will have to be attracted to the décor, as well as be drawn in by the listing description and images. While location is of course one of the most important factors in gaining interest from potential customers, there is a lot to be said about presentation, updated amenities, and flexibility in terms and booking
By incorporating an all-inclusive consulting company, an independent owner increases the chances of exposure, namely through online avenues, as well as is given full access to specialist advice which increases a visual draw to your vacation rental. A thematic approach to décor enhances the overall vacation experience, which is principal in today’s market.
Search Engine Optimization (SEO)- What is it and How can it Work for Me?
Using a vacation rental management company booking system has not only cracked open the advertising lockbox, but when you use their sources any independent rental of all social and economic status is free to compete fairly and successfully against largely branded, conventional lodging. The good news is that today’s vacationers are seeking out “good deals” through Search Engine Optimization (SEO), in hopes to provide their families with the same quality of vacation’s past without the high price tag.
Utilizing the resources that a vacation rental management company provides guarantees that your rental will be included in this increasingly successful advertising apex.
Search Engine Optimization (SEO) is one of the newest and most reliable ways to make sure that the right clients are looking at your listing. A brief definition for those that may be unfamiliar with SEO is that it “is the process of improving the volume and quality of traffic to a web site from search engines via “natural” (”organic” or “algorithmic”) search results. Typically, the earlier a site appears in the search results list, the more visitors it will receive from the search engine. SEO may target different kinds of search, including image search, local search, and industry-specific vertical search engines.”
Google Ad words is one of the leaders in this growing marketing campaign, but all websites if they are managed properly, can have access to SEO which will enhance clicks and in turn increase revenue. Using a Vacation Rental Management Company to determine what words would be most beneficial to increase your web traffic will begin dotting the worldwide online map with those tagged words, which direct customers to your site.
These little nuggets of descriptive text do wonders to increase the scope of traffic that your listing gets will provide that increased scope. More clicks and mouse traffic means more occupied nights!
A Professional and Interactive Website
The Internet has provided a massive, blank canvas for any Rental By Owner to completely book up their rental through effective and affordable marketing campaigns. The key is to look professional, understand the tools that are available through a vacation rental management company for an independent owner online, and how to create a sound ad campaign which will drive traffic to a specific listing and enable effective communication between owner and customer.
A professional web site design is extremely important when listing your property. When you use the resources that a Vacation Rental Management Company provides your potential customers will get the feeling that they are booking with an established company. This legitimizes your property, gives the vacationer “peace of mind”, which is a huge selling point and provides a great opportunity for the independent owner to compete with the major competition in the same category but without the massive overhead or initial venture investment.
When it comes to presenting your listing online, the photos you post will be the only glimpse that the potential customer has of your rental. This means that you will need to invest in getting the best picture possible of your space. A wide lens camera, with panoramic ability, is the best way to capture a small space, and proper lighting and angling is the best way to enhance the openness of a larger unit. No matter the size of the space, the location or the popularity of your rental in the past- for new online browsers you have to put your best shot first- and this is crucial to competing online.
For some rentals by owner, investing in expensive camera equipment isn’t an option. That’s why using a vacation rental management company for consultation is the perfect way to gain all of the tools you need to show your rental in a sophisticated, alluring way.
Descriptive Text- Packaging your Vacation Rental
In addition to the showmanship of your space the verbiage that you use on your listing is a huge persuading or breaking point. Simply stating that you have a “four-bedroom rental with a city view” will not attract attention. Standing apart, and being unique is the one thing that renters will be looking for. This could be exemplified as, “Embark on your own urban excursion by staying at this metropolis retreat- complete with a spacious family-sized uptown apartment, sweeping views of the cityscape, and a bird’s eye view of the downtown heartbeat.”
When they graze online listings they will be looking for specific buzzwords that will spark their interest. When you list your property with a professional third party outsourcing company you will have assurance that your listing is described in the best possible way.
Pictures are the initial draw for a customer, but if you can entice them even further by describing what little piece of heaven could be theirs, you are visually and mentally closing the deal.
Once a Vacation Rental Management Company has developed a professional listing complete with online website visibility, professional photos, and enticing verbiage that is only two-thirds of the entire online marketing pie. Increasing your online booking potential begins with great pictures and an enticing listing description but simply existing is not going to drive traffic to your site.
Database Optimization
When you use a Vacation Rental Management Company they will put in place a database optimization features, which catalogs and organizes previous customers, which makes remarketing to past clientele a cinch. If you don’t market to previous customers by keeping their information organized and easily accessible, you will be missing out on making a fortune, repeat business is best! An aggressive Vacation Rental Management Company will maximize your database for optimal results.
Step Number Two
2. Become Financially Viable- Create Accessible and Flexible Revenue Management Strategies
Pricing is Key
Pricing is key, so in order to accurately price your rental to be competitive in its respective market you have to take into consideration the local market values. A Vacation Rental Management Company can do the legwork for you. This is a detailed data research venture, in which locale dictates demand, as does the time of year, the number of other available units in your area, and the revenue accrued from comparative units. This inclusive approach to supply versus demand is a great way to make sure the value you perceive your rental to be is in stride with the current market trends, since Vacation Rental Management Companies have access to extensive local market data and will spend the time pulling the information and compiling it for you.
With some rentals by owner the temptation is to dictate the price of your vacation rental based upon terms of emotion, or owner preference. To make sure that you are attractive to customers and turn a profit in the process, you have to be sober in judgment and take in many different factors into the pricing process. The market value for vacation rentals is always fluctuating especially in today’s economy, so to be the most relevant rental in your market it is best determined by facts and market research.
The type of vacation your unit offers is another facet to consider. Beachfront properties and ocean getaways are by far the most popular to own, clinching 22% of the entire rental marketplace. The snow/ski Colorado type trips make up 7% as is California (amusement/points of interest) and the Southern market (Carolinas). Hawaii represents 4% of the popular vacation type. Being aware of how many vacation rentals there are domestically and how they are distributed gives an owner a clear idea of where they fall in the chain of demand, this information would take months to compile, let alone proof, this information is collected for you and will be guaranteed as accurate.
Taking the guesswork out of pricing makes sure that you are primed for due heightened interest dependent upon your demographic. It’s a fair and smart way to price your rental.
If you find yourself in the upper end of the market, or one of the more populated markets, it is advised that you consider lowering rates to increase competitiveness. To rent out your vacation rental twice as much at a lower rate, will produce bigger returns over the course of the season and of course increase occupancy rates. Overall occupied nights is the goal, so exercising flexibility in pricing makes that a reality.
Flexibility equals Profitability
Flexibility in pricing is only one side of the coin. Flexibility in booking terms can also be the edge you need in an increasingly softer market. As leisure travelers tend to save money and stay closer to home there has to be certain compromises made. As mentioned before, one of the biggest misconceptions that consumers have about vacation rentals is the minimum stay policy. On average vacations last anywhere form 3-5 days. However vacation rentals are on average 7 days or more. This is due in part to minimum stay restrictions, but also because travel consumers assume that vacation rentals are only beneficial in long periods of time.
To consider minimizing stay restrictions, will maximize customer interest. Through proper marketing of this option and owner compliance this revenue roadblock can be eliminated, and rental income safeguarded.
Credit Cards
Another issue of convenience is one that is still missing from a large number of rentals and that is the online payment procedure. Accepting credit cards online is a major step in the right direction, and these days is considered old-fashioned if such a service isn’t provided online. In most cases, this is non-existent, especially if the owner handles all the bookings himself. This can get cumbersome and the payment paperwork can outweigh the value of the time booked.
Getting bogged down in the details of payment processing is one of the reasons that many rental owners opt not to provide online payment. Not to mention the outrageous fees that some companies can set upon independent owners.
A Vacation Rental Company handles all of the online accounting through an automated system. No checkbooks to balance, statements to organize or credit card numbers to take over the phone. It is a highly secure system for customers and they can be assured that their identity is safe and well protected. Putting in place an official payment-processing tool in the initial stages will ease the worry of customers, and instill a sense of proficiency and trust.
A Last Minute Asset is Still an Asset
Despite the downturn people still want to plan and experience vacations. However, the difference in today’s market versus years before is that some vacationers are waiting until the last minute to book vacation. This is the case for a myriad of reasons; perhaps because of the uncertainty of the job market, the influx of career changes, the lack of vacation time, or the overarching guarded nature of financial reservation that the media is promoting.
Whatever the case, a successful vacation rental owner must make these last minute decisions a reality for customers. Currently, rental owners still have lengthy contract processes, lengthy fund exchange and deposit methods, and do not have any online payment options. Just having contact information online is considered an inconvenience when there are is the option to use a Vacation Rental Management Company to streamline inquiries and adjust accordingly to the needs of the inquirer.
The social network of communication is transitioning from word of mouth and phone calls to email and online transactions. For the moms, the women aged 35-55 who book the majority of these vacations, there is no time between a job, the kids and after school activities to spend hours communicating with the rental owner or trying to work around the schedule and policies of an antiquated on-site property management group.
Consider accepting credit cards, and allowing a Vacation Rental Management Company to handle the transactions in a professional, convenient and timely manner.
If pricing is key, convenience is the closer.
The Importance of Gaining Good Reviews
Word of mouth is still a huge driving force in booking vacation rentals, but today’s “word of mouth” has been digitalized into online reviews. Online reviews are extremely important in drawing in new business and positively advertising to those who may have never stayed in your unit before. Flipkey, a leading Blog site dedicated to “expanding the the rental vacation market through insight and community”, ran a recent article about “the power of consumer reviews”, this was their finding:
• 71% of online shoppers read reviews making it the most widely read consumers-generated content – Forrester Research
• 82% of those who read reviews say their purchasing decisions have been directly influenced by those reviews – Deloitte & Touche
• Consumer recommendations are the most credible form of advertising among 78% of the 26,486 internet users in 47 markets who responded to a global Nielsen survey – “Word-of-Mouth the Most Powerful Selling Tool”
Escapia stated this about the importance of their property listings and reviews, “Included in the presentation are a number of charts that showed what we have learned about guest reviews after having collected 40,000 reviews. Here are some of the key findings from our data analysis:
1. Guest reviews drive bookings: We’ve always thought they would. But now we can see it in the data. The ratio of bookings to units on ClearStay for units with reviews is 41% higher than for those without reviews. That’s a compelling result that units with reviews get booked more often than those without them.”
To increase occupancy rates, reviews are crucial. However, taking the time to contact customers and encourage them to write reviews, and then post them, while trying to keep track of all of the incoming and upcoming review possibilities can be too much to handle.
Outsourcing this responsibility means that reviews will be gathered for you, and the Vacation Rental Management Company will encourage previous customers and first time visitors to log into your online listing and post their thoughts.
Generating customer feedback is something that requires persistence, savvy, and industrious methods, since most people don’t have the time to leave their thoughts or even more likely just forgot, no matter how great of an experience they had. However, when you use a Vacation Rental Management Company they are great at promoting incentive for clientele to leave feedback, and are experts at organizing, compiling and keeping track of who has posted reviews and who still needs to be contacted.
Also, included in their service is email collection and e-filing, this as an excellent way to follow up with customers. Customers love to be contacted after they have enjoyed their vacation as it establishes a sense of goodwill and personal interest.
Just because you are booking and communicating online through a Vacation Rental Management Company, doesn’t mean that customers will not feel personal attention. They will communicate with each and every one of your customers to generate return business, provide excellent customer service, and promote a healthy dosage of constructive “word of mouth” online.
This is a graph from Flipkey, a web firm that specializes in compiling data specifically for those who want to keep up to date about how the vacation rental industry is fairing as the economy twists and turns itself around the volatile state we find ourselves in. This graph is enlightening as it shows what the deciding factors are that may cause a customer to choose a hotel or Bed and Breakfast versus a vacation rental.
As you can see we have already touched upon how the importance of flexibility in pricing and booking, credit cards and good reviews, but now is the time to talk about the number one concern that renters may have with picking a vacation rental over a hotel or Bed and Breakfast, on site maintenance, as well as the interior concerns of guests. Let’s jump in and find out how you can put your rental property in a class of its own!
Step Number Three
3. Inviting Atmosphere- Theme is Vital, Peace of Mind is the Core Principle of that Vitality
Creating an inviting and professional listing online for your customers that guarantee on-site maintenance, is established online through high quality photos, an interactive video of the interior, and expert descriptive data will evoke peace of mind, and entice customers to browse and book your rental. However, it can’t end there. Once a vacation is booked, follow through is what will be the defining factor between repeat business and a less than stellar reputation.
On-site Maintenance
Offering your clients a 24 hour on-site maintenance for your unit or units through a Vacation Rental Management Company is customer service at it’s finest. Even if your renters prefer to speak with someone directly for on-site maintenance a Vacation Rental Management Company will provide a number they can call at all times to speak with a live person.
In an age of automated voice systems, it is a much-appreciated personal touch when you can offer your customers a live voice and a listening ear whenever and whatever their needs may be. And instead of the owner having to manage incoming calls constantly, most of which are laden with complaints, concerns or questions, this highly qualified group of professional customer service agents will be the buyer liaison and handle all issues accordingly.
Also, when you hire a Vacation Rental Management Company you can promote a “worry free guarantee”, which means that if you outsource your maintenance needs you can assure clients that there will be a maintenance presence available to them all at times. This is a priceless service to offer those customers who are seeking the “peace of mind” and especially those who are tying out a vacation rental for the first time. Those who are used to a concierge and room service will find 24/7 to be a HUGE selling point!
Without using a Vacation Rental Management Company, the owner will have to tackle the sticky problems, non-working appliances or malfunctions that occur within the duration of a renter’s stay. This not only costs the owner a lot of money in repairs if the appliance requires immediate attention, but if your customers have to bill you for the repairs and reimbursement it is unprofessional and bad advertising for your rental.
Whatever the case may be, if the maintenance request is major or minor, vacationers expect to be met with quality amenities, and on-site maintenance is an excellent preemptive move in order to keep your customers happy and your maintenance fees down.
Makeover Must’s
In today’s world of HGTV proliferation and the bombardment of home makeovers, an owner has to take inventory of what they are offering atmospherically, and honestly deduce if it can compare to what is currently desirable in home aesthetics. There is a variety of ways to do this, however it can be a difficult task to complete for owners. First of all, knowing how to appropriately decorate and update your unit isn’t something that is inherently known. This requires research, a great eye, knowledge of the surrounding market competition, and a plan to develop an appropriate theme for the customer.
Secondly, it can be overwhelming to improve your design elements if your unit isn’t anywhere near where you reside year-round, or even more difficult, if is located internationally or on an island. However, if you have a Vacation Rental Management Company handling these details for you, they can begin to help you get your property into the best condition possible with acute insider design suggestions, and the resources to carry out the vision no matter where your vacation rental is located.
Painting is one of the most important thematic elements when revamping your unit for mass appeal. This means NO white walls. Creating a mood within a room, whether that is a spa-like atmosphere, a rich red, or a relaxing yellow the unit needs to be unified in its décor and send a united message to the vacationer. Keep in mind that a theme can be dictated by the locale of the rental. Is it tropical, wintry, or urban sleek? Choose one theme and make it clean and simple, albeit consistent. People want to feel as if they are at a “home away from home” so be sure not to leave hints of your ownership around, even if it is your personal vacation spot as well.
Kaba Locks
When creating an inviting atmosphere and keeping the customer’s convenience in mind, security and access should be factored into the equation. Kaba locks are a highly evolved locking system that allows for remote security, as well as a convenience for those who need to check into a place without having to wonder how they will get the key or check out once the vacation is over, keyless entry is relatively new and an aggressively effective product which increases customer interest.
Their website describes their product this way, “Kaba provides innovative, comprehensive access control solutions for buildings, facilities and sites as well as solutions for staff and enterprise data collection which meet client’s needs for security, organization and convenience. The company is a key expert and technology leader for a range of security solutions.”
Installation and pricing when it comes to Kaba locks can be time consuming, and again if the location of your rental is remote in comparison to a yearlong residence, this security upgrade may be best achieved by outsourcing. When using a Vacation Rental Management Company like iTripusa the models and prices are collected for you as well as the quotes for installation. A Kaba locking system is a great bullet point online, when those potential customers are browsing your listing; keyless entry translates into easy, low-hassle travel.
Having a Kaba Lock says that you are invested in the security of your clients and that you consider their convenience extremely important. The online advertising that you can gain from such impressive security solution is worth the extra mile, and with iTripusa you won’t even have to walk the extra mile you will just have to consider which option best suits your budget and needs.
Any way to enhance that “peace of mind” factor, which may inhibit a vacationer from booking a rental as opposed to a hotel, is worth the investment. When using a Vacation Rental Management Company you have an easy way to achieve such improvements without the stress of research and the time consumption of installation and troubleshooting.
Practical Planning
Here is a list of practical extras that a Vacation Rental Management Company will provide in their services to make sure that every time a new customer checks into your rental they are in awe, and pleasantly surprised by the thoughtfulness that went into the preparation. In all instances it is best to put the customer at ease.
For some reason renting out a home or condominium versus a hotel raises all kinds of concerns. Will there be soap in the bathrooms? Will all appliances be in working order, and if not who do I call?
Beginning with toiletry amenities, make sure that each bathroom is fully stocked with toilet paper, quality soap, shampoo, toothbrushes, and fluffy matching towels. Also if you a management service you can assure your customers that a routine maintenance check on all of the appliances in the home is done periodically to make sure everything is copasetic.
As an owner, there are a few things that you can do in order to increase customer satisfaction and produce those great online reviews!
In the kitchen make sure that there is a full stock of paper towels and napkins, and that there are plenty of utensils, plates and glasses appropriate for the size of the units. To make sure that you have sufficient place settings use this guideline:
1 Bedroom needs 6 place settings
2 Bedroom needs 8 place settings
3 Bedroom needs 8 Place Settings
Step Number Four
4. Keeping Current- The Where, The What and The When
Vacation Rental Management knows what the current market is making available to customers and what they are booking. Based upon their expertise here is a comprised list of how the “where, what and when” that has the power to improve your overall appeal or greatly impair it.
This is a free consultation directly on how to utilize your space efficiently, and how to match what customers expect with what you provide, let’s begin with modern necessities
The Where
We’ve all heard it before: location, location, location. This is perhaps the most important bullet point your vacation rental has in its arsenal. So if there is something that is unique about your vacation rental, a Vacation Rental Management Company would spend quite a bit of time advertising that niche. If there are any resort amenities that your unit or units provide they need to be showcased front and center.
Take a second to run down the list of resort amenities that are provided and take note of any that apply to you. If they don’t keep in mind that others may offer such amenities and it may be in your best interest to look into possible addition or investing where that may be possible. A management source can tell you how valuable each of these are and how they can help to increase your listing traffic:
Desirable Resort/Development Amenities
Pool or Pools, hot tubs
Meeting rooms
Movie Theater or movie room
Exercise room
Covered or Garage parking
Close Proximity to Entertainment
Ski in Ski out
Beach Front
Proximity to Theme Parks (Disney, Six Flags, Sea World, etc)
Proximity to Golf courses
Proximity to Shopping and Restaurants
There is great benefit in presenting your unit as a themed getaway, complete with stocked necessities and an on-site maintenance crew but in addition to overall fixes, there are some specific upgrades and conveniences that you should consider to make your unit the most desirable it can possibly be.
The What
The Internet.
In this information age, wireless Internet is becoming a staple necessary for all those who travel. If someone is in a place they have never been, they may want to go online to check out local restaurant reviews, Mapquest directions to a particular site, or even order pizza. They will want to look up that information online.
Additionally, even though some people may want a chance to get away from it all on their vacation, it is a rare instance that a potential renter won’t want Internet or at least the option to catch up on some work or personal emails while away from home. It is also essential to take into consideration that the younger generation has a lot of social stock in social networking giants like Facebook and Myspace, and to be unplugged from that entirely for the entire span of a vacation. This may not be attractive and can limit your family-friendly appeal.
Keep in mind as well, that while the telephone on a general consensus has been replaced in modern day culture by cell phones, not having one inside the unit could cause a potential riff. Keep in mind that not all cell plans are configured to have service availability in other parts of the country, particularly those places that may be more remote.
Also, taking into consideration that when traveling, people tend to forget things. Forgetting a cell phone may not be as common as forgetting a cell phone charger, but if one or the other happened and there was no telephone this would be a big problem. So make sure that the unit is well equipped with working and current technology.
The Importance of Modernity
The kitchen is the heart of the home, and it is no different on a vacation. The kitchen will be the all-telling piece of the vacation rental puzzle that will sway those mothers who will undoubtedly imagine themselves in it, while pouring a glass of wine or preparing on of their favorite meals. If you want to make your kitchen one that is desirable online there are a few modernity’s that an owner must implement if they wish to reach maximum occupancy in a competitive market. The bathrooms need to be more than just a “wash room”, for most people the bathroom will be looking for a “spa-like” experience.
In the bedrooms, we already discussed how the theme is vital, so make sure that the rooms are vibrant, inviting and on par with the competition. Alongside décor, in-house spacing and number of rooms versus beds is something that has to be taken into consideration. Increasing a “sleeps 4” to a “sleeps 6”, is a benefit, spaciousness will draw more web traffic to your listing.
The family room is where most of the vacation will take place. This is where the games will be played, the movies watched, and the memories made. This space has to be mindful of what any vacationing family may need and make that available. In addition, the family room is where the theme of the entire vacation should be most prominent. If promoting a ski chalet, you would be best served to make the family room the exclamation point of the entire unit’s theme.
Also, if there is some kind of outdoor space to utilize, especially one with a view- such as a patio or deck, make this space inviting and useful. Wasted space is no space at all.
Here are a few examples of how you can perk up all of the spaces in your vacation rental to draw attention from vacationers and will assist your online rental management company in creating the best outbound marketing plan possible. Here is a quick checklist of what is preferred in a unit to make it stand out from the others:
KITCHEN:
• A refrigerator with an ice maker
• A dishwasher
• A standard size microwave
• Appliances should not be over 10 years old
• Stainless steel is preferred and looks best in photos
• If there is a bar area or peninsula there should be no less than a minimum of 3 bar stools
• Update window treatments over kitchen window, in the family room, and other bedrooms. (This needs to be more than just blinds)
• Updated lighting
• Recessed Lights
BATHROOM
• Granite counter tops
• Nice oversized mirrors
• Updated, bright lights
• Updated paint
• Remove any outdated wallpaper
• Have a shell and a shower curtain for all showers
• Tile the bathroom floor if there is vinyl
• Remove any plastic work around the tub and replace with tile
BEDROOMS
• King size bed in the master.
• If 2 bedroom unit, King in master and Queen in other bedroom
• If 3 bedroom unit, King in Master and Queen and Queen in other bedrooms
• If 4 bedroom unit, King, Queen, Queen and bunk or separate twin beds in 4th bedroom
• Current and in theme ceiling fans will be important, especially in the hotter climates.
• Invest in mood lighting next to the beds that match the overall theme and décor of the space.
FAMILY ROOM
• Flat screen TV with DVD and Cable or Satellite Service
• Stereo with CD player
• Couch with pull out sleeper (must match the décor in the unit)
• Coffee table
• Board Games and puzzles
• Dining room table with modern overhead lighting
PATIO
• Updated patio furniture, all in working order (minimum of small table and 2 chairs, 4 chairs is nice)
Photo Examples:
Don’t: Do:
The When
Dennis Rooney from the New York Times wrote this in a July 2008 article about vacation rental owners turned renters in the panhandle, “As South Florida experienced a huge rise in values of all kinds of housing, from roughly 2000 to 2005, it became a speculators’ market. And those speculators are now eager to get the highest possible rental receipts, since they are planning to hold on to their properties only until the market rebounds and they can make a profit.”
This is an excellent observation, and a great blueprint for owners who need to increase their rate of return on a vacation rental investment, and in double time.
Florida has the most vacation rentals in the nation, making up 22% of the entire rental housing market, making it a hard market to infiltrate if you are just relying on static websites and word of mouth. It was also cited by the US News in mid 2008, that Florida has the highest number of cited foreclosures in the entire nation. This is a grave picture of supply and demand for those vacation rental owners who are located in the state of Florida.
However, Florida isn’t the only rental housing market that is in utter need of outbound marketing, Rooney went on to later say in his article that “The ski areas in New England and Colorado, (have) more than a few owners trying a similar approach, staying in the mountains in the summer — they’re just as beautiful without snow — and leaving the skiing to their high-paying tenants in the winter.”
It is a thinly strung crosshatch of supply and demand. The When you make your unit available will greatly affect occupancy, and customer compliance. A rental by owner can gain the priceless benefit of outsourcing property management by employing a third party service to handle all of the details that go into scheduling and managing a successful vacation rental.
The When will be addressed successfully by iTripusa, without the sacrifice of owner enjoyment, however personal flexibility is highly encouraged when it comes to seasonal vacation owners and their personal time spent at the rental.
Step Number Five
5. Outsourcing Property Management- Professionalism Equals Profit
Outbound Marketing Overview
If you are not using outbound marketing through a vacation rental management company, you can be assured that your current clientele roster and website traffic will remain stagnant. In the competitive stage if today’s’ market you cannot expect to produce any more return than you have in past years, unless action is taken.
That is based upon the mere fact that we are in an economic crisis as a country. With the economic temperature of the real estate market, there is a dire situation awaiting those who are trying to pay two mortgages, one for their year round residence, and one for their vacation rental. Higher occupancy and maximized exposure it the best way to keep those personal investments in the black, especially for those who are teetering on the edge.
iTrip will handle the details that pay the dividends. These details that they take care of include the creation and infiltration of a gainful online presence, effective customer screening, timely bookings with a flexible online calendar, efficient and flexible payment plans complete with an online purchase program. These minutiae can be the driving force between getting left behind in the lull of the downturn versus being actively a part of pulse in the heart of the rental boom.
This doesn’t mean that you have to sacrifice the enjoyment of your vacation rental just because the economy is tight. But it does mean that if you utilize outbound marketing you can enjoy your vacation rentals even more, because the stress and worry of making ends meet will be lifted off your shoulders completely. Imagine not having to worry about handling all of your own advertising, bookings, rental purchasing and receipts. All the while your vacation rental is paying for itself with little or no effort on your part!
The truth is that most people who invest in vacation rentals do so for personal reasons. They want a second home; they want a romantic get away, or a place to take the kids, or the grandchildren. When anyone embarks upon a second home purchase they have high hopes that the investment will increase in value as is determined by the current real estate market value. And in hindsight, the unexpected happened, the real estate bubble popped.
While there were hundreds of excellent reasons to invest in a property previously, people in this economy are pulling back on the buying, which is resulting in a freeze. For those of you who have already bought, you have a huge pool of customers who still want to take the grandkids to the beach, but can’t afford to purchase one of their one.
This is a sigh of relief for those who are seeing the bills add up while the value of the dollar and real estate going down. An indicial tourniquet needs to be put firmly in place, and fast! For those that may be seeing dollars seeping out from under the bottom line, the good news is that there are customers waiting to help you pay your vacation home mortgage, but what you may not have are the sources to market to them.
One of the biggest complaints the vacation rental owners have about using a vacation rental management company is that they want to be able to screen what type of clients use their rental. This is yet another facet of interest that a rental owner would have in investing in a vacation rental property management company. Their client screening process if a great tool for the customer and the rental owner to make sure that everyone is comfortable with the vacation arrangements.
If there are certain things that a vacation rental owner needs a customer to be aware of, outsourcing a third party lowers the risk of strained customer relations. If there are no dogs allowed on the premises, or only in certain areas these details will be handled accordingly. Their services will make sure that the potential vacationers are informed and aware of set limitations. Likewise, if you prefer to have no children in your rental, or a family member has allergies to certain elements, or even instructions on how to use the pool or hot tub- these things will be detailed and relayed to customers to make sure that the owner and the vacation renter understand and are comfortable with the arrangement.
Not only does outsourcing to a third party help with the handling of a thousand important details, but it also keeps the organization of specifications per unit in order for the owner and the customer. This projects a certified professionalism that is more likely to be adhered to and puts you in a place of control without having to handle discrepancies with the customers directly.
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The Five-Fold Strategy Works- But You Don’t Have to!
As you can see, increasing your vacation rental income by 25% requires a lot of groundwork, Internet savvy, capital investment, and long hours.
• Trying to develop your own outbound marketing plan through online marketing campaigns, Search Engine Optimization, customer review generation, and developing an attractive and interactive website requires extensive knowledge of market trends and cutting edge technology.
• Making an online payment processing plan available online through credit cards, and uploading a rate and availability calendar directly to your site, requires constant maintenance and software know-how.
• Developing a theme within your vacation rental or within a string of them if you own more than one is a detailed, industry driven fixation, which requires skill and constant research.
• Knowing what needs to be fixed, updated, painted, or modulated in order to increase profit potential is a long process of inventory and manpower, which can be an off-putting process not to mention pricey, and for some who are in a different part of the country, unrealistic.
• Keeping current with The Where, The What, and The When of the competition, by understanding and applying how that affects your bottom-line by operating mimicking those units that are successful in your area with price and presentation requires extensive time and market discernment and what market values are indicial of your locale requires a third party perspective and accessibility to inside information and online investigation.
Using a Vacation Rental Management Company takes the guesswork, groundwork, hassle, and inconvenience out of managing your vacation rental. Allow them to take over the details and assume the huge responsibility of keeping your rental current, classy and occupied.
Hire a Vacation Rental Management Company today and increase your rental income by 25% using this highly effective five-fold outbound marketing strategy!
Contact: info@itrip.net