STEP 3:
MANAGEMENT
3a. Obtain STR Permit
During the purchase phase, we assessed the feasibility of obtaining a short-term rental permit and complying with local tax requirements.
Research reputable property management companies familiar with local regulations and ask questions as soon as possible. Note that you will likely need to renew the permit annually, which may incur a cost. Ensure the home meets fire, evacuation, noise, and town planning regulations before applying, as a town inspection may be required.
Be aware that some municipalities now require short-term rental permits to be for owner-occupied or primary residences. Click Here for additional information and a link to our partners.
3b. Quality Marketing
To maximize your property’s appeal, it’s crucial to define a specific target audience based on demographics, budget, and lifestyle preferences. Each property attracts a different demographic depending on its unique features and location. For instance, a ski cabin might appeal to mid to high-income families interested in winter sports, while a luxurious riverside property will draw in high-income guests who prioritize upscale experiences. Your target audience should reflect the property’s price range and amenities, ensuring marketing efforts reach guests who will appreciate and afford the experience you offer. By understanding this, you can tailor your marketing approach, from high-quality photography to specialized advertising, making your property more attractive to the right guests.
Hire a top-notch photographer for artistic, detailed photos that fully showcase your space. Advertise exclusively on Airbnb and VRBO, and create a social media account to attract guests. These platforms dominate the market, so build strong profiles to appeal to your audience. Use social media to drive traffic to your booking sites and consider making an area guide to provide a unique brand for your property. Click here to connect with our high quality marketing team and see an example area guide.
3c. Maximize Profit
Your profit depends on the value of your offer. A more valuable offer attracts more demand, leading to higher occupancy and the ability to raise prices. With a strong offer and effective advertising, focus on setting a price that maintains high occupancy, as this generally yields better revenue than pricing too high and facing low occupancy. Competitive pricing is crucial for converting leads into bookings! Click here to learn more about our recommended pricing tool.
3d. Quality Guest Services
We abide by the old saying that "communication is key.”
Respond quickly, politely, and directly to guests' pre-booking inquiries. That’s how you convert leads to bookings. After booking, provide all necessary information clearly and concisely. Use the Airbnb app to send automated messages: one week before, the day before, the day of, and the day after check-in, as well as a review request the day after check-out.
Prompt reviews are vital, as Airbnb and VRBO’s algorithms rely heavily on them, especially 5-star reviews. Click here to connect with professionals who have strong processes in place to optimize guest services.
3e. Streamline Property Operations
This phase can be challenging because rental operations rely on both your system and how renters use the home. Renters may use the home in unexpected ways, or no offense, lack standard problem-solving skills. Keep processes simple and be patient while addressing issues as they arise. To minimize unforeseen problems, have a close friend stay for two nights to give honest feedback on the check-in and check-out process.
Seasonal changes are also crucial.
Ensure your home adapts to different seasons by creating checklists and storage solutions for your property manager. Click Here for other helpful hints on property operations.
3f. Streamline Guest Turnover
As your calendar fills up, managing same-day guest turnovers can be challenging. To ensure success, systematize the check-out process, use a linen service, have a reliable cleaning team, and maintain curb appeal and minor repairs. For properties needing landscaping, schedule this between guests to avoid added complications. Click Here to find a helpful host tool for scheduling cleaners and maintenance teams.
3g. Schedule Maintenance & Repairs
Your home is a depreciating asset where every part of the home will eventually need replacing.
To extend the life of equipment (HVAC, electrical, plumbing) and fixtures (deck, furniture, landscaping), schedule regular maintenance and deep cleaning during the slow season. Use the inspector’s estimates from the buying phase to budget for replacements while calculating for inflation around their expected end-of-life.
Click here to view our home recommended maintenance plan.
Have Any Questions?
Feel free to reach out to us if you have any questions about the property management process. Our team is here to assist you every step of the way.