How to Target Vacation Rental Investors
5 Essential Tips for Realtors
Did you know that vacation rental investors are the fastest growing home buyer segment in the real estate market today? Vacation rentals are forecast to grow at over 35% in the next 5 years. Savvy realtors know to fully embrace this strong growth market segment. You can sell more real estate by catering to successful investors who are capitalizing on the fact that short-term rental rates have never been higher. That and the selection of vacation rental properties available for short-term rental has never been wider. |
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Let's face it- the "sharing" economy is going strong. These compelling macro-trends provide substantial opportunity for savvy realtors to outflank their competition and close more sales - the right sales from investors who want to get down to business and build-out their real estate portfolios now.
We've compiled 5 insightful tips that accomplished realtors can use to cater to successful vacation rental investors. Let's count down the tips from #5 to #1:
Tip #5 – Highlight Superior Rental Income
Our first tip to help you build credibility with and cater to vacation rental investors is to be sure and highlight the superior rental income available. You probably already know that short-term vacation rental income often substantially exceeds long-term annual rental income. Do you know how much? 200% or 300% more income is not uncommon.
Just ask Thomas and Diane W. of San Marco, Florida. They own a nice 3 bedroom, 3 bath ranch-style home right on newly renovated Mackle Park on the Island of San Marco, Florida. It was so easy for them to get long-term rentals. Given the location on the park, they just posted a sign in the front yard and the phone rang and rang. They signed up an annual renter for $1,350 per month. This tenant loved the place and stayed put for 8 years without a rent increase.
Until… rent payments started coming late and under paid. After a few months of tolerating late payments and shortfalls, they decided to make a change.
Tom & Diane contacted Plus+ Vacation Rental. Short-term vacation rental income for their family-friendly home on the park comes in at $80,137 per year. Wow! That’s an annual increase of $63,937.
Any regrets? Yes. Tom & Diane are kicking themselves for not researching short-term rental market rates and contacting Plus+ Vacation Rental sooner. This is some serious coin left on the table! They’re thrilled to have their property managed stress-free, go golfing, and enjoy such a substantial lifestyle enhancing revenue increase.
You can read more compelling Case Studies here.
We've compiled 5 insightful tips that accomplished realtors can use to cater to successful vacation rental investors. Let's count down the tips from #5 to #1:
Tip #5 – Highlight Superior Rental Income
Our first tip to help you build credibility with and cater to vacation rental investors is to be sure and highlight the superior rental income available. You probably already know that short-term vacation rental income often substantially exceeds long-term annual rental income. Do you know how much? 200% or 300% more income is not uncommon.
Just ask Thomas and Diane W. of San Marco, Florida. They own a nice 3 bedroom, 3 bath ranch-style home right on newly renovated Mackle Park on the Island of San Marco, Florida. It was so easy for them to get long-term rentals. Given the location on the park, they just posted a sign in the front yard and the phone rang and rang. They signed up an annual renter for $1,350 per month. This tenant loved the place and stayed put for 8 years without a rent increase.
Until… rent payments started coming late and under paid. After a few months of tolerating late payments and shortfalls, they decided to make a change.
Tom & Diane contacted Plus+ Vacation Rental. Short-term vacation rental income for their family-friendly home on the park comes in at $80,137 per year. Wow! That’s an annual increase of $63,937.
Any regrets? Yes. Tom & Diane are kicking themselves for not researching short-term rental market rates and contacting Plus+ Vacation Rental sooner. This is some serious coin left on the table! They’re thrilled to have their property managed stress-free, go golfing, and enjoy such a substantial lifestyle enhancing revenue increase.
You can read more compelling Case Studies here.
Tip #4 - Debunk the Damage Myth
The statistics are clear. Short-term renters are less likely to cause substantial damage to a property than long-term renters. There are several logical reasons for this. First, when a traveling guest books a vacation home on AirBNB, VRBO, or others, the guest is putting-up a damage deposit (typically around $500 or more). As such, the traveler has "skin in the game" and knows there is immediate recourse should any substantial damage occur. The booking sites also offer damage insurance which is paid for by the traveler as a surplus charge. In addition, the leading booking sites also offer a $1,000,000 liability insurance policy that automatically covers listed properties. |
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Second, short-term renters are paying more for the same property given the length of stay. As such, their incomes are typically higher and their primary goals are to relax, enjoy their family vacation and take care of the place. The same cannot always be said for annual renters. Sure, there are always a few bad apples in any bunch, yet the statistics are more favorable for short-term rentals than most people realize.
In fact, industry-wide statistics indicate that less than 0.0005% of short-term rental bookings incur a substantial damage issue.
So be sure and communicate with your prospective clients that substantial short-term rental damage issues are far more myth than otherwise believed.
In fact, industry-wide statistics indicate that less than 0.0005% of short-term rental bookings incur a substantial damage issue.
So be sure and communicate with your prospective clients that substantial short-term rental damage issues are far more myth than otherwise believed.
Tip #3 - Use the Income Calculator
The team at Plus+ Vacation Rental and others offer free tools you can use to determine the estimated short-term rental income that is likely for a particular property. Some income calculators use historical data based on many years of past short-term rental data from leading booking sites. Others can leverage the listing site calendars of particular properties in certain neighborhoods to get a reasonably accurate idea of price trends throughout the year. A number of factors go into these calculations including seasonality, vacancy rates, school schedules, local events, etc. You can use these free tools to build your credibility and position yourself as an expert with this valuable knowledge. So use the Income Calculator to let your prospects know how much short-term rental income they can reasonably expect from an investment property they may be considering for purchase. Tip #2 - Communicate the Cap Rate |
![]() Find out what annual revenue to expect from your vacation rental property.
Enter your property's address and basic accommodation information above. We'll let you know how much short-term rental revenue you can expect each year based on like-property comparables, seasonality, vacancy rates, rental listing site calendars and pricing analysis. |
In the world of vacation rental properties, maximizing your cap rate is the way to truly boost your profitability. First things first: How do you define your cap rate? The process is fairly straightforward and you can usually do this yourself with a little bit of know-how.
The cap rate, or capitalization rate, is the comparison of the net operating income (revenue minus expenses) to property asset value. For example: if you are earning $100,000 per year for your home, and your home is valued at a cool million, the rate would be 10%.
In the world of vacation home rentals, earning a profit is the name of the game for investors. You will need to keep your cap rate in mind and do what you can to always drive this rate higher. This can directly lead to getting the best ROI.
Generally, your cap rate can be anything between 4% and 10%. A goal should always be to increase your cap rate as much as possible. With this in mind, you can earn higher incomes across the board and ensure your vacation property investment is maximizing its value.
Be sure you are crunching the numbers and are up to speed with the cap rate of your vacation rental property. Have a clear understanding of the annual return on your investment. Cap rates are important, as they not only provide an accurate understanding of operating costs, but also provide a clear opportunity for investors to check that a property investment is working and bringing in adequate ROI.
Tip #1 - Partner with a Premium Rental Manager
Your real estate business is synergistic with our property management business. It makes sense to partner together.
At Plus+ Vacation Rental, we regularly get requests from successful vacation rental property owners who are looking to buy another investment property. They ask us which areas of the country are best and who to work with. We provide such leads to realtors in our Partner Program. It's free to join so sign up today!
The cap rate, or capitalization rate, is the comparison of the net operating income (revenue minus expenses) to property asset value. For example: if you are earning $100,000 per year for your home, and your home is valued at a cool million, the rate would be 10%.
In the world of vacation home rentals, earning a profit is the name of the game for investors. You will need to keep your cap rate in mind and do what you can to always drive this rate higher. This can directly lead to getting the best ROI.
Generally, your cap rate can be anything between 4% and 10%. A goal should always be to increase your cap rate as much as possible. With this in mind, you can earn higher incomes across the board and ensure your vacation property investment is maximizing its value.
Be sure you are crunching the numbers and are up to speed with the cap rate of your vacation rental property. Have a clear understanding of the annual return on your investment. Cap rates are important, as they not only provide an accurate understanding of operating costs, but also provide a clear opportunity for investors to check that a property investment is working and bringing in adequate ROI.
Tip #1 - Partner with a Premium Rental Manager
Your real estate business is synergistic with our property management business. It makes sense to partner together.
At Plus+ Vacation Rental, we regularly get requests from successful vacation rental property owners who are looking to buy another investment property. They ask us which areas of the country are best and who to work with. We provide such leads to realtors in our Partner Program. It's free to join so sign up today!
At Plus+ Vacation Rental, our full-service property management program is focused on more bookings, more income, and quality guests. We make renting out your vacation rental home simple. We do the work and you get more booking income, driving your ROI and boosting your cap rate.
Are you ready to ensure your vacation rental listing is profitable and brings in maximum returns? Reach out today and let Plus+ Vacation Rental manage your inquiries and increase your bookings. We offer a premium property management service at a price that is lower than traditional property managers. |
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We can also manage all review requests for you and increase your stellar reviews, ensuring that you get the 5-star feedback that will drive new bookings to your door. Find out more about how Plus+ Vacation Rental works here.
Are you looking to bring in additional quality bookings for your vacation rental and boost ROI for your vacation rental? We do so much more to market, promote and manage your vacation rental. Get more income with help from Plus+ Vacation Rental.
Are you looking to bring in additional quality bookings for your vacation rental and boost ROI for your vacation rental? We do so much more to market, promote and manage your vacation rental. Get more income with help from Plus+ Vacation Rental.