These days, few people buy a second home without considering turning it into a vacation rental when they’re not using it. (You can’t be there 365 days of the year, after all.)
Factoring the possibility of rental income into the financial equation can have a profound effect—both on whether you go ahead with the purchase or not and on “how much house” you can afford. Two widely published authors have created a book/CD “seminar-in-a-box” package that will teach anyone how to use the Internet to boost bookings and rental income.
Companion articles on EscapeHomes.com note that placing a listing on the leading online vacation rental property sites is both cheap and effective. And it doesn’t matter whether you want to handle everything yourself or supplement the efforts of your current rental agent. You’ll find the first five tips here.
This article provides marketing and managing suggestions that bring the total number of “Glossbrenner Tips” to 10.
Tip # 6: Get approved to accept credit cards.
Your renters will appreciate the convenience associated with paying by credit card. But you’ll also find that accepting credit cards makes your life much easier. Instead of waiting for rental deposit checks to arrive by mail (and then waiting even longer for them to clear the bank), you can process credit card transactions immediately and see the funds in your checking account within just a few days.
Rentors.org offers a Credit Card Acceptance Program that’s specifically designed for vacation rental owners. All you need is a computer with Internet access—you do not need to rent a special terminal or buy special software—and the application and approval process can be completed in a matter of days. (Rentors.org was created by four of the leading Internet vacation property listing sites. We know from interviewing the principles that they really worked to negotiate a good deal from credit card acceptance providers.)
Tip # 7: Find reliable cleaning and service people—and treat them well!
The key word here is reliable. In a resort/vacation area, “cleaning and service people” are almost as numerous as restaurant waiters and waitresses. But what you need are permanent residents, not a group of kids whose main interest is skiing or pointing up their tans.
You have at least as many options for finding and hiring “help” at your vacation site as you do at your home location. Start by asking other property owners for recommendations. Look into buying services à la carte from local rental agents or property managers. Or consult the Yellow Pages on the theory that any company that can afford a Yellow Pages ad must have something going for it.
It goes without saying that when you find good people, you should treat them well so that your property will be among their top priorities whenever it needs attention.
It might also be a good idea to find a local resident willing to serve as your on-site major domo. This is just the job for a retired person. He or she can keep an eye on your property, make sure the cleaning folks did a good job, and serve as a contact point whenever your guests need a plumber, electrician, or other craftsperson.
Tip # 8: Pick Up the Phone!: Respond promptly to any rental inquiry.
People making vacation plans often call or send e-mail inquiries to multiple property owners. So it’s critical that you check for new phone and e-mail messages several times a day and respond to rental inquiries promptly—by phone, whenever possible.
The most successful vacation rental owners are the ones who aren’t shy about picking up the phone and calling prospective renters—instead of relying exclusively on e-mail.
When you call, take the opportunity to project your personality and to convey the “specialness” of your place. The vacation rental business is not about selling identical hotel rooms. It’s about persuading someone to rent your property instead of another one that may be right down the hall in the same condo complex.
Tip # 9: Join your local Visitors Bureau or Chamber of Commerce.
The quality and vigor of local visitors bureaus, chambers of commerce, and similar organizations vary widely, of course. But member benefits often include supplies of attractive maps and area guidebooks that you can provide to your renters, as well as listings in printed and online directories that will help you spread the word about your property.
Once you’re plugged into your local hospitality industry, you may get all kinds of referrals from people who are holding weddings, family reunions, and other gatherings. You can even help things along by doing a color printout (on bright-white paper) of one of your online listings. With its photos, descriptive text, and rate information, this can become an instant color brochure for your place. Print out a bunch of them and distribute them freely to everyone who is in a position to find lodging for wedding guests.
Tip #10: Remember: You’re a host, not a landlord.
It’s absolutely essential that you document reservation details, payment requirements, check-in and check-out procedures, pet and smoking policies, and so forth. Establish relationships with a good CPA and real estate lawyer who can help to ensure that you’re in compliance with all the various rules and regulations governing vacation rentals.
By all means, ask the experts to review your rental forms and procedures. But try to avoid overly complex legal jargon of the sort typically found in long-term lease agreements. Make all of your written communications and phone conversations with prospective renters friendly and upbeat.
Think of yourself as a host, not a landlord. By the time your renters check in, they’ll view themselves as “guests” in your wonderful vacation home, and they’ll treat the place accordingly.
______________________________________________________________________________
About the Authors. Alfred and Emily Glossbrenner are the authors of over 60 books on home buying, personal finance, the Internet, and other topics. Their most recent book is How to Make Your Vacation Property Work for You!: The Quick & Easy Guide to Advertising, Renting, Managing, and Making Money from your Second Home (FireCrystal, 2004). Designed as a complete “seminar-in-a-box,” this 320-page book/CD package shows you how to create listings that really SELL on the leading vacation rental advertising sites. It also includes tips and techniques for managing your property, a CD with sample forms and checklists that you can customize as you see fit, and a variety of money-saving offers. For more information and to order a copy, visit Fully Booked Rentals.
Click here to order your copy using Amazon.com