Starting a Vacation Rental Business: A Step-By-Step Guide

If you’ve been thinking about starting a vacation rental business, it’s never been a better time to do so. Global News Wire reports that the industry is expected to grow to $11.3 trillion net worth in the next ten years. Confused about where to start? Property in Santa Cruz shares a step-by-step guide to running a vacation rental below!

Do Your Homework

There’s a lot to think about when you invest in real estate. Here are some key factors you need to research before launching your business.

• Pricing and demand: Research what similar properties in your preferred area are charging and the kind of vacation home that is preferred to maximize your chances of beating the competition.
• Business model: From sole ownership and property management to arbitrage or working with a subcontractor - pick the right business model for your needs.
• Business plan: A solid business plan will include your USP, target audience, opportunities for growth, and critical selling strategies.

Factor in Your Costs

Running a rental can be pricey, so you’ll need a clear idea of incoming and outgoing expenses.

• Maintenance: Factor in maintenance costs like cleaners, household items, and more. Pro tip: buying in bulk can help offset costs!
• Property management: If you can’t manage your property yourself, include the costs of hiring a rental property manager in your calculations.
• Financial tasks: An easy-to-use bookkeeping system will make it easier to track all the associated expenses and administrative tasks.

Bring It All Together in Marketing

Marketing is the fruition of your previous efforts - the stage where you can finally get your business off the ground!

• Branding: Ensure consistent branding using a custom logo maker online app for professional flair.
• Administrative tasks: Marketing will involve administrative tasks like managing socials, watching ad budgets, and paying for boosting listings on rental property platforms.
• Property listing: Using professionally staged and photographed images with a well-written and creative description will help you stand out in the market.

A short-term rental property that more than pays for itself sounds like a fantastic business proposition. To maximize your chances of a dreamy vacation rental business, be sure to carefully plan through all the steps, so you’re well set up for long-term success!

Ready to start looking? Maybe need a connection in the loan department? Give me a call at any time! I specialize in Santa Cruz real estate and surrounding areas.