The most frequent questions we get from our readers are: “How much will I earn by renting my holiday home? Or “How much should I charge guests to rent my holiday home? Although it will be difficult for someone other than the owner to decide how much to charge guests, nevertheless in this article I will underline the factors that affects how much you can possibly earn from your holiday home rental business.
First of all the location: The location of your property will have a direct bearing on how much you will earn. If it is in a touristy place which sees a lot of tourists/ travelers, chances are you will be able to earn more. However if your property though located in a non-touristy place, but is unique in its own way, you can see a lot of guests too. For instance, if your property is a heritage home, there is always a chance of attracting more guests.
Tourist season: If the peak season is longer than the off-season period than you stand to earn more than properties that are located in areas which have a longer off-season period and just a couple of months that see tourist inflow. So if you decide to buy a holiday home make sure you have taken into account the tourist season.
Competition: How many hotels, holiday homes or any other accommodations are there in your locality? If there are more accommodations than the No. of travelers visiting the area, then you will need to intelligently market your property to ensure that your property appears on all mediums via which travelers would be searching for accommodations in the area. Because almost all travelers would be searching online, here are some top tips to ensure that your holiday home appears on top of the search results.
Amenities/ facilities: It goes without saying that how much you will be earning from your holiday home will invariably depend on the amenities or facilities you have or are offering in your holiday home to compel travelers to book your property. For instance, if you are going to have some luxurious items like, a swimming pool, Jacuzzi, a pool table, etc. you can charge a considerably higher tariff and thus earn more.
Pricing: Obviously, the rental you will be charging guests will directly affect the number of guests you will get. However just keep your rentals higher than your competitors do not mean that you will earn more. You will need to justify your rates. As the owner of a holiday home, you will need to understand the fact that any traveler will compare your rates with those of others in the same locality. So if they feel that you are overpriced or underpriced they will ignore you thinking that there is something wrong in the property. If you are not sure how to set your rental, read our article on how to set your rental rates.
Marketing techniques: A certain level of involvement is required to run your holiday home effectively, a fact you will certainly agree. Merely having a website of your property or listing in a holiday home rental website is nowhere enough. Since almost all travelers search and book accommodations online, having a good amount of online presence is imperative to the success of your business. How you write about your property, the images you upload, how you reply or how quickly you respond to traveler inquiries will be primary determinants on how much you will be earning from your holiday home. So before you decide on a property which you will be converting into a holiday home, make sure you are clear about how much time you will be able to put in to oversee its marketing and operations – not very demanding, but still can’t do without!
Property type: Ideally travelers like to stay in a holiday home when they are assured of privacy. So a villa or a semi-detached codo will see more bookings and subsequently more earnings than an apartment in a residential complex. Another aspect a traveler gives more importance to is security. So a villa inside a gated community has more chances of earning more than a stand-alone villa.