While there’s something to be said of experienced homeowners who have learned the business from first-hand experience, vacation rental analytical tools can certainly help make even more of your investment.
Professional managers currently only own 40% of the market share; however, PhoCusWright reports that vacation rental management companies (VRMCs) are outperforming self-managing homeowners: “Online sales are still occurring almost entirely within the VRMC segment, where nearly one in five VRMC rental dollars is booked on a VRMC website, and nearly 30% of VRMC revenue is booked through an intermediary.” While this is in part due to a vacation rental management company's ability to provide a professionally crafted vacation rental experience, many professional managers likewise benefit from tools that allow them to easily analyze and adapt to specific markets.
Proprietary technology enables many management companies to outperform competition, and now, that technology is likewise available to self-managing homeowners. Professional analyses of the market, like Airdna, provide consulting services and facilitate:
- Optimized listings
- Rental performance comparisons
- Dynamic pricing according to local demand
- Targeted real estate investments
1. Optimized listings
Airdna’s technology provides analytics to ensure you’re making the most of your listing. While vetting guests manually can be reassuring, would enabling instant bookings significantly drive more bookings? What additional fees should you be charging to make the most of your listing? Using data to optimize listings can likewise help determine the ideal minimum stay requirements you should have. With high minimum stays, you may be thwarting guests looking to stay short term, but with low minimum stays, you could be giving up valuable dates if guests are looking to stay longer.
Image Courtesy of Airdna
2. Rental performance comparisons
Do you know what percentage of your views have converted to bookings, and how does that compare with other rental options in your area?
3. Dynamic pricing according to local demand
For out-of-state homeowners, it can be difficult to keep track of the various festivals, sports events, and miscellaneous local events that impact vacation rental demand. Stay on top of all local happenings and adjust your prices accordingly with a data and analytics provider.
Image Courtesy of Airdna
4. Targeted real estate investments
When investing in a vacation rental, verify your approximate return on investment with more accurate data. Savvy investors use tools like this one to calculate how much profit they can generate within a year by doing short-term rentals. Even better, you could always guarantee that yearly income with a net income offer from us here at Rented.com.