August 4, 2022
5 Trends That Will Make An Impact With Your Vacation Rental Property
5 Trends That Will Make An Impact With Your Vacation Rental Property
As international travel resumes, the vacation rental management industry is expected to receive more activity and move forward on a quicker timeline. To that end, It’s important for vacation rental property managers to develop a strategy to help them anticipate what’s ahead, and respond long before events play out.
As a vacation rental property manager, to avoid lagging behind and missing out on new business opportunities, be mindful of the four trends discussed below as they are most likely to influence vacation rental property management over the next few years.
#1) Increased adoption of technology
These days, renters expect amenities that offer convenience, efficiency, added security, and enhanced comfort. If you haven’t done that already, this is an ideal time to explore smart home features that guests would love.
As the industry becomes increasingly competitive, “smart” technology is at the top of many tenants’ list of needs. By strategically installing smart devices in their rentals, landlords and managers can turn those properties into smart homes. Thus, increasing its value and desirability in the eyes of potential renters. The variety of smart home features available today is almost endless. But there’s no need to go overboard. Some moderately priced options come with features that help to serve a dual purpose – minimize costs while justifying a higher rent.
These kinds of functionalities help in attracting quality tenants; the kind that are environmentally conscious some features that would keep them coming back to your property include:
- Smart thermostats – your renters can program the air conditioning and heating in the house to run less during times when no one is home. Thus, saving on energy and money.
- Add smart locks – these are relatively easy to install and will give renters an added sense of security. You should seriously consider this if your property is located in a particularly isolated area.
- Utilize smart lighting – renters can control their lighting remotely via an app
- Use maintenance software – CMMS software will do the heavy lifting and simplify all the planning, scheduling, and notifications for maintaining the building, all fixtures, and equipment. Definitely use this if the property is a large one or it requires janitorial and maintenance workers to come in at intervals
- Use remotely monitored automated systems – They offer several functionalities. For example, if you can’t be physically present to welcome new guests, they can still receive a pleasant welcome such as an invitingly lit house that is already heated or air-conditioned before they arrive. You can control these systems from wherever you are.
See here for other Short Term Rental Technology must haves that might not be on your radar.
#2) Remote work is here to stay
Initially, with the rise of the Airbnb, people would come in for short visits and leave to resume work. That model has changed significantly. For the first time ever, people are taking their work with them on a global level. Meaning that they can stay much longer, savvy vacation rental property managers can leverage this opportunity. The impact of this trend is so massive that some of the international hotel chains are taking note and making necessary adjustments to attract remote workers..
According to sites like CNN Travel, this trend will continue for a while yet.
Also, , after working from home for months now, many remote workers will be keen on a change of scenery. Your vacation rental offers a perfect solution.
How do you attract more remote workers ?
- Reliable internet connectivity – this is non-negotiable. The work from home trend relies heavily on the availability of adequate internet connectivity. Vacation properties can secure more patronage if they guarantee their guests of reliable connectivity.
- Offer discounts for longer stay.
- Beside the general It’s important to offer a workspace-like setting with desk spaces, ergonomic chairs, and abundant natural light.
#3) Focus on the guest experience
A few years back, vacation property was largely considered as an investment vehicle driven by the need to bring in profit. Now, improving the customer experience is taking precedence.
After traveling over long distances to get to your property, guests expect a customized and seamless experience waiting for them. Renters will disengage and most likely never return if they sense that you’re more interested in their payments than their experiences while staying in your vacation rental.
Guests expect that a high level of thoughtfulness and planning would have been integrated into the entire guest experience, from booking a stay to little details throughout their stay.
Fortunately, this doesn’t have to be complicated. There are several things you can proactively do to smoothen things out for your guests.
Some ways to improve vacation rental guest experience include:
- Communication – keep in touch with them as much as possible even before they arrive (if possible, send them helpful information like weather updates and upcoming events, etc.)
- Eliminate cumbersome and confusing booking processes.
- Keep a well-maintained and clean property with top notch amenities
- Pay attention to details (clean bedsheets and towels, provide a few toiletries, etc)
Take care of these aspects of your business to ensure that your guests enjoy the expected five-star experience:
#4) Google’s travel meta search
When planning a trip, travelers can spend considerable time and effort on multiple sites searching for airline tickets, suitable accommodation and other crucial information. To help address this challenge, Google provides a platform for users to access multiple travel services at once known as Google Travel, this search tool benefits not only online users but related services in the travel industry such as providers of accommodation (e.g. vacation home rentals). Potential travelers can find flights, book accommodation, and get information about tourist attractions, upcoming events, and other essential information.
How to leverage the google travel tool:
- By improving your website’s SEO ranking, you could Improve your online visibility to travelers. This will help to increase traffic for your website and grow your direct bookings.
We can’t emphasize enough how much this could become a potential game changer for vacation rental managers that know how to maximize this opportunity. The potential benefits are even greater when combined with these strategies for driving direct bookings.
#5) Use dynamic pricing to stay competitive in the market
For the vacation rental industry, dynamic pricing represents an understanding of two ideas that can make or break a vacation rental revenue strategy.
1.Dynamic pricing accounts for changes in the market.
Firstly, as is the case across the hospitality landscape, demand has an ongoing fluidity, can run dry, or grow exponentially. There’s the expected increase and decrease depending on the market’s peak season and slow season. But there are also the little up-ticks in demand based on holiday travel or a local event. But we also see unexpected turns in demand that can give even seasoned vacation rental managers whiplash.
2. Dynamic pricing uses data to adjust rates based on hundreds of factors, large and small, to keep your prices competitive and your properties booked.
The pricing model alternatives can be to set flat rates, use a couple of seasons, or multiple seasons throughout the year. As you can see here, the ADR for dynamically priced listing, this one in the FL Panhandle, is significantly higher using dynamic pricing.
Read this article to learn in more detail about dynamic pricing.
Vacation rental property management is unique. Although it has some similarities with regular property rental management, vacation rental requires a lot of time spent on guest communication and marketing of properties, far more than traditional property management. That said, this industry is changing in view of recent trends like the ones discussed above. Vacation rental managers that want to thrive will need to check where they are falling short. Then take decisive steps to maintain and even reinvent their business.
Author: Bryan Christiansen, the founder and CEO of Limble CMMS. Limble is a modern, easy-to-use mobile CMMS software that takes the stress and chaos out of maintenance by helping managers organize, automate, and streamline their maintenance operations.