Airbnb and similar platforms have revolutionized the way people travel, and with the increasing popularity of working remote, people have more freedom than ever before to visit new places. Investors now have a massive opportunity to generate income from the hospitality industry by putting their money into short term rentals (STRs). According to data, there are over 4 million active hosts on Airbnb and over $180 billion in revenue has been generated by hosts (Airbnb, 2023). Whether you're an avid investor seeking to begin offering STRs or a homeowner thinking about renting out your seasonal vacation home, you can capitalize off of this opportunity and generate significant profit. Here are some tips to consider to become successful.

Understand Your Market

   Before investing in any property or jumping to rent out your property, it's essential to understand whether or not the property is located in a viable area that will attract travelers. Location plays a huge role in success, but if you're property is located in a low traffic area, you may be able to offer it as a unique stay or resort experience based on its architecture, amenities, etc. You should consider what amenities are present and what unique appeal your property has that will help it standout from competitors. Look up the nightly rates of your neighbors' properties, particularly those with properties comparable to your own. You need to also learn about local regulations regarding STRs and if they're even permissible.

Invest in High-End, High-Demand Property
   If you want to charge premium rates and avoid low quality guest experiences, you should consider investing into high-end properties. Properties with a range of amenities like a pool and sauna along with plenty of space and gorgeous views are sure to command a higher nightly rate. The more desirable the location, the better too. Real estate in prime locations always do well and always will regardless of market conditions.

Hire a Professional Designer
   Consider hiring with a professional interior designer and stager to really take your property up a notch. Investing in luxurious yet functional design will help to create a hotel-like experience for guests, which will surely get you great reviews and referrals. A professional designer in the STR space understands how to create a beautiful interior while still making sure it makes sense for frequent turnover and possible wear and tear. It's important to work with someone who pays attention to every detail including furniture and lighting placement, fabric choices, and the flow of the property's floor plan.

Offer Premium Amenities
     To be successful investor and standout, it's crucial that you provide premium amenities so that you can justify premium pricing. Guests expect top-notch accommodations when they're spending more, so be sure to provide them. This could include luxury bedding and linens, high-end toiletries, and high-quality kitchen appliances and cookware. You could also consider offering additional services such as event hosting, aircraft or boat rental, and grocery delivery, just to name a few.

Brand Your Property & Market Effectively

     Effective marketing is necessary in order to be successful, and branding your property will help it to standout and attract travelers. You can name your property and/or create a specific theme to create a more unique experience for guests. Also, make sure that you use high-quality photographs and videos to showcase the property's features and amenities. In your marketing, you aren't just offering people a place to stay but also an experience, which they can't get anywhere else.

Run Your STR with a "Hospitality First!" Mindset

     Finally, to truly outshine your competition, you have to operate your STR with a "Hospitality First!" mindset. When people go on vacation, they typically want to feel pampered and catered to. So, that means you should be highly responsive to guest inquiries, show flexibility on check-ins/check-outs and baggage holding, and be an overall accommodating and welcoming host. This will help you build a positive reputation that will inevitably lead to not only increased bookings of your property but return guests too!

Want to work with a team of professionals that can do all of this for you?
Contact Tigertail Property Management. Our team provides comprehensive management and marketing services to ensure client success.
E-mail: [email protected]
Phone: 754-301-6296