What are vacation rentals?
Time to talk a little about what exactly vacation rentals are. Throughout the world, there are all kinds of areas known as tourist destinations, the most popular happen to be coastal cities and towns in exotic locations.
While they are destinations for others, you have the indigenous population that lives there year-round.
When these people go on trips, they often make their homes, furnished apartments, and villas available for people to use for short-term usage. This phenomenon is known as vacation renting, and it has become popular.
A vacation rental is a fully furnished apartment, studio, or house rented out on a short-term basis as an alternative to a hotel. A vacation rental is also called a holiday home rental, short lets, short-term rentals, self-catering accommodations, etc.
If you have a house, apartment, cottage, or property you want to make money on, you can convert it into a vacation rental and draw in extra income every month. The process is not that complicated and can be relatively easy if you have the skills for it. Read on. This exposé will give you a comprehensive guide to making an informed decision about vacation rentals.
Why choose a Vacation Rental over a hotel for your next trip?
Some people have no plan to confine themselves in a room, so they prefer a week stay in a hotel. However, imagine you book a fully furnished four-bedroom house right on the beach, and you put the key in the door and open it, feel like you are about to walk into a welcoming territory, instead of the sterile feel of a freshly prepared room.
Other options include renting a room from a local family that has opened up their home to visitors to rent a spare room in their home. It is a way to immerse yourself in the local culture of the area you are visiting.
Benefits of Vacation Rentals
- Lower overall costs when you factor in food savings over hotels
- Offer much more privacy for a parent traveling with children
- Vacation rentals often have many more amenities
- Get a more intimate cultural experience
- If traveling in a group of more than two, a single hotel room is not an option. You can get a more spacious one or two-bedroom apartment for the same price as a single hotel room.
- It is better for team building. Would you rather hang out as a group in the same living room than be a crowd in someone else hotel room?
Disadvantages to a Vacation Rental
- Depending on the area, availability could be a problem
- Vacation rentals are homes away from home, and you have to do the housekeeping or pay someone to do it.
- Sorry, no room service unless otherwise stated.
- Location is not always the best.
- As much as vacation rentals have a lot of advantages over hotel rooms, some occasions require a hotel. Hence, hotels serve their purposes optimally.
Who can own Vacation Rentals?
Vacation rentals are also called vacation homes, vacation villas, or second homes. A vacation rental can be as simple as a room on your property or as elaborate as a Mediterranean-style villa with an infinity pool and chef on staff. Anyone can own it as far as you have some space to spare or share. You do not necessarily need to have a multi-million worth of building to invest in vacation rentals.
If you are a regular traveler, and while you are away on your trips, no one is at home, you should consider listing your apartment on a vacation rental website like Likizo Lettings. By doing so, you can set availability for the days you will be out of town and provide accommodation to someone else. The income from the vacation rental can cover your travel expenses, not bad, right?
Also, sometimes homeowners find themselves alone in the house for a long time. Probably because kids are away at school, or even grown and decided to move out, what we do with the extra space is up to us.
Apart from providing companionship, every square inch of your extra space becomes a source of income generation. And mind you, vacation rentals can be in any form – studio, shared apartment, entire apartment, whole house, condo, sofa bed, and even villas.
How can vacation rentals benefit you?
Vacation rentals are becoming a trend and a hotspot for those looking for affordable accommodations. They are a beautiful way to create a passive income for you and your family. The idea is pretty simple, you offer a room to someone visiting your city, and in return, they pay you a small fee. The main benefit of this kind of accommodation is that it is affordable and doable anywhere. Also, you can choose to offer your entire apartment or just a room, so you will not be taking up space that you would otherwise use to earn money.
It is also a fast way to earn some cash and cut expenses. It is not a bad idea to start your own vacation rental business if you have an extra room or two. You can use the extra space to earn some cash. It will also give you a little extra money to spend on your vacations.
Vacation rentals can also be a way to make money while you are traveling the world. If you are traveling out of town for a few months, you could rent out your property; and let a vacation rental company handle the details of collecting rent, dealing with disturbance complaints, and repairing damages. Here are some of the advantages of owning a vacation rental.
Advantages of Owning A Vacation Home Rental.
- Income generated can pay up mortgage and other property investment expenses.
- Unlike long-term rentals, you will be able to check on your short-term rental regularly, clean it, and do required maintenance.
- You can maximize profit by setting your rates according to the season demand.
- You get to make new friends from far and beyond and from all walks of life, learning new things about other cultures. This aspect is a turn-on, wouldn’t you agree?
What are the disadvantages and problems of vacation rentals?
The vacation rental business is a booming business. With the increase in the number of people who prefer to travel and see the world, the number of vacation rentals will continue to rise. It is projected to grow from $191.5 billion in 2017 to $335 billion by 2025. According to this cnn article, 2020 saw a huge increase in purchases of vacation home. However, this is mainly because of the fact that more people are becoming aware of the benefits of using the services of vacation rental owners.
The growing popularity of this business has led to the growth of some problems that are potentially harmful to the business. The biggest obstacle that these owners face is the challenge of being able to trust the people who want to use their services. It has become almost impossible to differentiate between scammy users and real renters. Here are some of the top reasons why you may want to avoid vacation rentals.
Many people have been duped into thinking that they can make thousands and thousands of dollars by opening a vacation rental, only to find out that they couldn’t break even, let alone make a profit. Another problem that has arisen is that many vacation rentals are of poor quality and are in bad condition. These properties are often rented out to vacationers who have little to no knowledge of the condition of the property, leading to a bad experience. If you are considering investing in a vacation rental, consider these disadvantages first before going ahead.
Disadvantage of Investing in Vacation rentals
- Rate is subject to season. You may have to reduce your amount at some time, thereby making cash flow planning harder.
- There is a likelihood of theft, burglary, or problematic renters because the number of people going in and out of your property increases.
- It is time-consuming to manage.
- If you are not listed on a vacation rentals website getting your rent from guests can be problematic.
- In some places, there are legal restrictions on vacation rentals.
How do you get started with a vacation rental business?
Vacation rentals are easy to set up and maintain, and the profits can add up if you’re willing to put in the work. While there are a lot of vacation rental businesses, they all have one thing in common: they are all run by people willing to share their space.
If you have an unoccupied area and time to spare (whether a spare bedroom or a luxury villa), you can probably turn it into a vacation rental through a site like Likizo Lettings. It’s a great concept, but it’s not easy to get started. There are many moving parts when it comes to vacation rentals, and you’re going to have to handle a lot of responsibilities. Take a look at some of the essential factors of running a successful vacation rental business.
How do you manage a vacation rental business?
Vacation rentals are the new source of accommodation. Anyone can own it as far as you have some space to spare or share. You do not necessarily need to be a multi-millionaire. You can start small and grow as big as you can afford. So, how do you manage a vacation rental business?
- The first thing you need to do is have enough space to accommodate your guests.
- The next thing to do is list your rental property on the websites where you want your guests to find you.
- The last thing you have to do is have the most appealing listing possible.
If you have all these things, you are ready to get started.
Conclusion
We hope you enjoyed our exposé about vacation rentals. Today, there are several ways to own a vacation home, and it’s important to understand the benefits and disadvantages of renting or owning one. We hope that you have learned something new from this blog and that you’re able to make the best decision possible when it comes to planning a vacation in the future. We wish you the best of luck!