Short term rental revenues: how do you make your property more profitable?

This short-term rental secret is barely legal, now you can make massive money too

Did you know short-term rental can make you wealthy?

Many private-millionaire landlords have their property rented on short-term lease over long-term. Do you know why? Yes, you’re right. Because the bank-roll from short-term rental trumps long-term rental in virtually every locale.

Long-term rental locks your rental property for longer periods. Your tenants will normally extend their stay over 12 months. Terminating a contract before the contracted date may attract penalty that can strip you off your money if a jiffy.

Short-term rental is easy to hack and the fastest method to build a profitable business. A prominently located property will attract masses of tourist who wish to experience the city like a local. Unlike long-term rentals, where negotiations is complex and takes ages to complete.

As you read through this recently discovered fact that uncovers the truth of property rental business, you’ll be spellbound to know that you could make more money in less than half the lease period of a long-term rental system.

How do we know this? In an article posted by from San Francisco area, there were startling revelation relating to rental cost. Prior to kick-off at Super-bowl at San Francisco, the prices for 3 days accommodation in Russian Hill 3 bedroom was walloping at $17000. Yes, you read it right. That’s how short-term rental landlords are raking in the dough.

In addition long term rent rental often requires renovation adjustments and you often results in more commitment and legal issues involved rather than a short term rental.

Today many multi-sided platforms they manage to have to decrease the risk of renting to minimum level for landlords and real estate companies.

Here’s a Cheat-sheet for a short-term rental business-owner

Although not all that glitters is gold for everybody, there are certain caveats to short-term renting. If you follow my advice word-by-word, you’ll surely build a mega-successful rental business in no time.

  1. In every country, city, or state, there are legal implication that you must be aware of. Like certain states require you to obtain a license to lease your property for less than 30 days. It is best you contact your local lawyer to get legal assistance before you start-out.
  2. Next, you’ll have to feel the pulse of rental business in your locality. You can get a classified newspaper from the central newsstand and look at prices of apartments that are similar to your rental property with a keen eye. Circle the relevant rental charges, add all of them and divide it by the number of listings (circles that you made). This is the run-of-the-mill price that you can demand.
  3. Another simple but fiercely-effective step is to go to airbnb’s website and look for competing prices. Look for the crown-jewel in every listing, especially the wildly popular apartments. Does the listing has private pool, or tennis court, or perhaps barbecue-backyard? Moreover, analyse the offers and make one that is better than it. An offer they can’t refuse. Are the kitchen fully-stocked? If not, then you offer a full-stocked kitchen along with bathroom essentials and artwork that will greatly enhance guest experience.
  4. You can dramatically spike your rental revenue by tactfully marketing your property. By reading guest review on Airbnb or other sites, you can study the class of tourist/visitors that frequent your city. For instance, San Francisco attracts Super-Bowl fan in flock of millions during the first week of February. Most of the land-lord adorn their listing as per the super-bowl theme to make guest have a one-of-kind experience.
  5. What this means is that you can attract a throng of guest to your listing as   well. All you have to do is strategically theme you property in your city’s or country’s most ravishing festival, season or fiesta. Online channel are often cheaper and more effective but being offline at some certain point can be way more effective.

By doing this, you’ll rise head and shoulders above 90% of your competing rental business owner.

Again, you do not want be jack of all trade rather master of just one. If your locale boasts of slew of tourist attractions, you should ideally choose only one and gain a magic touch for it. Being popular for singular event can drive revenue faster.

6)  Like everybody else, you are in the rental business to make money, that’s why it’s best you make an expense sheet for fixed and variable expenses that erodes revenue.
You can ask an accountant to prepare the expense and revenue sheet to draw up exact profit from the business.

An accountant can do more than just billing and computation. You can rest on your laurels after employing an actuary because your taxes and returns are taken care of. As long as you’re within the confines of legal boundaries and keep these tips in your mind, you can safely grow your business into a money-churning machine.

Once you get the wheels turning, you must include in this financial plan the occupancy rate. What is an occupancy rate?
It is how many days or months in year is your apartment occupied by guests. In a year there shall be certain months (February—in case of Superbowl) when you will experience a surge in demand.

How much time in percentage your property should be occupied so that you do not lose money? Make discount ad or promotion according to your forecast.

Pro-Tip: Always have a fixed minimum price before you even start-out with the rental business. This will ensure that you stay above the line of cost at all times, for safeguarding yourself against hagglers and people asking for discount

It is always good to know how much you can be flexible on price before losing money.

Short-term rental business has its share of wealth that you as a landlord can massively cash-in. All you need to do hit the nail on the head when it comes to marketing and pricing to watch your profits shoot through the roof.

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