Many people believe that running a vacation rental business is as easy as running any other type of business. The reality, however, is that running a vacation rental business has its own set of challenges and realities that need to be dealt with before you can start making any money.
You have to clean the house, deal with guests, manage your calendar, find new guests, and more. It’s easy to get overwhelmed by all of this! In this blog post, we will discuss some of those realities and hopefully help you make an informed decision about whether running your own vacation rental property is worth it for you!
Running a vacation rental business can be fun and profitable, but it’s also really hard work. Vacation rentals are not as easy as they look. You have to constantly be on top of things, and you need to know what’s going on at all times. If anything goes wrong with your property, it can cost you hundreds or thousands of dollars very quickly.
For instance, managing a BBQ boat rental can be an exciting prospect. However, running a successful boat rental company is no piece of cake. You will need to be running the business on your own, as you won’t have any employees or staff members to assist you.
It’s also worth noting that running a vacation rental business isn’t just about renting out properties and booking reservations with guests. You will find yourself doing things like keeping track of your bookings, coordinating with the cleaning crew, dealing with repairs on the property, or even finding new tenants when someone moves out early!
Some of the most common challenges that are manifested when running a vacation rental business include the following:
It is difficult to manage everything on your own: Running a vacation rental business can be challenging if you’re running it all on your own. You may find yourself accomplishing tasks that are not an essential part of running the property, like dealing with repairs or finding new tenants when someone moves out early!
- Vacant periods: If running a vacation rental business is your only source of income and one of your tenants moves out, you will face an empty property for a period. This might put you in the position of having to take a part-time job or running another business in addition to your vacation rental.
- Lack of consistency: Vacation rentals can go unoccupied for months, and this lack of consistency can make it difficult to generate enough revenue from running the property. To combat these challenges, you need reliable tenants who will try to maintain a steady occupancy rate.
- Lack of control: You might not have the same level of personal control you are accustomed to running your own home as an absentee landlord or property manager when running a vacation rental business. Vacation rentals often come with amenities that need constant attention, such as pool maintenance and landscaping. If these aren’t maintained, you may lose renters.
- Long-term investment: Vacation rentals are a long-term investment. Running the business can be more expensive than running your own home because some expenses such as equipment rental for cleaning or pool maintenance will need to be paid in advance. Plus, you’ll have other ongoing costs like insurance premiums and property taxes that are not involved in running a house.
- Looking for reliable employees: Vacation rentals require a lot of work, and you need to hire people as employees or independent contractors, such as cleaners. Ensure that the person can be committed for at least 30 hours a week and is available on short notice when guests check in to your property. This way, you can be sure that you always have somebody to rely on to help you with the responsibilities of running your business.
Of course, vacation rentals come with advantages like:
- The ability to earn money from the property you own: A vacation rental can help generate an income for your property that is not running at full capacity.
- Sharing amazing experiences with others in your community and around the world: Whether it’s hosting visitors as they travel or inviting travelers into our homes, this industry has allowed entrepreneurs to share their world with others and to open the door for unique experiences.
- Creating an unforgettable experience: Vacation rentals allow travelers to live a more authentic travel experience. They can have access to things that are not available at hotels or resorts. Whether it’s cooking eggs on the patio, running barefoot through the garden after raining, or setting up a hammock on the riverbank, vacation rentals offer an experience that is all about the tenants.
Sure, managing and running a vacation rental can be challenging. However, the rewards are worth the work. The vacation rental business is all about maximizing opportunities and can be a great way to supplement your income or get into entrepreneurship for the first time. Vacation rentals offer amazing benefits like flexibility, being in charge of your own schedule, running things from anywhere with just an internet connection (and maybe wearing pajamas), meeting new people and cultures, and the gratification of running your own business.