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Tag: Vacation Rentals

  • Getting the Maximum Return on Investment from Luxury Vacation Rentals

    Getting the Maximum Return on Investment from Luxury Vacation Rentals

    By Asli Theobald, Dream Home 30A

    They say the proof of the pudding is in the eating, and the proof of vacation rental stays is in the reviews. Each time a guest stays at your luxury rental and doesn’t leave a review, it’s like bypassing the chance to advertise for free on a billboard visible to thousands each day. No other advertisement for your home can be as effective and convincing as an abundance of good reviews from actual, real guests.

    Frustrated Beach homeownersA good vacation rental manager knows how to elicit five-star reviews from appreciative guests without having to ask, meeting the high expectations of those desiring a luxury experience.

    Does your vacation home’s listing appear to have acquired only 1, 3, or 10 or 15 reviews so far despite having been on the rental market for years? If so, this often means your rental keeps getting unlisted and re-listed on booking platforms, to wipe out any bad reviews before you get a chance to read them and find out what’s going wrong.

    I know a Panama City Beach condo bought for $165.000 in 2019, pulling in almost as much profit as a home acquired for over a million dollars in Watercolor. The PCP condo utilizes the selling power of trust, having acquired more than 200 great reviews from actual guests. When most Americans can take only one vacation a year, can you blame anyone for wanting to be sure they’ll enjoy it?

    In 2017, Airbnb Luxe was born when Airbnb acquired the successful platform Luxury Retreats. Has your luxury home made it into Airbnb Luxe, when Airbnb is currently the world’s largest booking platform? Many 30A homes never make it into the most popular luxury home booking platforms out there, causing countless vacationers to never see those homes.

    If a vacation rental doesn’t have enough visibility and reviews and doesn’t seem to be booking, its manager must keep lowering the rates until it does start booking. If your rental doesn’t have or doesn’t seem to be headed towards acquiring hundreds of great reviews with a great overall star rating on at least one major booking platform, you’re not seizing the opportunity to make a sizeable amount of additional profit each year, there’s no ifs and buts about it. This applies to whoever lists your rental on whichever platform or local luxury vacation rental management company website. Trust always sells and lack of trust fails to sell.

    In addition to not keeping track of reviews, another common mistake is not putting the right “make-up” on a luxury home. A million-dollar home whose décor looks outdated and/or unattractive may need around $100,000 worth of trendy furnishings and accessories. Expecting renters to pay top dollar requires increasing a home’s perceived value with updated, attractive design elements. Beautiful interiors produce beautiful listing photos (worth a thousand words), preventing you from losing countless bookings to competitors. And when your guests arrive, they can fall in love with your home at first sight, getting a great first impression likely to linger throughout their whole stay.

    In a nutshell, success in vacation rental management boils down to creating happy guests, also with the help of local trip planning advice guaranteeing a wonderful time on 30A. Happy guests keep coming back year after year, ensuring your investment’s continuing success.

    Asli Theobald is the owner / operator of Dream Home 30A, call 850-867-5449 or visit www.Dreamhome30A.com for more information.

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  • Demand is High, Fall Is Great Time to List Your Home

    Demand is High, Fall Is Great Time to List Your Home

    Demand is High, Fall Is Great Time to List Your HomeBy Tad Hunter

    Now that summer has ended, families and investors are looking for homes to buy. It is a great time to list your home for sale.  How strong is our local Miramar Beach marketplace? And what about for those looking to buy?

    The inventory of homes and condos in our local market is down from a year ago by 4%. Current inventory has also decreased from 10 months to 8 months within the last year. The time a home spends on the market has also shortened. New listings were roughly equal to sales in July. The list price of the median home for the first 7 months of the year is up just 5% vs the same time last year. The median sales price in July vs a year ago is also up 4.1%.

    The data reveals a healthy market that is growing at a reasonable pace. There are more buyers than sellers. If you are thinking of selling, now is a great time as the demand is strong.  Many buyers I’ve worked with recently have had concerns about buying high or having missed the market. However, the statistics continue to indicate that the market is generally in balance. Prices have not skyrocketed or spiked unreasonably. High quality homes when priced correctly are selling quickly.

    Buying a vacation property in the Fall can give you both the time to update your home before Spring and have your management company start marketing. Ask for a Cost to Own (CTO) worksheet from your Realtor when making your investment decision. The CTO worksheet is essentially a mini income statement for your property. Your rental estimate is your top-line income number. From your income subtract property taxes, property insurance, HOA fees, property management expenses, and all utilities. Each property and neighborhood is different so remember to check what items are included in your HOA fees. Does your HOA fee include a resort fee, garbage collection, electricity, and check to see if it’s a monthly or quarterly expense. If you are looking at a single family residence, don’t forget cable/internet, lawn care, and pool maintenance. When accounting for your management expense ask if there are extra marketing or monthly maintenance charges. Your Realtor can help you get these numbers organized quickly.

    One of the most cost effective ways to increase your top-line income when selling or renting is with a fresh coat of paint. Vacationers book by looking at pictures online. Cool coastal tones are more popular with buyers and renters. The yellows and maroons of the 2000s are not as appealing when compared to the up to date neutral colors. These colors also make your space feel larger and more liveable.


    Tad Hunter is a Realtor serving families in the Miramar Beach and South Walton area. He is a partner in the RealJoy Vacation company which provides property and vacation management services in the area for 8 years. Tad and his family are residents of Sandestin. For more information: Tad Hunter

     

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