The holiday rental concept is exploding in popularity. Within the ‘70’s, luxurious hotels, in the ‘80s, bed & breakfasts in the ‘90’s, time-shares and within the new millennium, holiday rentals.
The vacation rental has been a mainstay with European visitors for many years and now it’s moving into its own in the US.
Even this dismal economy, there is certainly potential income from renting your second house to vacationers. If you are lucky to get a property in an area considered a tourist destination or a place that you can promote as a tourist destination, holiday rental is a significant opportunity that you can augment your income or maybe pay-off that mortgage monkey on your back!
I hope the insights I give out here about this burgeoning business, will give you you a starting point, some ideas, including a reason to explore further.
I am going to ask you to take a look at this as something quite like a business plan, so I’ll use this format to take you step-by-step through this. Let’s begin with…
A description of your business
Renting your next property to clients seeking holiday accommodations.
The business and owner’s background information
You might have a background in real estate, property management, the hotel industry, the tourism industry or leisure business. Said experience is not required, but any business experience is a plus.
The proposed resources to be used
Not to be the master of the obvious, but your second home, your vacation house or even your time-share can provide accommodations to vacationers.
The business strategy
Utilizing the services of several Internet based distribution and revenue management platforms for specialty lodging suppliers; you will rent your second home to vacationers for a set time period and fee.
Trends on your business and the industry it will operate within
As discussed earlier in this article, the trend in holiday rentals is exploding within the United States.
How your business will operate
Many vacation rental property owners choose to rent direct. This means marketing, web site development, legal help with drafting rental contracts, etc. You must decide, based on these and many other factors, how you want to proceed.
Who will manage and work within it
This can be a ideal family operated business, if circumstances and geography allow for that.
What other businesses operate in the same market/industry
You may be in competition with local hotels, motels, travel lodges, bed and breakfasts and probably other vacation rental owners.
How you will market/ sell your product or service
Most rely on third party services to list and rent their home, as discussed earlier, however, many choose to rent direct.
The results expected
Naturally, the objective is to produce a profit. You will need to balance your rental fees against those of the competitors within the market. You will have to determine your costs, like maintenance, mortgage payment and property taxes and charge a fee high enough to cover those costs while still allowing a good profit. Maybe profit isn’t going to be your primary motivation. You might deem it adequate to have the outside assistance in paying taxes and mortgage payments.
A summary of its feasibility
If you own a second property located in a tourist destination, this is actually achievable.
This ramble is intended to offer up some ideas you may not have previously considered with respect to your next home. It can be by no means complete, however, if the concept captures your interest, there are many sites on the Internet that will help in pursuing additional information.
David K. Bradley is a writer for Indovillas Bali which specializes in Bali Villa Rental, Bali Villa Rental Seminyak and villa sienna as well as tour and activity arrangements. They offer an assortment of holiday packages and property deals on the island of Bali.