Real Estate Marketing

4 Obligatory Ways To Generate Vacation Rental Profits

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13 Articles Written
Vacation Rental

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Vacation rentals represent a burgeoning opportunity for real estate investors looking not only to capitalize on one of the fastest growing travel segments in the world, but also to enjoy their real estate investment quite literally (cue the Corona commercial beach scene).

But unlike more orthodox segments, the well being of a vacation rental investment surprisingly depends on a keen marketing sense. Seeing as though an investor’s ROI is tied directly to his or her yearly occupancy rate, vacation rental owner traits tend to more resemble those of small businessmen than they do hands off financiers.

Sure, as I’ve shared in previous posts, the commitment is more hands-on, but according to the massive influx of baby boomers now entering the vacation rental game, so too can be the great financial returns.

Before getting involved in a vacation rental investment, it can be helpful to know different marketing avenues that most directly impact occupancy rates:

1) Listing Sites

An elite group of online directories tend to rule the vacation rental cyberspace. When travelers seek out rentals, they are drawn to sites like VRBO (to learn more about how to rent your place and list for free on VRBO, click here), HomeAway (click here to list your place for free on HomeAway—only pay when you get a booking), and FlipKey.com and accordingly, these three behemoths are part of pretty much every property owner’s marketing repertoire. Annual memberships to these sites can range from several hundred dollars to several thousand per year, but thanks to the amount of bookings they generate, owners and managers always seem to come back for more.

2) Personal Websites

As with any green industry, personal websites representing one property (or a small fleet of properties) are becoming the name of the game in today’s vacation rental scene. Any owner who takes their property marketing seriously has started to develop their own online presence apart from the obligatory listing sites. Personal websites (easily done on the cheap) help convey an owner’s personality and insight in what’s proving to be a very identity-driven industry.

3) Blogging

Perhaps the vacation rental owner/manager’s best marketing weapon is their insider knowledge, which acts to draw travelers away from generic hotel stays and into a more local and authentic experience. Successful vacation rental proprietors tend to be those who share their knowledge about their neighborhood in constructive and generous ways: whether it’s blogging on their own or submitting guest blog posts to popular travel sites, their wealth of information (and how effectively they share it) is often directly proportional to calendar activity.

4) Word Of Mouth

One of the oldest marketing dynamics in the real estate game takes on a new twist when it comes to vacation rentals. Because their economic livelihood depends on booking rooms, owners and managers of vacation rentals are – more and more – becoming mini-hoteliers in spreading their advertising gospel throughout the community. By connecting with other proprietors (tour operators, restaurant hosts, tourism officials), successful vacation rental owners leverage personal connections in their local environments and drum up great street cred.

Vacation rentals are getting lots of press these days as the ever-growing market starts to encroach on traditional hotel travelers. Investing in a vacation rental brings with it a sense of entrepreneurship and engagement that about as new to many newcomers as it is rewarding.

Photo: kevin dooley

    Mie Murphy
    Replied over 6 years ago
    We have two vacation rentals and manage 5 others on the ocean and the VRBO.com and Flipkey.com provide 90% of our business. Mike
    Matt
    Replied over 6 years ago
    Good stuff Mie. I think the productivity of each site kinda depends on location as I’ve heard varying (yet extremely conclusive) results from owners around the world.
    Kevin
    Replied over 6 years ago
    Using all 3 sites you listed and HomeAway.com generates the most bookings by out of all of them. It’s always good to run deals to give your vacation rental a slight advantage. Also, I would recommend getting online reviews from guests. I would then follow up with these guests sometime after they’ve stayed at the property to see if they’d like to book another vacation at your place.
    Matt
    Replied over 6 years ago
    Online reviews for vacation rentals (not unlike any commercial product) are HUGE in generating more bookings. Similar to TripAdvisor which does this for hotels, the reviews portions of listing sites might just be more influential than the details of your property themselves…
    Gord
    Replied over 6 years ago
    airbnb.com is changing the rules/landscape for all types of short-term property/room rentals. an article about it’s effect on the vacation rental market would be appropriate IMO. we started using it for a condo vacation rental and got the ideal customer the day after our listing went up. just saying……
    Matt
    Replied over 6 years ago
    Good call Gord. I’m on it (even though I did need to look up the meaning of “IMO”)
    Paul
    Replied over 6 years ago
    Hello Matt, These are all very actionable pointers which I will be implementing to improve traffic to my vacation rental property. Thanks also to Mie and Kevin for their numbers on using various website and tips. Paul
    Matt
    Replied over 6 years ago
    Terrific Paul! Good luck!
    Matt
    Replied over 6 years ago
    Terrific Paul! Good luck!
    Josh
    Replied over 6 years ago
    Hi Matt, Great story, thanks for sharing. My kids are the “why” for me as we’ll and real estate has provided some nice moments for us to share. We just bought a condo in North Conway NH and are marketing it through Evolve for vacation rentals. Have you ever dealt with them? Thanks Josh
    Matt Landau
    Replied over 6 years ago
    Love that Josh! I do recommend Evolve Vacation Rentals heartily. A great company to work with (and clearly, for you, a great cause!!!).
    sheen
    Replied over 5 years ago
    This is one of the best post read by me today and by the way thanks a lot for your informative post. 🙂