How to maximize a short-term rental's cash flow

Question

I am currently looking into purchasing a 3-unit property on a lake that is in need of a cosmetic update. I know a lot of the common sayings to increase rental/occupancy rates involve taking professional photos, creating a unique experience, ETC. but I was wondering if anyone else has any tips for me? The property is located in a quiet town but sits right on a lake and has a great view. What are some cosmetic tips you could give me to make this a desirable place to stay?

Luke Carl · Answer

I bet you already have everything it takes. Just need to make the leap!   Fancy coffee machine and Roku in guest mode and let it rip

Tiffany Cohen · Answer

Everyone saying the main things I was going to. OTAs like Airbnb work off an algorithm so high res photos AND description are important.  They pick up on key words and how the information is written (write like you are describing the experience so they can see and feel the vibe) and how it is formatted and easy to read (bullet point amenities in different sections). Do a quick search on how to optimize your SEO for Airbnb or other OTAs.  A lot of free information out there and it's important otherwise they wont rank you on the first page when you're new.  Also send to friends and family and contacts and ask them to share and favorite the listing.  Spend time on the page so it's being read. All these things work toward having it rank higher on their pages which is most important when new (and always of course). Email it out and text it to people and get it seen right out of the gate!

Also consider listing the property as a 1 unit, 2 and 1 unit and a 3 unit? So larger groups can book together? If you use a PMS they can list it and calendar it appropriately. Of course use pricing programs and do all the normal back end things so it runs smooth and you offer great communication and customer service to get those 5 star reviews.

Connect with the community and use local goods from shops as an extra touch if it makes sense and they will help support your business as well.

Google "Top short term rentals in your area" and if any bloggers have written about top 10 lists or the like reach out and see if they revise if they would consider yours. To go the extra mile in the marketing and differentiating is where you will see results.

So much more but these ones are low or no cost things you can do.  Good luck!

Leslie Anne Morris · Answer

The photos of the view are the most critical part.  Then making sure you have all the amenities that other neighboring similar properties are offering.

Craig Glendenning · Answer

Hey William!

Summary: PHOTOS, PHOTOS, PHOTOS. Any questions?

I concur with others that photos are your *critical* marketing tool. I found this study of a data-driven analysis helpful, BUT...I am not a photographer so I hired one for about $300 to take interior, exterior & drone shots. I struggle with the "If you want it done right, you have to do it yourself" syndrome, but I was very proud of myself for keeping my iPhone in my pocket and staying in my lane on this one. Immediately after putting up the new photos, my booking conversion rate on AirBnB increased 10x, and interestingly the AI that chews on photos decided that my photos were better than the competition now, and bumped me to the top of the list, so not only did conversion rate increase, but total "top of funnel" impressions increased. That $300 *easily* made me $1000 just that month, and continues to keep me ranked high.

Note that my photographer did not do any staging. That is a critical part of the photography process. Beautiful photos of ugly things seems counterproductive : )

Account Closed · Answer

@Luke Carl: Do you have any sources for Pre-Pandemic STR rate averages and occupancy averages by zip code?

People are indicating that STR occupancy rates are declining now and this last summer was simply pent up demand based on two years of house arrest, I mean covid quarantines.

Eliott Elias · Answer

PRICING! Price right so that you don't have a day vacant, when things are slow drop the price, if you have a two day gap adjust for it

Michael Baum · Answer

Hey @William Patsalis, I am the odd man out on photos. I took all ours with a very good mirrorless Sony. They look good, not perfect.

The issue I have always had with many pro photos is that they are enhanced to within an inch of their lives. The sun is actually in the corner of the room there is so much light, everything is sharp as a tack, not a scratch on the place etc. The place looks like a brand new penny.

Then the guests arrive and they see the reality which is less than they expect. It isn't as bright, things are a bit worn and the like. It dampens the mood IMHO.

When people arrive at our house, they text me to tell me how good the place looks. The photos don't do it justice. That sort of thing.

I am not saying highly polished pro photos are dishonest, but they should reflect the actual place and not the shiny mods that make it look like a million bucks when it is more like 500k.

My 2 cents.

Bruce Woodruff · Answer

I would look at the pictures from your potential competitor's places. Mimic/steal what you think works and dump what doesn't.

Melissa Nash · Answer

• Airbnb is based on momentum- its an algorithm. The objective is to show up in as many search results as you can.
• They are a FOR PROFIT CORP, so think about how everything in those eyes.You are rewarded by being pushed to the top as you book more and receive more positive reviews. They earn more money if you look better, each guest performance earns you rewards in the eyes of the algorithm. You harm the reputation of the company if a guest has a poor experience and decides not to use AirBnB again.Photos are everything and they promote properties with good photos.... And then easy to read listing description.Check & fill in every single box, line, amenity, etc. Get dynamic pricing tool like Pricelabs. 
• You are rewarded by being pushed to the top as you book more and receive more positive reviews.
• They earn more money if you look better, each guest performance earns you rewards in the eyes of the algorithm. 
• You harm the reputation of the company if a guest has a poor experience and decides not to use AirBnB again.
• Photos are everything and they promote properties with good photos.... 
• And then easy to read listing description.
• Check & fill in every single box, line, amenity, etc. 
• Get dynamic pricing tool like Pricelabs.

• You are rewarded by being pushed to the top as you book more and receive more positive reviews.
• They earn more money if you look better, each guest performance earns you rewards in the eyes of the algorithm. 
• You harm the reputation of the company if a guest has a poor experience and decides not to use AirBnB again.
• Photos are everything and they promote properties with good photos.... 
• And then easy to read listing description.
• Check & fill in every single box, line, amenity, etc. 
• Get dynamic pricing tool like Pricelabs.

Ask me anything! Feel free to message me

John Underwood · Answer

Does it have a dock? Canoes, Kayaks etc?

How to maximize a short-term rental's cash flow

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