All Forum Posts by: Theresa Holl

Words I have never typed before: Great post Bubba!

Seriously, let me take a stab at this as I love how you organized it.

Vacation Rental Income Strategies:

1. Marketing Tactics: How do you attract and retain vacation renters for your waterfront condo?
   1. Step one in optimizing your listing might be to set up a simple website with a landing page, event calendar and blog so you can become the hub of information for people traveling to that area.  Use AI to help you write blogs and a newsletter about what's unique and new in the area.  For SEO benefits, make sure to call out the top local attractions on your site and all your OTA listings by name. This alone can get you higher up on the Airbnb listings.  If XYZ Whale Watching Site is nearby, mention it a few times at least.
   2. Complementing that, you can also set up a Facebook fan page about the local area (Cape Coral Vacations!) and promote local attractions (pubs, tour guides, yacht rental, etc...) while having them do the same for your rental.  Almost no one says no to cross promotion and the buzz makes a big difference.  
   3. Now you have an SEO optimized listing, web page and an audience following you on Facebook.  Roll up your sleeves and start shaking hands around the community.  Consider partnering with local businesses or organizations that align with your brand image.  Luxury and Eco are performing the best right now so consider leaning that way. This could include offering special discounts to guests at nearby restaurants (easy to execute with a QR Code), collaborating with a spa for guest packages, or sponsoring events that cater to your target demographic.
   4. Finally, don't underestimate the power of local art for retaining guests.  Put a few paintings or fine art photographs on the wall with QR codes for purchase and they will serve as constant reminders to your guests and conversation pieces in their homes.  It's a free ad that lives on in your avatar's home.
2. Property Management: Tips for managing your vacation rental remotely and ensuring a seamless guest experience.
   1. Mainly AI for instant and personalized guest messaging.  Hospitable is great, but Hostfully and others have similar features.  The communication starts long before check in.  Find out more about your guests and what they're into so you can suggest activities (and upsells) before they arrive.  Actively offer them a 5 star guest review and request reciprocity, asking what exactly would make this a 5 star experience for them.  
   2. Digital Guide Books are also great.
   3. Boots on the Ground...keep your local cleaners and contractors happy and communicating.  Inspect the property weekly for any flaws and address with owner within 24 hours.
3. Pricing Strategies: Maximizing rental income while remaining competitive in the market.
   1. Be better. Charge more. I have a business partner who literally has a butler at his condo STR in the Philippines and people absolutely love it. Take all your competitors' reviews and load them in to ChatGPT and have it analyze the amenities and guest sentiment/satisfaction. Find out what no one else is doing and then lean in.  Since a condo would be limited in terms of physical changes, think about what services or experiences you could add like grocery shopping (assuming full kitchen), concierge, driving service, eco tours, snorkeling, etc...

Quote from @Michael Baum:

Quote from @Theresa Holl:

I respect that position, but it depends on your priorities and financial goals.  My business group did this and booked solid for 18 months out in a crowded market.  So our business priority is to maximize top line revenue and bookings.  Retreats and events were central to our marketing strategy and we did very well.  

Thanks @Theresa Holl. I am not saying that it is a bad idea or not worth it.

It appears that you are doing just fine. You are in a different situation. You have an investing group, which I assume means an LLP of some kind which means you are paying the self employment taxes etc because you are not an individual. You have to run this way, but you are paying more in taxes over an individual with passive vs active investment.

Seeing as most folks who visit here are small, self managing folks, it is important that people are aware of the differences. That is why I pointed it out.

As with anything like this, get help from your CPA on what way to go. 

Totally agree Michael. I have an LLC, so don't want to give tax advice to anyone who doesn't run their investments like a business. My recommendation is to hang out with Alchemy of Money for a CPA and Engineered Tax Services for additional tax strategy. They are my go tos.

Quote from @Michael Baum:

I want to point out something about what @Theresa Holl said.

All those things are very cool and would be nice to offer, but they would constitute significant services which will change your taxable status.

So you really have to balance those sorts of special experiences or offerings. Many things listed would be considered significant services and would have you losing much of your tax deductions.

I know of a couple of STR owners who had to eat a big tax bill due to this and they had to nix those sorts of offerings.

That doesn't mean you can't create the wellness space, golf simulator, upscale game room, etc to enhance the space. You just don't want to bring in people to train folks or do yoga or whatever.

That means even if you don't pay them but created a relationship. It isn't the same as us telling folks where to rent a boat.

I respect that position, but it depends on your priorities and financial goals.  My business group did this and booked solid for 18 months out in a crowded market.  So our business priority is to maximize top line revenue and bookings.  Retreats and events were central to our marketing strategy and we did very well.  

Another thing to notice is who the experts say are making money in 2024, which are luxury and eco/experience type properties.  Don't be just another vanilla (forgettable) $190 ADR listing with cell phone pictures, no SEO and the same hot tub and fire pit as everyone else.  You can do something simple like transform a garage or unfinished basement into a "wellness center" for about $10K and then make business connections with local yogis, wellness practitioners, hold meditation retreats and specialized events. Upcharge for spa boxes, maybe a massage or concierge services, etc...Those marketing strategies will boost your bookings and top line revenue, plus make you more memorable.  Think a bit like a boutique hotel owner.  The stay is just the beginning of the revenue stream, like a base line. It gets a guest in the door and you build the experience from there. 

Be creative and see what's missing from the market you're interested in, fill the gap and think of it as a business, not just an Airbnb.  

So there's a new philosophy in rental marketing that it should be ongoing, rather than momentary. You can check out an App called Shuk Rental Marketplace and get rated by your tenants (and rate them too). That way, you build an ongoing reputation and people are waiting for your next opening.  It's long game...but long game works. 

Here's a fun way to look into this.  Take all your top competitors' reviews and have ChatGPT analyze them for amenities and see if it would be unique to you.  If so, fire away!!  

Copy, paste and analyze. Should save you hours of research and second guessing. 

AI for the win.  LOL.

The biggest thing to know about social media marketing is that the channels (Facebook, tiktok, instagram) all play off each other.  The users you're trying to engage will check you out all the major platforms and then Google you.  So the best strategy is to optimize your website first, set up or update your Google My Business profile, then do the same for all your social platforms with a unified brand voice.  Then you've got all the pieces playing off each other and can start benefitting from consistent exposure.  

It's a long game play with social media marketing for sure. 

You'll want to base things on the standard booking lead time for your market.  Take a look at how far in advance people book for high season so you don't miss any lucrative bookings.  A month ahead might not be enough.  

Congrats on your success.  It's totally in line with what AirDNA predicted for 2024 as well.  The forgettable $175 ADR listings will struggle but high end and eco are doing well.  You really have to be different these days. 

Quote from @Michael Baum:

Hey everyone, if anyone is interested there is a cool video out about group overlanding the entire Smokey Mountain 1000 trail.

It is a loooong watch but kinda cool. I figured with so many folks invested in the area they might find it fun!

EDIT - I tell ya, the site restricts so many links it just isn't fun to post fun stuff.

https://www.youtube.com/

Add watch?v=qx3IhfwBxNc  to the end of the YouTube link.

Yeah - it's just like Facebook. I get they want us staying on platform but it's hard to learn and educate without links.