Have you always wanted to get into the rental property investment business? Or is it that you’re looking to expand an already operational short-term rental company? Look no further because we are covering what you need to know in this article. We’ll help you take your short-term rental business to the next level.
Passive income real estate investing has been experiencing unprecedented growth and so should your business. In 2022, for instance, the vacation rental market in the United States has shown revenue of more than $17 billion.
According to industry experts, the revenue could grow to $19.5 billion by 2023. So why shouldn’t part of this revenue roll your way, right? With the right marketing campaigns and company decisions, your short-term company can expand in no time.
Keep reading because we’ve picked on some of the best tactics to make you feel proud of your rental property investment every month.
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How to Expand a Short-Term Rental Company
The popularity of investing in short-term rentals is on the rise. The market is in need of large living areas, technological advancements, and the lack of human intervention. These are some of the aspects that have taken short-term rentals to the top of the game in hospitality.
You may already have a portfolio of properties or maybe you’re looking to build a company in short-term rental investing. Whatever the case, this is your opportunity to boost your profitability. Keep reading to know how you can expand your company.
1. Use Technology
The way we travel has drastically changed over the past few years. This shift has been largely attributed to travel technology.
Technological advancements have provided unparalleled conveniences for guests and efficiencies for property managers. For guests, options like contactless technology for checking in and communicating have helped to minimize face-to-face interactions. This makes for a simplified experience.
Property management companies and all-in-one software platforms consolidate and automate the entire booking for any rental property investment and travel journey. This enables property managers and their teams to focus on the core of their business.
Vacation rental software helps to drive profitability. This is done by minimizing inefficiencies and upping guest satisfaction through a variety of approaches. Automated guest communication, for instance, will keep your guests informed throughout their trip. It ensures that they receive top-class services as you save time.
A unified inbox on the other hand will enable you to sink various booking platform accounts. Thus making it easier to further optimize communication.
2. Making Strong Partnerships
To grow your rental property investments, you need to increase your property portfolio. This is something that you can do through homeowner acquisition, hiring a dedicated staff, or partnering with the best property management company.
Remember that people are the foundation of your success. Thus, you must choose high-quality home managers, top-talent employees, and partners with the leading tech software providers.
We also recommend that you partner with techvestor.com, which is one of the best property management companies. The company allows you to invest in more short-term rental properties to expand your portfolio. These partnerships will support you in providing the best quality services to your guests and making the right decisions for the company.
You can also connect with other investors in short-term rental properties to seek support and advice. Continuously learn what’s happening in the industry. You can do this through social media platforms like LinkedIn and Facebook. You can also choose to attend industry events where leaders in the industry share their expertise.
3. Expand Your Presence on Social Media Platforms
According to statistics, social media platforms boast 4.2 million users worldwide. As such, they are the perfect marketing platforms to help clients in connecting to your passive income rental property.
Increase your interactions on platforms like Twitter, Facebook, and Instagram. This will help to strengthen your relationship with guests. You can develop your brand awareness by increasing leads and boosting traffic to your website.
To make better use of this short-term rental property tactic, choose the social media platform to focus on. This should, however, be based on your time and your audience’s preferences.
4. Maximizing the Occupancy Rate
One of your top priorities should be filling in the vacant dates on your calendar. Note that an empty spot in your short-term rentals translates to zero income.
Multi-channel distribution is a long-proven marketing strategy. It helps to maximize a vacation rental’s occupancy, especially during the mid to low seasons. That’s why you need to list your property on multiple platforms.
With a lot of online booking websites out there, choosing the right one to advertise your rental property investment can be a challenge. But based on your niche and business needs, your marketing strategies should help you list your properties across 4-5 leading OTAs.
5. Provide 5-Star Guest Experiences
Giving your guests the best experience will help to increase customer loyalty. It will also lead to repeat bookings and 5-star reviews. Happy and satisfied clients are more likely to be advocates for your brand. This leads to client referrals through positive word of mouth.
To offer top-quality guest service, it will be wise to give the guests all they want. Stay updated with industry trends such as sustainability and remote working. This will help you to provide sustainable options such as a working space on leisure trips.
6. Define Your Target Audience
What type of clients do you want to rent your property to? Taking control of your reins will help you decide who your ideal renters are. So take time and analyze your previous guests. You can then compare them to your desired market. Consider your pricing as well, as your online accessibility, and marketing channels.
Note that all the moving parts of your online listing will fall into place once you’ve created your ideal customer profile (ICP). Some of the aspects that you must consider in defining your ICP include:
- Marital status
- Income bracket
Take, for instance, a traveler called Tom who is always traveling for business across the United States. Tom travels alone but takes his wife with him once in a while. He also gets the whole family to join him once a year at an all-inclusive holiday resort. Travelers like Tom will need:
- Hotel rooms in the city center
- Holiday resorts that are family and pet-friendly
- Charming rooms for two that must have access to the city center
Assuming Tom’s needs match your rental property investment listing, you can use an avatar like his to define your ICP. You can then go ahead and market the listing.
If you’re into rental property investment, note that this is the perfect time to scale your short-term rental company. That’s considering that the industry is currently booming and full of great opportunities. Simply take note of the tactics we’ve shared to tap into the available opportunities.
Remember to use the power of technology and great partnerships with companies like Techvestor to support your growth.