Tax Season – Good Opportunity to Reflect on Strategy

During this tax season, here are some tips for maximizing vacation rental income and profit (summarized nicely in a recent press release from an online listing service) :

• Reach renters online without up-front fees: In the past, vacation rental property managers and homeowners had to pay a flat fee of several hundred dollars just to list a single property, without any guarantee of getting even one rental. A growing number of sites allow managers and owners to advertise their properties for free. Some websites now offer performance-based advertising programs that only charge for qualified inquiries or bookings that are delivered.

• Attract weekend travelers using free regional boards: Getaway travelers first consider locations within driving distance. Property managers and homeowners that regularly post to free regional boards, such as Craigslist.org, can quickly and cost-effectively reach renters planning last-minute trips. For example, Craigslist San Francisco Bay Area attracts those considering Napa Valley, Carmel and Lake Tahoe getaways. To maximize posts' effectiveness, include links to descriptive property listings on vacation rental sites, such as Choice1.com, where property managers and owners can maintain updated photos, availability, rate and location details for free. This saves time and helps keep Craigslist.org posts short.

• Offer online booking: Today's travelers shop online 24 hours a day, so it isn't surprising that vacation homes that can be booked directly online enjoy higher occupancy rates and often command premium rents.

• Consider allowing minimum stays of less than a week: In popular destinations, vacation rental property managers and homeowners can appeal to a larger base of renters if they are willing to accept stays of three or four nights. By charging a slightly higher nightly rate incorporating the cleaning and maintenance fees, managers and homeowners can fill their calendars more quickly, especially during slow rental seasons, and reduce the worry about whether a property will generate sufficient income for the year.

• Target shoulder season and off-season travelers: Many travelers prefer to vacation during shoulder- and off-season periods with lower travel costs and thinner crowds. Utilize unique online advertising programs that tailor advertising to the travel seasons of interest.