Vacation rentals are a profitable investment for landlords to generate an extra income. However there are a number of common mistakes that the new rental owners often commit. Whether it is about listing the property with the real estate professionals or determining the rental prices, there are many factors that go into a profitable vacation rental business. Adopting a professional approach to operate the business can lead to more returns and tenancy than any random strategy.
- Pricing Too High Or Too Low: A high number of available vacation rentals in your area makes it tougher to rent your property. In order to stand out from your competitors, it is important that you are aware of certain aspects of the current real estate trends. You should research about the rent quoted for other vacation rentals, their average occupancy rates, what amenities they are providing etc. to know about the competition that you are facing. Setting impractical rental rates can easily get your property unheeded by the potential guests.
- Not Screening The Tenants: Renting your vacation home without properly screening the tenants can be a very big mistake. You must evaluate and analyze if the applicants will be suitable for the property. You should talk to them and try to find out their expectations from the vacation rental. If you have certain restrictions regarding pets and the number of residents you should make sure that you clarify it in the first place.
- Booking Without Proper Rental Agreement: A well-formulated rental agreement is essential for you as well as your tenants. It must clearly state the duration of the stay, pet policy, occupancy limit, amenities provided and, check-in and checkout time. You must make your potential guest sign the agreement before finalizing any booking.
- Not Taking Advance Payment: If you simply ask your potential guests to make the payment when they arrive, there are higher chances that might not turn up or cancel the booking. They may also pay you through a check that needs additional time to be cleared. Thus, you must make it a point to ask for at least 25% of rent as a deposit at the time of booking. The rest of it can be paid when they arrive.
For more tips on how to successfully rent your vacation home in Corpus Christi, contact The Rental Management Company at (361) 949 -9050 or visit our office at 14613 South Padre Island Drive, Corpus Christi, Texas 78418.