SHORT- TERM RENTAL - PLANNING IT ALL OUT

SHORT-TERM RENTAL

- PLANNING IT OUT

J ENNIFER GAINE R

So, you decided to jump? Welcome to the wagon ride of Short-Term Rental, hereafter referred to as “STR” . We are glad you have decided to join us, and thousands of others, to provide safe, secure, and beautiful accommodations for the temporary housing needs of so many.

Now that you have made the decision to jump on, what is the first necessary step? Your first thought may be to run out and get your first 2-3 properties and start making income as quickly as possible. You could totally do that, however you will likely find yourself with a mess in short order.

Whom are you renting to? Obviously people, but what people? You can’t say “everyone”; that is just too wide a pool to manage. You would not try to make a cake without a specific recipe, so why on earth would you invest thousands into setting up a business without first establishing a demographic?

If you are not viewing this endeavor as a true business, you are looking at it wrong. Whether you have one unit, or 20-30 doors (units), you are running a business, and should treat this as such! As the saying goes, “if you treat it as a hobby...it will pay as a hobby, if you treat it like a business, it will pay like a business” .

Your first order of business should not be to run out and start grabbing up units. Why not?

Well...let’s say you scored a great deal on three units in a large city. You assume they will stay rented all the time due to their location and accessibility. That could very well be true, but if your design style and approach is more for a person looking for a retreat from the city - you will find people passing your unit for the next without hesitation, no matter how pretty it is or how many amenities you offer.

People choose STR over hotels most often for convenience and accessibility, but what makes them choose YOUR unit over someone else is how it appeals to their personal taste, style, and desire. This is why building and knowing your avatar is so essential. You need to know the person you plan to rent to, and build the units for their needs.

As referenced in “Vacation Rental Marketing: Using Personas to Help Increase Your Bookings” , an avatar (aka persona) is “a made-up, generalized character that encompasses the various goals, needs and observed behavior patterns of your ideal guest. ” You want to determine who your ideal client is. What is their age? What is their career? Are they married or single? Are they traveling for business/couples retreat, or are they bringing the whole family?

https://www.vacationrentalformula.com/vacation-rental-marketing-using-personas-to-helpincrease-your-bookings/

What are their age and income level? How often do they travel? What will they need while away from home? The list could go on and on, but having at least a general understanding of your future clients will assist you to set the property up accordingly, and locate units in the proper locations for their needs.

This is just one step of the Planning stage, but take heart - you have resources to help along the way! You can definitely check the wide world of the internet, but why not partner with people who have already been riding on the wagon and will be happy to share what they have learned so far? Give us a shout here at HSRA, and we will make sure you get linked up with the information, tools, and network you need to help ensure your successful start, from the beginning!