Monthly Archives: February 2018

Short-Term Management Strategies: Considering Your Options

Managing a short-term rental property is a lot of work to do on your own. From booking to cleaning to troubleshooting issues with guests, it’s nice to have some help along the way. Many homeowners are now deciding to partner with a rental management company.

But the decisions don’t end there—when choosing between rental companies, you have a lot of options. It’s important to look at each company’s strategy and consider what that means for you, your property, and your guests. We’ve outlined the three main rental management strategies below.

 

FIXED

Best for: homeowners who want consistent monthly income.

The fixed strategy allows the rental company to promise the homeowner a certain amount of revenue per month, no matter the number of bookings that month. The rental company pays you this set amount, then takes the rest. This means that you’ll make the same amount in the slower off-season as you will during more popular months. Overall, homeowners don’t maximize their monthly revenue with this strategy because they don’t receive the benefits of major spikes during the on-season. The scope of services provided by rental companies using the fixed strategy varies, but in general it is not comprehensive. The homeowner is often required to take care of services like guest correspondence and solving problems during a guest’s stay.

COMMISSION

Best for: homeowners who want their monthly revenue to reflect booking trends.

The commission-based strategy involves the rental company taking a certain percentage of every booking. This amount depends on the company and location, but typically falls between 20-50%. Using this strategy, the rental company and the homeowner experience highs and lows as a team. When there are more bookings for a certain month, everyone benefits. If you decide to go with a rental company that utilizes this strategy, it’s likely that a greater range of services will be covered than with the fixed strategy. However, you may still be expected to coordinate services such as cleaning, maintenance, and restocking the property between bookings.

TURNKEY

Best for: homeowners who want to maximize their revenue and minimize their workload.

The turnkey strategy is for homeowners who want their rental company to handle all of the tasks that come with maintaining a short-term rental property. Sometimes used in conjunction with the commission-based strategy, the turnkey approach covers all aspects of a booking, from answering initial inquiries to check-in to troubleshooting to turnover. Many homeowners who live out of state or frequently travel abroad choose this method while they’re away. Others live down the street and want a more hands-off approach to hosting. Although this strategy can be more expensive, the additional monthly revenue gained and the peace of mind that everything is covered makes it well worth it.


We handle every detail of your rental so you don’t have to. Click here to see the full list of services offered by Effortless Rental Group.

How to Make Your Listing Stand Out and Earn More 5-Star Reviews

The short-term rental industry is booming worldwide, and Colorado homeowners are enjoying the profits. Airbnb hosts in Colorado made $183 million in 2017 alone, a 68% increase from the year before, according to The Denver Post’s recent article.

More properties are listed on Airbnb and other popular rental sites like HomeAway and VRBO every day. But with more properties comes more competition, which makes it crucial that your home stands out. Take a look at our list of amenities to add to your home to make your listing shine and enhance your guests’ experience—meaning more 5-star reviews for you.

 

1. Recreational items appropriate to your area

If you live across the street from a park, include some Frisbees or a croquet set in your home. If you’re close to a river, kayaks or inner tubes are great additions. Guests will choose your property over others because of nearby sites and attractions, and will appreciate that they don’t have to buy or rent equipment to enjoy these areas.

2. Modes of transportation (or information about how to get around)

Many of your guests will arrive without a car, especially if your home is in an urban area. Having bikes on hand will allow your guests to easily roam. Cheap bikes from Walmart or Target will do the job. If you can’t buy bikes, at least provide some details about how to get around in your area. Check out our article on exploring Denver without a car for some ideas.

3. A stocked kitchen

This goes beyond simply having dishes and utensils. Make sure that your kitchen is stocked with other essentials like olive oil, spices, and balsamic vinegar. Add a box of pasta and your guests will have everything to make a quick meal—especially useful for those who arrive late at night. If there’s a food item that’s local to your area, it’s a nice touch to include that, as well.

4. Ways to access attractions nearby

To go above and beyond, leave some tickets or passes that allow your guests to visit spots in your area for free. This could simply be a library card for renting books and DVDs, or something a bit more extravagant like free tickets to a museum or an access card for a rec center. This is a great way to use the free guest passes that come with many monthly memberships.

 

If you have any of the above amenities in your rental property, be sure to list them in your property listing. These items will not only attract prospective guests, but will also make their stay in your home the best it can be (great for them) and inspire them to write you a 5-star review (great for you). You’ll have that Superhost rating in no time.