Since we’re all about vacation housing here, one of the things we thought about tackling was the topic of vacation rental properties in destination areas.
What does that mean?
Well, think about all the places people decide to go for vacations.
Beaches, mountains, downtowns, old cities, etc.
And you don’t have to look at already hugely popular destination areas. What about some that are up and coming?
Like Marche, Italy, for example. It was historically a poor community, but it’s vacation housing popularity is rising along with its tourism because of some of the history and beachfront properties.
Because of that, there may be some properties that are either up for sale or the owners aren’t accustomed to renting them out yet.
That means there’s an opportunity to either buy some property with the intentions of turning them into destination vacation rentals or approaching the master-lease option like we mentioned in the previous post.
Generally, with properties like these, people are going to be tourists coming in from other countries.
That means they’re likely to stay for weeks at a time, and with that comes higher cleaning and service fees to put towards the profit margin.
Additionally, it affords a higher brand-building experience.
The more things you add to make the visitors’ stay even better and higher quality, the more they’re likely to remember your stay, recommend it, and help build the notoriety of your brand for you.
Then you’re essentially building a “hotel” brand that can be used in many locations.
What do you think if people specifically look for your brand’s vacation housing before anywhere else? Then if you have multiple spots, they’re more likely to stay loyal to you before they branch off and find some other stranger’s property to stay in.
It’s also important to provide as much geographical information as you can about areas.
Like, what is the walking distance to stores, beaches, points of interests, and night life spots.
What is the cost of using uber-like services to get around, or any other benefits you can highlight for people that may have not even considered as potentially affecting their stay.
This requires a bit of research to learn the area really well and then some test data with people that stay there the first few times so you know what people are looking for, enjoy, and dislike, so you can frame that for them and highlight it when future guests are looking for a place.
So, the first thing to do is start coming up with a list of locations that might be worth checking out.
If you’re someone who travels a lot or you have an investment group that’s looking to invest in properties like this, then you may want to spend a week at a time checking out these different areas, looking at properties, and getting to know the lay of the land.
Be sure to also investigate the local laws to see what they may have in place regarding short-term rentals. You’ll also want to look at HOA or similar organizational bylaws that may have some restrictions.
The last thing you want is to invest in a property only to find out that your original plan will get completely blocked by a local government.
We’ll keep looking into more and more ideas about vacation housing and rental properties, so be sure to check back often, or get signed up on our newsletter for latest updates!