Owning vacation rental properties in Austin, TX can be a lucrative investment. Aside from being known as the “Live Music Capital of the World,” there are plenty of attractions to see, making it a perfect place for people to spend their vacations in.
While that brings in more business for property owners, that also translates to more workload such as worrying about the shifting vacation rental market, maintaining your vacation homes more often, and ensuring guest satisfaction. Managing vacation rental homes can be exhausting, which is why we’re here with a guide to help you out based on our experience in the vacation rental management business.
Key Points for Effective Vacation Rental Management
Knowing Local Laws and Regulations
The legal aspect of property management for Austin vacation rentals can get complicated, and not knowing all the involved laws and regulations can land you in serious trouble. For instance, short-term rentals (STR) in Austin are regulated by City ordinance and licensed annually by the Development Services Department Code Compliance, as per austintexas.gov.
Property managers need to apply for a license when vacation rentals are rented for less than 30 consecutive days. An STR license is just one of many legal requirements of short-term rental management. It’s best to consult experts or employ property management services to handle it.
Understanding of the Rental Market
Understanding your target market is crucial to your overall success in vacation rental management. Some of the factors you need to consider include the kind of property you have, what guests are looking for in a rental property, and what laws and regulations you need to learn about.
You can research online forums, ask fellow vacation rental property owners, or hire a vacation rental management company to apply their market expertise to your business and optimize it for better rental income.
Rent Pricing for Your Vacation Rental Homes
Strategically pricing your property can greatly affect your occupancy rates. Try to consider a pricing model based on several factors like occupancy limit, seasons, or the day of the week, among others. Compare your pricing to your competitors to see whether it is a fair difference based on the property size, amenities, or location.
Monitor real-time changes in the market since demand can change based on outside factors. Some companies have in-house dynamic pricing technology that can create a more accurate model and optimize pricing.
Branding Based on Your Vacation Home Rentals
Since there are many kinds of Austin vacation properties renters can choose from, it’s important to brand your rental business right. Is it a fully furnished luxury vacation home? Is it a great place for a big family? Is it near vacation destinations? You can do this by presenting your rental properties through various marketing channels using engaging content and professional photography. Highlight the features that you believe would be more appealing to customers.
Practicing Meticulous Guest Screening
Any responsible vacation rental property manager screens their guests to make sure they are reliable guests who abide by the rules of rental management. Since it is a short-term rental business, a vacation rental manager will have to do this more often than a residential property manager, especially if there are multiple units to oversee. You can weigh whether it's worth paying management fees to property managers and skip the time-consuming process, and it usually is.
Including Events in Your Marketing Campaign
One of the things that people visit is events, even if it’s hours away from where they live. Including upcoming events in your marketing campaign can encourage potential customers to head to your Austin vacation rentals. Your investment property would benefit from major local events, given that hotels will surely be fully booked and will have occupancy restrictions that vacation rentals may not have.
Observing Proper Cleaning and Maintenance
All the effort to capture the attention of customers will be rendered moot if the property itself doesn’t match their standards. This can be a taxing job especially since you will have to do this more frequently in short-term rentals. Austin Property Management offers these management services and conducts inspections before and after a customer rents the vacation property. All maintenance issues are taken care of promptly, and they can easily be contacted for repair orders when needed.
Listing the Amenities the Property Has
The amenities are a huge selling point for renters, and including them in your listing or marketing campaign will help you get prospective guests. Since it can get a little toasty in Austin, Texas, renters might opt for vacation rental properties with pools. You would even find that in the modern era, smart home technology can also be a valuable asset as well.
Creating a Convenient Booking and Payment System
It’s easy for a customer to back out when they realize how difficult it would be to rent a place, which is why an efficient booking and payment system can be the difference between your Austin vacation rental being rented out.
Keep in mind that even the smallest glitch in the system can be disastrous. Your guest reservations can be overbooked or payments may not come through, which is why delegating this aspect of the business to a rental property management company might be the better option.
Getting Vacation Rental Insurance
Since it's a short-term rental, there’s a real possibility that guests won’t be as mindful of vacation rentals as residential tenants would. Your properties in Austin could be more prone to structural damages, and vacation rental insurance can save you from paying a hefty price for repairs. Some insurance companies have limited coverage, so it's important to do your research first to get the proper insurance coverage for your rental property.
Practicing Guest Communication
As a property owner, it's your job to communicate with your customers to ensure a good guest experience. The job can range from attending to a maintenance emergency to responding to guest requests. This can help you get five-star reviews and attract repeat visitors as you get more bookings.
Be sure to add positive reviews to your website or social media page if you have one, as they can serve as testimonials for potential guests. You can hire a property manager to create one for you since some vacation rental management companies have the resources to make that possible.
Should You Hire a Vacation Rental Property Manager Instead?
Hiring a professional in the property management business for both short-term and long-term rental management can be beneficial to you. They can cover day-to-day tasks like property maintenance, collecting rental income, marketing, revenue management, and other responsibilities that may need legal competence. A premium vacation rental management company could be the key to optimal revenue and happy guests, especially for a new business.
Austin Property Management offers innovative technologies that can conduct digital marketing, direct bookings through a website, and an ROI calculator to see how well your business has been doing. We even have integrations with popular rental apps like Airbnb, which can help with exposure for your rental business.
