How to Rent Vacation Homes in Seasonal Markets

How do you rent vacation homes in markets that have a certain primary rental season? Are these still good investments? When searching for the right vacation rental home to buy, you must consider the type of market you are dealing with and how frequently vacationers visit that spot. If the location is hot and has frequent visitors around the year, the property will seem more lucrative. However, even seasonal properties can be very profitable investments.

There are certainly many areas across the world that experience a high season of activity for tourism. A wintery ski lodge with peak activity during winter months when the snow is ideal may have slow activity in summer and fall months. A lakeside home might be attractive for boating and fishing in spring and summer and be less attractive during the cold winter months when boats are in storage.

This appears to present a challenge, since you may wonder if there will be enough renting season to afford the property. In fact, homes in seasonal vacation areas can not only be affordable, but profitable. It is important to consider what kind of people visit the area, how popular it is during those times, and what kind of rates they are accustomed to paying for accommodations. Even if the prime renting season is short, the rate and quality of clients could be high.

Research the competition.

It can be helpful to research average hotel rates for the area and how they fluctuate during the year. If you see a trend of steady high rates during certain periods, it may indicate higher demand. Are there many hotel options in the area? Do their rates increase dramatically during busy season? What is the standard room size? Considering your vacation home likely has more amenities than the average hotel room, you can start to imagine competition for lodging.

Next, review listings on vacation rental websites like HomeAway, VRBO, and FlipKey to see what similar homes are listed. Look for a home with a similar size and location, look up their rates, and view the reservation calendar to determine if it is popular. Is the most popular home consistently rented for the busy season? Do homes with the top reviews and the most rentals have similar rates?

Consider local events of influence.

There may be local events that affect demand for a location as well. Even in a short season, one high demand event might create major activity in the area. Rates usually increase with demand. If there is a popular music festival in the city and the home is in a hip area where festival goers would be happy to stay, the demand could increase the rate to double or more. Find out about local events and popular activities by researching the local Chamber of Commerce, arts groups, city websites and even forums on vacation rental websites. Holidays count, too. It is not uncommon for vacation home owners to charge a high peak rate for popular weeks like Spring Break or Christmas.

Take advantage of peak times in your online listing.

When you advertise your rental property online, try these tips:

• Update the title of your listing to mention a local event.
• Upgrade your listing to a premium ad the month before the prime rental season.
• Describe the best features of your home that contribute to the popular season, like a boat lift for a Summer lake home or a bicycle for a Springtime retreat.

Partner with other businesses.

Chances are, if you are trying to benefit from the seasonal market, so are other businesses in the area. Think about what other businesses could be helpful to your guests and try partnering with them to get more exposure. If you are close to a popular wedding spot, approach local wedding venues and wedding planners to recommend your place for family accommodations. In exchange, you can offer to keep their information in your house information booklet or link to them on your website. Other possible partners may be grocery delivery services, horseback riding services, surf shops, ski resorts, boat rentals, and golf cart and buggy rentals.

Pictures and reviews matter.

If your vacation home does have a particularly short rental season, you certainly want to maximize the opportunity to get the most rentals during that time. Always be aware of the quality of photos of your property and the ratings and reviews on your online listings. Keep your online listings and website updated frequently and remind your guests to leave their positive review.

Create an impression and create memories.

One of the best things I did for one of my properties was to buy a guestbook and ask my guests to write a personal note about their stay. The result has been many very heartfelt notes left behind for not only my family to read, but also for other guests. There were delightful memories described, including a marriage proposal that happened right in my living room. Simple gestures like this create a lasting impression with people when they stay. They are more likely to leave a 5 star review and more likely to want to rent again next year.