Renting out your home as a holiday rental has become a great way of making some extra cash. Thanks to the rise and popularity of vacation rental sites such as the likes of Airbnb, HomeAway, Tripadvisor, Booking.com and more. Vacationing has never been made easier, swifter, and cheaper these days. Additionally, you become your own entrepreneur and real estate mogul. Apart from managing your own rental business, you can also meet people and make friends from all over the world.
You may consider renting out your home or a spare room in your home for short-term stays when you go on a holiday yourself and would like to make extra money to cover for the expenses or travel costs while you are away. Also planning to invest in a vacation property requires considering a lot of things before making the final decision to get into this type of business.
While vacation rental sites work at their best, generating you extra money out of your property and finding new friends, inevitably, there are stories of horror from guests who have caused more damage than income. Hence, renting out your home may not be for everyone and there are accompanying risks when venturing out to a short-term rental. However, fret not as we navigate this exciting business venture together and factor-in all the things you need to consider when converting your home to a Holiday rental.
Location location location
The first thing you have to consider is the location of your home. As guests, people always choose locations with good proximity from the airport, travel time to the city center, and availability of public transportation. Is your property near the Metro, are buses available in the area, is there a supermarket close by? The location is very important especially if you want to utilize it as a source of income. It will help determine the number of people visiting your home and the price of your rental.
Dubai has a lot of potential in developing holiday homes as the city is a popular tourist and business destination. It has an established public transportation system in place and most areas are accessible especially to the city’s major business districts such as Downtown Dubai, Business Bay, Dubai Marina, and Jumeirah Lakes Towers. Owning a property in Dubai and offering it for rent would also be in demand throughout the year even before, after, or during the summer season.
Preparing your home
People nowadays are seeking ways to explore a certain city and live like a local with Instagram-worthy spaces whether it’s for work or travel because who doesn’t love a good picture? Needless to say, it is best to invest in a small estate that you may upgrade and renovate later on.
As a Host, you may want to invest in a safe or lockable cupboard to secure valuable items. We want to keep personal things hidden and untouched from other people while we are away.
Sites like Airbnb have basic requirements when listing your home. The Host is expected to provide bed linens, towels, cooking equipment, and wi-fi access as part of their nightly rate. You may also want to go the extra mile to provide the best experience to your guests.
Another thing to consider is hiring a person or staff who can manage incoming guests and look after your property as well. This would depend on the volume of guests and the number of rentals you are listing and must be included in your budget plan as well. You may also want to consider adding a cleaning fee on top of your rate.
Listing your home
Choosing your home listing website incurs various costs and rules you have to consider. For instance, Airbnb charges hosts 3 percent of the final sum paid by guests and guests also pay a fee of around 6 – 12 percent. Tripadvisor charges the same percentage commission to hosts but does not charge guests a fee. Booking.com charges a commission on an average of 15 percent, however, it does not charge guests a fee. Therefore, it pays to research and read up on the listing sites’ terms and conditions compare the listings price to determine your rental rate.
When listing your property, it is also important to specify which rooms guests have access to and which are off-limits especially if you are only listing a portion of your home rather than the entire property.
Good photographs speak volumes. You want to show the authenticity of your home at its best light. So, it might also be worth investing in a professional photographer to get the best shots.
Vetting your guests
Holiday rentals, as such it is in other business, entails trust. Vacation rental sites may state in their policy that it has “no control over the conduct of hosts/guests and disclaims all liability.”
It is important to correspond with your potential guests in advance and ensure to understand the type of holiday they are planning. Also, spend ample time to coordinate with your guest, check their profile, and read on the comments and ratings they have received from other hosts. It is expected that both hosts and guests observe proper conduct.
Being a good Host
Being a good host will reflect in your reviews, comments, and recommendations from guests! As a host or homeowner looking to rent out your home, there are certain codes of conduct expected from you such as providing a clean and fully-equipped space for your guests.
It also adds more professionalism if you respond to your guests’ queries promptly and friendly. You are also expected to take full responsibility for the comfort and safety of your guests and your home.
Converting your home into a holiday rental can be tedious but is also an exciting process. Take the time to plan your holiday rental business and make a decision for each factor. Short-term rental platforms work at their best, and you can end up making new friends from all over the world and making extra income from your business.