How to Maximize Your Rental Return
Choose the Right Property and the Right Place
First of all, you need to decide on your priorities and be honest with yourself if you are buying for personal enjoyment, let your heart guide you more; but if you are looking to make a profit, focus on making a smart purchase and put personal factors to one side.
You need to consider the length of the season in your chosen, location in terms of climate, facilities and attractions. A short season could significantly decrease your profit. Also work out the typical demographic of the holidaymakers in your chosen area. Be sure that your property will appeal to these groups with its size, features and location.
Don’t rely on airline – you could be left in the lurch if the route stops. Make sure you supply holidaymakers with plenty of information on how to get to your property. Consider the unique selling points that will help your property stand out in a competitive market, and make the most of them. Research the rental market. Find a comparable property advertised with a local agent or on the internet and check their prices and how much of the year seems to be booked.
Decorate for success
Once you’ve decided on a property with these factors in mind, it’s time to make it your own. Go for quality and neutral furnishings to get as many rentals as possible. A high standard of furnishing will enable you to charge more and secure mor3e bookings. It will also be more durable and it will tend to be treated with more respect.
Cater for mass appeal when you’re buying your furnishings. .
Clean, simple and light furnishing will appeal to the largest market. Avoid either creating a bland atmosphere or making guests feel unwelcome in a sea of clutter. Locking your personal belongings away securely is also a good idea.
Think about extra touches such as Jacuzzi or hammocks; they can make your place more memorable and special. Make sure that any additions you make are cost effective.
Think about your target market and provide entertainment for adults, children or both. Consider adding some practical items such as laundry facilities and dishwasher to make guests’ lives easier and to encourage repeat business. Provide a basic first aid kit, the numbers for local doctors a safe and plenty of linen
Be a Responsible Owner
With your property ready to go, it’s time to make some steps to make sure that you are an owner whom holidaymakers like to deal with.
Firstly ensure that you are allowed to let your property on a short-term basis – check this with someone otller than the person or company selling you the property. Check community rules for otller obligations that you may need to make your tenants aware of.
Get insurance for your rental property – not just buildings insurance but also liability insurance to cover you for any damage caused by your customers. Then make it clear in your booking contract that holidaymakers are responsible for arranging their own personal travel insurance.
Your insurance policy may ask you to install certain types of locks, alarms or bars on accessible windows. Also check it for a minimum vacant period clause. For your own peace of mind as well as your insurance, it’s best to have a contract in the local area who can check in on your property regularly.
Setting Your Place
First of all, identify your target market given your location and accommodation type and then consider where your ideal customer are currently booking for their holiday – what are the alternatives to your property?
Look at the prices of these alternatives and honestly assess how your property compares. Look again at similar properties advertised with a local agent or on the internet. Note what they are charging per week, any extra charges and seasonal variations.
Think about the season for your area and make sure your pricing reflects it. Consider your overheads such as utilities and cleaning and include them in your price. This makes the pricing easier to calculate for holidaymakers.
Be sure to work out the minimum rate required to make a week’s booking worth organizing and then decide in advance of advertising how flexible you can be in terms of price – many holidaymakers will want to barter with you!
First impression count, and it can be very important to fill your first season. Consider offering special introductory deals. Make it clear why the property is so reasonable, otherwise you will leave an impression that it isn’t worth more!
Options for Letting Out Your Property
You have two main options when it comes to letting out the property. If you have very little free time to respond to enquires and deal with bookings, consider using a letting agent to manage everything. This is a good option if you don’t want to use the property often and don’t mind who stay there.
On the other hand, if you want to spent more time in your second home, avoid paying commission and be in control of who stays there, it would be best to manage your own lettings. You can do this through a range of means – and you will need to source your own cleaning and key exchange contacts.
Managing Your Bookings
The most important part of managing your bookings is your booking contract. Stating your terms and conditions in writing will allow both you and the holidaymaker to se exactly where you stand.
Always ensure you pave received cleared funds for the agree deposit as a confirmation of booking and do not send keys to your property or make arrangements until the full payment has cleared.
Ensure you have given the holidaymaker contact details for you or your local representative during the holiday, and that you have contact details for them during this period.
Give your cleaner an inventory of major items to check and them to contact you if are any problems. Taking photos of any damage is also invaluable should you need to deduct part of security deposit.
Advertising
Try promoting your property amongst your friends and family to get started, and you can also advertise on the notice board at work.
If you want to step up your advertising, consider newspapers and magazines – although this can work out at a high price the audience you reach.
Good photography and clear text about your property will always be invaluable in your advertizing. Think about your advert from a holidaymaker’s point of view; give them plenty of information and make everything as attractive as you can.
Tricks of the Trade
Always be quick to enquirers, be polite and informative. It could seal the booking for you, and even if you can’t help them this time round they may come back to you for their summer holiday next year, or recommend you to someone else.
Keep in touch with past guests; ask them about their stay when they back or keep in contact with Christmas cards. If you have any late vacancies to 6.11, try emailing all your previous visitors to offer them a special last-minute deal. They are invaluable for feedback about the property and testimonials which you can use to promote it in future. Leave a guestbook in your property for their recommendations and comments.
Keep up to date with local events and activities. These list tend to be free, so make sure your property is included.
Work together with other owners. You may be competing for the same holidaymakers but you can also work together as friends to everyone’s benefit. When you get an enquiry for a date that is already booked, suggest a friend’s property and they may do the same for you.
Keep an eye on the market – and make sure your pricing and you facilities remain up to date and competitive. Make sure your advertising is current and then sit back and let the booking roll in!
More information
info@oceanic-global.com
Disclaimer
Information provided should be used for guideline only. Please refer to our professional sales team and/or a legal advisor before buying a property in Thailand |
