Unraveling the Truth: Debunking 5 Common Short-Term Vacation Rental Myths
Have a property in a prime location?
You may be thinking about renting it out short term to make the most of it.
And why wouldn’t you? You get to make money with a property you already own through guests that are usually not going to stay more than a couple of weeks, and you get to stay and enjoy it whenever you like, any time of the year.
It's a perfect situation in many senses and a great way to make the most of your assets. That said, it's very easy to be put off renting your property and to believe it's a bad idea.
That's what everyone's saying, isn't it?
With the rise of platforms like Airbnb and VRBO, there have been so many opportunities mixed with horror stories that there's so much information to take in. And out of this, many short-term vacation rental myths have made their way into the mainstream.
As big believers in the short-term rental market, we're here to set the facts straight while debunking some of the biggest myths around. Myths that can stop you from making the profit you could be pocketing each and every time you rent your property out.
So, to separate facts from fiction, let's jump into and share everything you need to know to ensure your success in the Aruba short-term rental market.
Myth 1: The market is oversaturated and just isn’t profitable anymore
Absolutely false.
While it's true that short-term rental has gone up in popularity over the last few years (an estimated 11% growth is expected over the next eight years), there's still more than enough room for you to make some money.
The truth is the short-term vacation rental market is still growing and profitable. More and more people are looking for rentals to base their locations on, and there's really just something for everyone.
When you take time to select the right property, offer unique experiences, and focus on excellent customer service, you can quite easily differentiate yourself from the competition and achieve success in the industry.
Even doing these three things on a basic level will put you far above most other rentals using sites like Airbnb and so on, so there's really nothing to worry about.
Myth 2: Legal regulations make short-term rentals too risky
First, the regulations surrounding short-term vacation rentals vary greatly by location, so make sure you're looking this up in your local area.
Secondly, and a big however, this doesn't necessarily mean that investing in the industry is too risky.
There are plenty of low-regulation markets out there if this is something you're worried about that offers great opportunities for investors. That said, even in highly regulated areas, there are plenty of profitable investment possibilities.
You just need to make sure you're ticking the boxes.
By researching local regulations, ensuring compliance, and staying informed of potential changes, investors can mitigate risk and find success in the short-term rental market.
But, if you want to make your life easier and this is too off-putting, the simple solution is just to use a vacation rental management service. Sign your property up, give them the dates you want to rent from, and they'll take care of the rest - legalities and all.
Myth 3: Short-term rentals are difficult and time-consuming to manage
While there's no doubt that managing a short-term rental property does require time and effort, it doesn't have to be an overwhelming task.
The easiest way to make your life simple is to use a property management company that specializes in short-term rentals and can handle everything, from marketing and bookings to maintenance and guest relations.
By partnering with a reputable property management company, investors can streamline the management process, freeing up their time and ensuring a positive guest experience.
Myth 4: Short-term rentals don’t provide steady income
Although short-term rentals can experience fluctuations in demand throughout the year, they still provide a steady income stream for investors who plan accordingly.
By diversifying your portfolio with properties in various locations and utilizing dynamic pricing strategies, investors can optimize their occupancy rates and maximize their rental income. Working with a vacation rental company that prioritizes a first-class guest experience, including in-person check-ins and check-outs, concierge services and 24/7 guest support, will also drive great reviews, more bookings, and more revenue.
Additionally, off-peak seasons can be an opportunity to perform maintenance and upgrades, ensuring the property remains attractive and competitive in the market.
When you approach the short-term rental process with an adoptive mindset where you take your time to figure out the best, smartest approach, you can really end up being quite savvy with how everything turns out.
Myth 5: Vacation rental properties have lower appreciation rates
Contrary to popular belief, vacation rental properties can have comparable, if not higher, appreciation rates than traditional long-term rental properties.
Factors like location, amenities, and overall demand can greatly impact a property's appreciation potential.
By carefully selecting properties in desirable locations and maintaining their condition, investors can see significant appreciation in the value of their vacation rental properties over time.
Ready to get started?
Here at Bocobay, we're experts in our luxury vacation rental management services, taking your property and handling every single aspect of it. From legal regulations and pricing to marketing and managing your guests, we simplify your life.
Get in touch with us today, and get ready to sit back and watch the revenue roll in.
