To keep your vacation rentals fully booked start with your EXPENSES!  WHAT?  Keeping your vacation rentals fully booked depends on several factors including your location, your peak seasons, your advertising efforts, the property, amenities, furnishings and your rental rates.  Do you notice how some availability calendars are consistently booked for the peak seasons and blank during the off season?  Exactly!

The secret to your vacation home rental success may be here!  Secret # 1 – Many experts suggest that an owner’s goal should be to generate enough rental income in roughly 22 PEAK weeks to cover all related annual expenses for that given vacation rental.  For example, if your San Diego, California 1 bedroom condo costs you $24,000 annual in mortgage expense, $3000 in utilities, $3000 in association dues, and $3000 in miscellaneous expenses for a total of $33,000 per year.  Your PEAK rates would be set at approximately $2750 weekly or $6600 on average for monthly income.  Dependent upon the demand for your condo you may be able to charge more or less and cover your annual expenses.  Therefore, any other weeks or months throughout the year would be a profit.

Many rental properties that are continually booked are simply because the demand out strips the supply.  However, you will see that even in smaller markets, some vacation rental owners flourish while others struggle.  OK - Secret # 2 -offer a superior product (vacation rental experience) at a very competitive price.  In other words, if you can rent a room at the Four Season’s for the same price that you would pay to stay at the Hilton….most everyone would choose the Four Season’s every time.  That being said, do not “give away the farm” but do offer very competitive rental rates, offer a vastly superior vacation rental experience and the combination of repeat visitors and referrals will catapult your vacation rental business to a higher level.  But remember Secret #1 is THE Most important - 22 PEAK WEEKS priced correctly!

This all sounds very easy in theory, but is more difficult to deliver.  You need to be sure that you do not price your rates too low or too aggressive.  A common error in judgment, especially for new owners, is the tendency to “fall overly in love with their vacation rental”, conclude that none other compares in the market, and come to the conclusion that it should command much higher rental rates.  Others, will give away the rental rates just to be sure they have future bookings, only to find out that they could have rented the property at twice the rate and 10 times over because the peak season has arrived!  It may take a season or two to dial your rates into an optimum level. 

If you are not fully booked in the peak weeks and months then you may be missing out.  If you set your vacation rental peak weeks correctly then you will have a much more relaxing off season!  Do you have any helpful hints that you can share with us?  Our readers would love to see your tips here!   Simply leave us comment – Thanks!

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