The vacation rental market has a value of $74.6 billion! It is also expected to grow at a rate of 5.3% each year through 2030.
Your property can take part in that lucrative market but only if people know it’s there. The key to getting your property more profitable is by using a Vrbo rental management company.
We have set out everything you need to know about the power of connecting with the right company. Keep reading to see how your profits can start growing with the right partner.
The Growth of Vrbo
After the drop in rentals during the pandemic years, people are getting out and vacationing again! Many are using the popular site Vrbo among others to book vacation stays.
Vrbo Size
Vrbo has listings in 190 countries and has over 2 million properties worldwide. Each of the listings is an entire dwelling like a home or condo. You don’t have to share space with anyone.
The site has over 3 million monthly visitors so getting your property on there is a great idea. If you want a property you own to make money for you, Vrbo is a must.
The Vrbo System
Vrbo uses a simple system that allows owners to post properties that people can rent. The site allows the use of pictures and write-ups for people to check out what a property has to offer.
Its rating system allows for people who have stayed at the property to leave reviews. This gives a crowd-sourced way of reviewing every property. Property owners can get fresh feedback and respond to comments from people.
Length of Stay
Vrbo is a system that is set up for short-term rentals. They don’t do yearly rentals or long-term leases. The design is for people to use the rentals on their vacations.
Two Ways to Manage Your Property
Having a property to rent on Vrbo is a way to bring in extra cash. However, there are a lot of details involved in renting your property. You have to consider if you want to cover these yourself or get a property management company.
DIY Rental Management
Managing your own rental means that all of the details are your responsibility. If you don’t have experience in rentals, you may think this isn’t a big deal.
The reality is different. If you are planning to manage your own property, here are just a few of the many things you have to take care of:
- Marketing
- Photography
- Permits and paperwork
- Communication
- Reviews and feedback
- Repairs
- Emergencies
- Cleaning
- Scheduling
Seeing a list like this makes you understand why so many owners use Vrbo and Airbnb property management. To manage a property well, you have to live close and have the time to invest in making it successful.
Most people who own a second property don’t have that kind of time. If you do, go for it! If you don’t, then consider the next option.
Vacation Rental Property Management
With the growth of short-term rentals, there has been a growth in short-term property management companies. These companies focus on helping owners with their Vrbo rental management.
Short-term property management companies come alongside and take care of all the details so you don’t have to. This is especially helpful for owners who live in a different town from their property.
Property Management Costs
Many people worry about getting a property management company because of the costs. The fee structure can vary with the different companies depending on the property and location.
Some companies work on a percentage basis. They will work for anywhere from 20% – 40% of your rental income on average. The differences in the percentages often have to do with the services offered.
Other companies prefer to work on a flat-fee basis. They base the fee on the average yearly costs and income expectations for the area.
How Vrbo Rental Management Helps You
To understand the benefits of having a property management company, you have to look at the big picture. Understand all the aspects of what they would do for you and your property.
Experience Put to Work For You
One of the best benefits of a vacation rental management company is their experience becomes yours. This is a big benefit for new owners or those who don’t have time to do everything.
The management company will have already learned best practices for all aspects of rentals. The learning curve won’t factor into your rental because you won’t have to gain experience.
Vrbo Listing Optimization
One of the biggest keys to success on Vrbo is to have an optimized listing, which is one that stands out and has increased visibility among the listings.
Your property management company can help you achieve this by guiding you to do some key things:
- Set up an instant booking for your rental, which increases the popularity
- Help you write a solid title and description that stand out
- Oversee your reviews and responses to engage with renters
- Help you create the best pictures to sell your site
These are just some of the key things you can do to optimize your listing. Your management company will give you the advice and even do much of the work for you to set it up for success.
The company will also help your listing appear on other websites where you could receive rentals from:
- TripAdvisor
- Airbnb
- Booking.com
- Google Vacation Rentals
They can even help you set up your own website so as you build a clientele, your customers will book directly with you. This can save you money because you won’t have to pay extra service fees.
More Listings = More Profits
Getting booked in multiple places and having an optimized listing are a few of the things that increase traffic. The more rentals you get, the more profit your property generates.
Many owners are finding that management companies help generate more listings, which helps to pay for their expenses. This is a benefit for the company and for you.
Extra listings cover their expenses and your time, which is also valuable. This helps your income to be more passive with less of your own work involved.
Management of the Details
There are many details involved with rentals that most people don’t think about when buying a property. Some towns have restrictions on short-term rentals and that is something you want to know about.
Many people work with potential rental management companies to help them find a property. This helps them avoid buying a property to only find out later it is restricted from short-term rentals.
Some cities will also have registration and license requirements. Your management company will know about these details and handle all of them for you.
Ratings and Responses
Ratings are one of the most important parts of your listing. You want your guests to give you glowing ratings. Staying on top of your guests so they do rate you highly is something a management company will take care of.
They will reach out to your guests and make it easy for them to give you a good rating. If you try to do this yourself, it is an easy thing to forget about with all the other details to handle.
They can also handle the questions that potential guests ask quickly because they are set up for it. Your delayed response could cause a guest to move on and not rent with you.
Emergencies Handled
When you own a property and the unexpected happens, you want to take care of it as fast as possible. If you run your place on your own and live out of town, what will you do?
Rental management companies have the experience and resources to deal with emergencies. They are located near your property and have teams that are on call to take care of problems.
If an emergency is handled fast, you get better reviews. If an emergency is handled slowly, your reviews will suffer. The ability to handle the unexpected is one of the strongest points of having a property management company.
Upkeep Schedule
When you deal with people scheduling your property, you know that things come up. People have to cancel and you could go from fully booked to having free weekends within a day.
Most people who have property they are putting on Vrbo have other jobs they do. They aren’t available 24/7 so cancellations will take time to get processed. This is less time your listing is live to find a new renter.
You want someone who will handle all of the small details when it comes to scheduling. Any slow down or lack of response for scheduling can cost you income. Plus, it can set you up for bad reviews.
Rental companies often have sophisticated software to help them take care of scheduling. This software becomes available for you and your property, making the whole process faster and smoother.
Cleaning Scheduled
The cleanliness of your property is one of the most important things to guests and your reviews. Finding good cleaners who will show up and take care of your property can become a headache.
Many property management companies either have their own cleaners or use a trusted service. This brings stability and a level of excellence it is hard to find when you manage it yourself.
You want cleaners who work fast, but also do a great job with your property. The experience of the company works for you because they have already vetted the cleaners.
You don’t have to work through many different cleaners to find the right one yourself. This process is a headache and it can also hurt your reviews. Sub-par cleaning will doom a property with low ratings and hurt its rental chances.
What to Look For in a Vacation Rental Management Company
The right vacation rental management company is not the same for every owner. Your needs are specific so you want a company that is the best fit for you. Here are a few things to consider when looking at different companies.
Market Knowledge
You want to find a rental company that has local knowledge of the market your rental is in. Whether it is a tourist area with seasons or a year-round destination, you want a company that understands your market.
Their knowledge can help open doors for you to get the best options for your property. If you need work done or paperwork filled out, their knowledge is a great asset.
Cost vs. Services Comparison
Many times, there are multiple companies that you could do business with as an owner. Prices may vary widely, but don’t just pick by price. Remember that anything your company doesn’t do, you have to do!
Make a chart and look at all the things you get for the price of each company. This will help you weigh your options and find your best fit.
Strong Reviews
Look for owner reviews and read them. Find out what the positives and negatives are for each company. This can help you have an idea of how the company will serve and take care of you.
Customer Communication
You want a company that communicates with you often. Make sure they have full transparency so you know exactly what is happening and all the costs involved.
Your Property’s Profits Increased
The right Vrbo rental management company can take care of your property for you and increase your income. When a property is optimized and busy, you will make more money.
Plus, you will have less stress because all the details will get handled.
Emperor Management Tampa FL is your top short-term rental management company for the greater Tampa area. Whether you have one property or multiple properties, let their experience work for you.
Set up a free property evaluation and find out how Emperor can help you take your rentals to the next level!
