8 Tips to Increase Your Short-Term Rental Revenue

1. Remodel

2. Furniture Upgrade

3. Professional Photos

4. Excellent Communication

5. Hire a Professional Cleaner

6. Know Your Market

7. Use Multiple Platforms

8. Hire a Property Manager

Remodel Your Property

The best method to increasing revenue for your short-term rental isn't always the quickest or easiest. Remodeling your property can seem like a daunting task, but studies have shown that an upgraded property can fetch up to 30% more than a comparable, outdated property. However, not all updates are created equal. Minor cosmetics will definitely help your curb appeal, but may not justify a huge increase in your nightly rate.

Updating your home can be as simple as replacing door and cabinet hardware, or by updating shower and sink fixtures. These improvements can be done fairly easily by most, regardless of experience. If you're looking to bring in a little more revenue by upping your nightly rate, new paint or countertops could warrant the increase. I took things a step further with my vacation rental by replacing the floors with LVT, as well as fresh paint throughout. After updating my unit, I increased my nightly rate by 40%.

Upgrade Your Furniture

What do guests leave reviews about after staying at a vacation rental? You guessed it... The furniture! Putting a little more thought and money into the mattresses can make a huge difference in the type of response and reviews you receive. Afterall, one third of a guest's stay is typically spent sleeping. By providing a comfy place for your guests to lie down after a long day exploring the local sights, you allow them a good nights rest, giving them the energy to continue adventuring and enjoying their stay.

Along with upgrading the mattresses, providing quality furniture that will last is a game changer. Not only by providing comfort to your guests, as well as a sense of style and uniqueness, you give them an experience they won't soon forget.

Hire a Professional Photographer

This step is probably the most underrated action in boosting your STR revenue. Professional real estate photos will show off your property, highlighting its top features. By showcasing your property in a professional manner, you emphasize your attention to detail to your future guests. Not only will your property appear clean and crisp in professional photos, but the photos will be taken at the perfect time of day, bringing out the essential features of your home.

The upfront costs weighed against long-term benefits makes it a no brainer. Most professional real estate photos will cost anywhere from $200-$500, but will allow you to up your nightly rate just by presenting your unit in the ideal fashion.

Excellent Communication

One of the most important things you can do to maintain a high nightly rate in comparison with your competition is to maintain a high overall review rating. The easiest way to accomplish this is to become a professional communicator. Be upfront with your guests and respond to their inquiries quickly.

Honesty and clear communication are the most important factors. Treat your guests just as you would your friends or family staying in your home. Your guests will appreciate it and hopefully reward you with a positive review. We have found over the years that the more you communicate, the better. At a minimum, share your mobile number so guests can reach you directly. If any urgent issues arise, act on them promptly, if possible.

Hire a Professional Cleaner

The easiest way to increase your nightly rate is to hire an experienced cleaner. Ensuring that your cleaner is keeping your place in tip-top shape is a surefire way to maintain your high rating and even boost your nightly rate over time by brining in 5-star reviews.

A cleaner will not only keep your property in excellent condition, but they can also help you manage your unit by keeping you up-to-date on its condition. Some cleaners will even restock consumables upon request, or may even replace worn out towels and sheets for an additional cost.

Know Your Market

This tip can't be stressed enough. By knowing your market, you are ensuring you are fully capitalizing on your earnings potential. Knowing and understanding the nightly rate for comparable units in your area is key to staying competitive. You also want to make sure you are staying on top of the events schedule in your area, so you know when you can potentially charge more during high-demand times.

Use Multiple Platforms

If you are self-managing your property, one way to increase your exposure and revenue is to list your property on multiple hosting platforms. Different age groups and demographics use different hosting platforms to search for vacation homes. By only using one platform you are potentially restricting your exposure to certain markets and thus severely limiting your earnings potential.

Some platforms offer better rates and fees than others, so it is important to do your research and shop around before settling on hosting sites.

Hire a Property Manager

If you are looking to take more of a hands-off approach to managing your property, then hiring a manager to do all of the leg work and day-to-day management may suit you better.

A property manager will handle all of the scheduling and interfacing with guests, and may even help in the initial setup and layout of your property. They will also manage the cleaner and any required vendors, as well as market your property using multiple platforms. Property managers should know your market well, allowing them to maximize your property's earnings potential. A good property manager will have the necessary experience and communication skills to ensure your guests have a stress-free stay, and guarantee your property maintains positive reviews and a high rating.