How to Start a Vacation Rental Business For the Family

Summer is coming, and as the kids are finishing up another school year, parents begin to plan for the annual family getaway.

Summer is one of the busiest times for travel, and if you own a vacation rental business or property, you have most likely been preparing for an onslaught of renters to come through your house this season. 

While you have done everything in your power to make sure your rental property is clean and welcoming, have you considered whether it is family-friendly? There are plenty of options for rentals with Airbnb and VRBO, and millions of families per year rent out a vacation home.

What is a vacation rental?

A vacation rental is a furnished apartment, house, or other type of accommodation that is rented out to tourists for short-term stays, typically as an alternative to a hotel. They offer travelers a chance to experience a more local feel and often come with more space and privacy than a hotel room.

Here are some key benefits of vacation rentals:

• Kitchen access: Many vacation rentals come with a fully equipped kitchen, which allows guests to save money on eating out by preparing their meals.

• Local experience: Staying in a vacation rental can give you a more authentic feel for a place, as you’ll be living in a residential neighborhood and not a tourist area.

• Types of properties: They can range from budget-friendly studios to luxurious villas with all the amenities.

• Rental terms: They are rented out on a short-term basis, nightly or weekly depending on the location and property.

• Benefits for travelers: Compared to hotels, vacation rentals offer more privacy, space, and sometimes the ability to cook meals in a kitchen. They can also provide a more local experience.

• How to find them: Popular websites like Airbnb, Vrbo, and Booking.com allow you to search for vacation rentals in various locations.

How to start a vacation rental business?

Starting a vacation rental business can be a great way to turn your property into income. It involves planning, and effort and can be rewarding if done right.

Here’s a general roadmap to help you run your vacation rental like a business:

1. Planning and Research

• Business Plan: Create a roadmap outlining your goals, target market, and how you’ll manage the business. This will help you stay focused and identify potential challenges.

• Market Research: Look into popular vacation rental locations and see what kind of properties do well there. Analyze what amenities renters look for and typical rental rates. Local regulations regarding short-term rentals are also crucial to research.

2. Securing the Property

• Buying vs. Renting: Decide if you’ll buy a property specifically for rentals or use a spare property you already own. Consider rental arbitrage, where you rent a property with a traditional lease and then sublease it out for short-term stays.

• Location, Location, Location: Choose a property in a desirable location with good access to attractions or amenities that tourists would be interested in.

3. Getting Ready to Rent

• Furnish and Decorate: Make the space comfortable and inviting for guests. You don’t need luxury items but focus on functionality and a clean, modern aesthetic.

• Legalities and Insurance: Research any licenses or permits required to operate a short-term rental in your area. There might be zoning restrictions or safety regulations to comply with. Obtain any licenses or permits required by your local regulations. Get proper insurance to cover yourself against potential liabilities.

4. Listing and Marketing

• Professional Photos: High-quality pictures showcasing the best aspects of your rental property are essential to attract guests.

• Listing Platforms: Create listings on popular vacation rental platforms like Airbnb and Vrbo. Highlight the unique features of your rental and craft compelling descriptions.

• Marketing Strategy: Consider social media promotion and target your ideal guests.

5. Managing the Business

• Guest Communication: Respond to inquiries promptly and provide clear instructions for booking and check-in. Be available for guest’ questions or concerns throughout their stay.

• Guest Experience: Strive for a 5-star experience by providing clean and well-maintained space, basic amenities, and a touch of hospitality.

• Pricing Strategy: Research and set competitive rates that consider factors like seasonality, local events, and your target audience.

Remember, this is a simplified overview. There are many resources available online and from local realtor associations that can provide more in-depth guidance on starting a vacation rental business.

How to Start a Vacation Rental Business for the Family

What can you do to set your vacation rental business apart and make it more appealing to families with children? 

Well, the truth of the matter is that some properties just aren’t designed with kids in mind. Some properties have specific amenities and features made just for an enjoyable adult vacation, and that is okay. But when getting involved in real estate investing, you can’t deny the fact that there is a very large market for family-friendly vacation properties too.

So a simple vacation rental loan will get you the funds you need to purchase the perfect family-friendly vacation rental you want.

But until you find that perfect property you want, let’s explore some creative ideas to make your current vacation rental business more family-friendly and attract comfortable and happy renters all summer long!

1. Optimize Your Space

Families are likely choosing your vacation rental property over a hotel because they need more space to spread out.

Make it worth your while by optimizing your space and investing in extra sleeping options. A Murphy bed, sofa bed, or trundle would make a great addition to your vacation home without taking up unnecessary space or adding unsightly bunk beds. 

Show families, you have their needs in mind by making the most of your space and you’ll be sure to rake in the rave reviews this summer!

2. Prioritize Safety

A great way to ensure your rental property is family-friendly is to prioritize safety. Make sure everything in your building is up-to-date, appliances are working well, and locks are new and functional.

Make a family’s day by highlighting safety features in your listing such as child safety locks, electrical socket covers, or pool gates. Always set some money aside each year to prepare for regular wear-and-tear, minor repairs, or additions you may want to make. 

When you are buying a house, you must prioritize your finances and set aside money to prepare for any vacancies, repairs, and renovations you may need to pay for throughout the year.

If you are struggling with your finances at any time in the process, apply for an investment property loan to get your financial goals back on track. It is more costly than you may think to keep your vacation home safe, modern, and up-to-date for both yourself and your guests.

Having an expert help you with a financial plan can make all the difference!

3. Invest In Kid-Friendly Extras

Families will be sure to click “book now” when they see that you have kid-friendly extras made for family fun!

If you have a beach house, include chairs, towels, umbrellas, life jackets, or perhaps some toys for the kids. When they browse your listing, families can imagine their little ones playing with pool floats, frisbees, and water pistols while they relax poolside.

Bonus points if you add technology to make your home a smart home or create a game room! Big families choosing a house over a hotel are going to have a lot of kids to entertain on a rainy day. If you don’t have access to technology or an extra room for a big foosball or air hockey table, consider leaving some board games or coloring books.

4. Offer Suggestions For Family-Friendly Fun

Feel free to leave some suggestions on the fridge for family activities! After a long travel day, your guests will appreciate a note with some suggestions for food and relaxation. Parks, movie theaters, or bowling alleys are all fun local attractions that your guests might enjoy.

Offering up some ideas for family fun will personalize your guests’ experience in your vacation rental and maximize their fun! Bonus points if you compile your suggestions into an aesthetically pleasing welcome pamphlet or coffee table book!

On vacation, parents want to kick back and relax in the knowledge that their children are safe, comfortable, and happy. Encourage more families with children to visit your vacation rental home this year by investing in safety, prioritizing family fun, and adding a few kid-friendly extras to your vacation rental property!

And, of course, if your property isn’t designed with kids in mind, you can always create an additional stream of income and invest in a vacation property specifically designed with in-demand family-friendly features.

How to make your vacation rental stand out

Standing out in the vacation rental market requires a two-pronged approach: crafting a compelling listing and exceeding guest expectations throughout their stay. Here are some tips to make your vacation rental stand out in the market:

1. Listing to Impress

• Captivating Name & Description: Ditch generic titles. Craft a name that reflects your property’s unique features or location. Write a detailed description that highlights what makes your rental special.

• Professional Photography: High-quality photos are crucial. Hire a professional photographer to capture the best angles and showcase the property’s charm.

• Target a Niche: Do you have a pet-friendly property perfect for families? A luxurious retreat for couples? Identify a niche and tailor your listing to attract that specific guest.

• Optimize for Search: Use relevant keywords throughout your listing to ensure your rental shows up in searches by potential guests.

• Go the Extra Mile: Showcase amenities that go beyond the basic. Do you have a hot tub, a game room, or a stocked pantry? Highlight these in your listing.

2. Unforgettable Guest Experiences

• Personalize the Stay: Leave a welcome basket with local treats or a handwritten note. This adds a personal touch and makes guests feel valued.

• Tech-Savvy Approach: Utilize keyless entry systems and smart home features for a convenient and modern experience.

• Local Expertise: Provide a guidebook with recommendations for restaurants, attractions, and hidden gems in the area. Partner with local businesses to offer guests exclusive discounts.

• Exceed Expectations: Offer little extras that surprise and delight guests. This could be a complimentary bottle of wine, beach towels, or a basket of local jams.

• Impeccable Cleanliness: Ensure the property is spotless and well-maintained. Guests prioritize cleanliness, so make it a top priority.

By implementing these strategies, you can transform your vacation rental from just another listing to a sought-after destination that provides an unforgettable experience for your guests.