Managing a short-term vacation rental is not easy. To do it right, takes a lot of time, energy, and cost! If you currently have a STR property, or are thinking about buying one, there’s one thing that matters. You want to get the highest potential ROI on your property. Right? Great, keep reading.
One mistake most new STR property owners make is deciding to manage things themselves. Usually, this decision is made to cut costs and add to their bottom line. The problem with this approach is two-fold. Not only is managing a STR a huge time-suck but doing so can actually leave you with lower overall profits than if you hired a good management company in the first place.
Ok, I know what you are thinking… how am I going to make more money by paying a 30% management fee in addition to my property expenses?
Enter “Super Duper STR Revenue Booster 9000!” This ultra-fancy ai machine hypnotizes guests into paying the management fee for you. Just kidding. If only it were that easy.
While we don’t own a machine with such a fancy name, we indeed have STR Revenue Boosters built into our business. These boosters contribute to your bottom line and, in many cases, can actually net you more money even with our management fee. Not to mention all of the time you will save to do the things you actually enjoy!
Short Term Rental Revenue Boosting Factors
There are a number of factors that have been proven to contribute to increased STR revenue. Some of these include increased bookings, higher nightly rates, and improved occupancy rates. For detail on how this impact your potential revenue, keep reading.
Estimated booster of 20% to nightly revenue
Based on a 2021 analysis of earnings on Airbnb across 5,000 global listings, it was found that listings which were professionally photographed received up to 20% more revenue and 20% more bookings overall. In addition to that, photos are one of the top 3 reasons guests choose to book after location and price.
Estimated booster of 81% to occupancy rate w/ 60% more revenue per available day
Being a Superhost on Airbnb means we are consistently recognized for being exceptional hosts to our guests and maintaining a higher set of standards than your average host. Aside from pride and a badge of honor, Superhosts, on average, earn 60% more revenue than standard hosts per available day through an 81% higher occupancy rate.
Smart Pricing Optimization
Estimated booster of 22.6% (and beyond) in overall revenue w/ 5% increase to occupancy rate
Smart pricing is all about using booking data, including local travel indicators, to price each night for the highest revenue potential. Through hundreds of indicator factors, we are able to predict demand, and price each available night accordingly. We also use the same factors to help fill open days and last-minute bookings to increase the overall occupancy rate.
While not part of our revenue calculator, it’s important to consider the things that can influence the marketability of your property. This means everything from picking the right color of paint to having the right furnishings to attract your ideal target guest. If you are not sure where to get started, check out our ultimate guide to furnishing your Airbnb.
Revenue Booster Model
Using the revenue-boosting factors mentioned above, and our history of existing bookings, we apply a formula to calculate what your additional “boosted” revenue would look like when managed by us. This is a much more conservative estimate than all of the figures you see above, but in most cases, you’ll likely come to find that even after our fee, you still make more!
Though our exceptional customer service and commitment to guests won’t automatically net you more revenue, it certainly encourages others to book and continues to help your property rank. We pride ourselves on providing the best customer service and striving for 5-star reviews from our guests, and owners alike.
Ready to see how this impacts your bottom line?
Check out our Short-Term Rental Income Calculator now to estimate your vacation rental potential and find out if it makes sense to hire us to manage things.