Short-term rentals make up 20% of the entire rental market globally.
Short-term rental management is managing and optimizing short-term rental property listings. It brings in extra income for homeowners while giving guests access to unique properties.
But there are things to think about before managing short-term rentals. Consider California regulations, insurance implications, and the time you want to spend managing the property.
If you are wondering what to consider before becoming a short-term rental manager, this short and simple guide is for you.
1. What's Your Long-Term Goal?
Before managing a short-term rental property, you need to ask yourself why you want to do it. Are you looking for extra cash?
Are you hoping to build a business around managing short-term rentals in the San Francisco, California area? The answers to these questions can help you determine if the short-term rental industry is right for you.
2. Do You Have the Space?
Many people think that managing a short-term rental property is just like managing a traditional rental. However, this is not the case.
You will need to have space for guests to live, park their cars, and store their belongings while they are in town. This can be difficult to do if you have a small home or apartment.
3. Are You a People Person?
If you are a first-time real estate investor, managing a short-term rental property can be stressful. You will need to deal with guests regularly who want things done differently than you do them.
You will also need to handle problems such as lost keys or complaints about the cleaning crew. If you don't enjoy talking with people, this might not be the best job for you.
4. How Will You Set Your Rates?
You can charge whatever you want, but keep in mind that the market will dictate what people will pay. If your rates are too high or too low, guests may choose another property instead.
Find out what other properties in your area are charging by looking at their websites and reading reviews. This will give you an idea of what kind of price range is appropriate for your market.
5. What Do You Need to Get Started?
To run a successful vacation rental business in the San Francisco, California area, you need to have the right tools. You'll need an online booking system, some local marketing strategies, and a way to track your income and expenses.
It's also important to have homeowner's or renter's insurance in case something happens on your property. These are the most important things you need when starting a vacation rental business.
Short-Term Rental Management: Know What You're Getting Into
The short-term rental management business can be lucrative, but it's also difficult. You need to take care of any problems quickly so that your guests don't have a negative experience.
You also need to handle the day-to-day tasks of running a business, like booking new guests. For the right person, a short-term rental business is a great way to make money.
PMI SF Peninsula is a full-service vacation rental management company that will help you get started. Contact us today to get started!
