Exploring Additional Income Opportunities for Vacation Rental Owners

As a vacation rental owner, you’re constantly seeking ways to maximize your property’s potential and increase revenue. While bookings are essential, exploring additional income streams can provide a stable and diversified income source. In this blog post, we’ll delve into various strategies and opportunities for vacation rental owners to expand their revenue streams beyond traditional bookings.

1. Include Add-On Options With Every Stay

Enhance your guests’ experience by offering add-on options that complement their stay. This allows you to increase your own nightly prices by saving your guests money elsewhere. Consider services such as guided tours of local attractions, wellness packages with yoga or massage sessions, or gourmet food and wine tastings. Savvy rental owners will be able to partner with local businesses and attractions by creating mutually beneficial opportunities. Consider how appealing your listing would look if you added “INCLUDES FREE (insert local attraction here) WITH EVERY STAY” or “DISCOUNTED ADMISSION TO (insert local attraction here”. You can offer to include the business on your website or in the “local favorites” section of your house manual in exchange for discounts, a season pass, or a discount code that you can offer to your guests. Be sure to let potential guests know about these perks in your listing. This not only gives you an edge above your competition by offering something that other rentals do not, but it forms relationships with local businesses that can potentially increase awareness of your rental, which leads to more recommendations from locals. Personal referrals are by far the best form of advertising.

2. Host Special Events

Transform your vacation rental into a venue for special events such as weddings, retreats, or corporate gatherings. Market your property as a unique and picturesque location for memorable occasions and collaborate with event planners or vendors to create tailored packages. Hosting events not only generates additional income but also promotes your property to a new audience. Take some time to research local venues and add an “event fee” that is competitive on top of your daily rental rate. This saves groups the hassle of finding other accommodations outside of their event, as you are able to offer the whole package. Be sure to be clear in your advertising if you have expectations limiting group sizes, quiet hours, etc.

3. Mid-Term and Long-Term Rentals

Explore mid-term and long-term furnished rental options for periods when your property may not be booked for short-term stays. Target corporate travelers, remote workers, or individuals relocating temporarily who seek the comfort and convenience of a furnished rental. Longer-term rentals provide consistent income and reduce the impact of seasonal fluctuations. With an increase in counties limiting short term rentals, this is always a good option to have in your back pocket. Just remember, that when you are offering long term rental options, you will need to research additional laws and regulations that may go along with being a landlord. If you are not interested in completely diving into long-term rentals, the “snow bird” market is a great option for popular Winter destinations for retirees, and is a great way to find repeat guests who return year after year and take great care of your property during the off season.

4. Create Concierge Packages

Attract guests by offering a concierge package. Bundle your accommodation with local experiences such as outdoor adventures, culinary tours, or cultural activities and offer guests a variety of packages upon booking. This differs from my previous recommendation of offering add-on options with every stay, as this would be something that is optional for your guests and not included with every booking. While it would require additional effort for the host/property manager, acting as a concierge to your guests is the ultimate luxury vacation option. Some hosts are in the vacation rental market simply because they love offering hospitality, and this is the perfect option for those hosts. Offer airport shuttle services (you don’t have to drive them…just arrange a driver for them), dining reservations, or pre-purchase event and attraction tickets for your guests so you can have their vacation activity package waiting for them when they check in.  Be sure that you add an upcharge for the convenience of your service in addition to the price of any tickets that you provide. Offering concierge services also requires a rock-solid refund/cancellation policy to protect the host if your guests do not have the experience they expected, if an event is cancelled, or if your guests cancel their reservation. Guests that choose this option will appreciate the extra effort and will enjoy the ease of their vacation planning.

5. Provide Value-Adding Amenities

Enhance the value of your property by providing amenities that go beyond expectations. Consider installing smart home technology for convenience, offering complimentary bikes or water sports equipment. Value-added amenities can attract guests and justify premium pricing, especially if it saves your guests the hassle of having to rent these items locally. For larger amenities (electric scooters, boats, golf carts, etc.) hosts will need to research insurance coverage and create liability waivers if necessary. It may also be beneficial to charge extra for these items rather than including them in the price of nightly rental. Remember that not all guests will be interested in using these items, and may skip over your property if they believe that there are other similar properties that are more fairly priced and do not include these items.

Increasing the diversity of your revenue streams as a vacation rental owner involves creativity, strategy, and a focus on enhancing guest experiences. By utilizing any of the above recommendations, you can unlock additional income opportunities and strengthen the success of your vacation rental business. By staying innovative, knowledgeable about your community, and responsive to guest preferences, you can continuously adapt your strategies to thrive in the competitive vacation rental market. Happy hosting!