Short-term rental income is a great opportunity for homeowners and real estate investors looking to generate extra income. Short-term rentals can be your primary residence, a second/vacation home, or an investment property that is rented out for periods of less than 30 days, typically through platforms like Airbnb, Vrbo, or Booking.com.
It’s easier than ever for homeowners to monetize their properties, generating short-term rental income, especially in popular tourist destinations. According to AirDNA, the average Utah Airbnb host earns about $49K annually in rental income, while the average Utah Vrbo host earns about $3,500 per month. There are several factors that will impact how much you make as a short-term rental owner:
From Bear Lake to Midway to
St. George and Moab. We’ll help you generate more income than ever using whatever type of home you own.
Set Up your Home for Rental Income
1 Location: The location of your property is one of the most important factors when it comes to short-term rental income. Properties in popular Utah tourist destinations or areas with high demand for short-term rentals tend to generate higher rental income.
2 Regulations: It’s important to research the local laws and regulations regarding short-term rentals in your area. Some cities have strict regulations or outright bans on short-term rentals, so it’s crucial to ensure that your property is legally compliant before listing it on any platform. We can help if it seems like your city won’t allow short-term rentals.
3. Property management: Managing a short-term rental property can be time-consuming, especially if you’re doing it yourself. Consider hiring a property manager or using a property management company to handle tasks like cleaning maintenance, and guest communication.
4. Competition: Short-term rentals are becoming increasingly popular, which means that there is more competition than ever before. To stand out from the crowd and generate higher rental income, consider offering unique amenities or experiences to your guests.
Correct Pricing to Maximize Rental Income
5. Pricing: Setting the right price for your short-term rental can be a balancing act. You want to generate enough rental income to cover your expenses and make a profit, but you also don’t want to price yourself out of the market. Research comparable properties in your area to get an idea of what other hosts are charging, and adjust your pricing accordingly.
Evaluate gross profit by calculating fixed costs like mortgages, insurance and anticipated expenses, and HOA dues. Other costs, like repair and maintenance, utilities, and house supplies will fluctuate.
Vacancy rate is, of course, important as you can’t make money if your home isn’t booked. Small tweaks in nightly pricing, cleaning fee, and offering discount stays will increase your occupancy rate and your profit. We’ll consider each of these factors will help us set the correct price for your vacation rental.
6. Reassess: We’ll constantly monitor your home’s performance and adjust pricing, features, fees, and perks as necessary. We’ll also weigh your rental’s performance against other short-term rentals in the area to remain top of the list when guests search your area for their vacation rental needs.