According to the Insurance Information Institute, homeowner’s premiums have been on the rise for many years, but you aren’t spending most of your money on rent and utilities—you can recover that money and make a profit at the same time.
Using these steps, you can get into the right segment of the vacation rental market, make the most of the property, and invite amazing guests that will keep the house full for much of the year. If you’re just starting with a vacation rental or need help because with an existing rental property, read further or reach out to our team.
Research the Vacation Rental Market
When you look into vacation rentals, you need to know the market. If you already own a rental property, you must maximize the property you own, irrespective of its location or state of repair. If not, look for properties that are in popular tourist destinations where property values are relatively low, flooding risks are low, and flood insurance premiums are reasonable.
For residents of Amityville, it is important to know the parts of town where tourists want to go—whether you live there or not. You’re not searching for a place to live—you’re searching for a rental house that vacationers will enjoy throughout the year.
Whether your guests want to drive past the infamous Amityville house, visit the beach, sail, drive along the coast, or do some antiquing, your vacation rental should serve a vacationing clientele.
Spend Money to Make Money
If you haven’t renovated your vacation rental, it cannot reach its full potential. We’re not opposed to a rustic, country cottage, but the space should be clean, updated, and feel like a hotel more than a home.
At the same time, your upgrades should be accented with loving touches that make your guests want to return. In fact, a friendly note to leave for every guest when they arrive is: Welcome Home.
Spending money now will help you recover that cash in the future when you can charge $200, $300, $400 per night or more.
Welcome a Diverse Client Base
Market your rental home to a wide range of vacationers. Yes, you can speak to haunters who want to see the Amityville house, but should market all the other things that excite you about the Amityville area. Your guests might be interested in local microbreweries, restaurants, tours, etc.
Plus, you can welcome couples, extended families, parents, and anyone else that you believe will love the house.
If the space is designed to suit certain types of people, try to diversify within that class. For example, you might have a lovely cottage with a loft sitting over the living room. You can sell that loft as the teenage hangout space, a fun room for the parents, a place to play games and eat, or even a spot for the kids to build a pillow fort and camp out.
Don’t DIY Everything
While it can be tempting to DIY your vacation rental to save money, you need to know when to call in a professional to help with renovations. You want your guests to have the best experience, and spending a few extra dollars on a professional tradesman or contractor is safer than doing the job yourself and underwhelming your guests.
Price the Home Appropriately
Now that you’ve upgraded the property and found a target clientele, you should price the house appropriately. For example, a studio-style cottage won’t rent for several hundred dollars per night, but a five-bedroom home that sleeps 13 might rent for thousands of dollars per night.
You can also increase prices during the busiest season while dropping prices when tourists aren’t flooding the area. In this way, you attract guests throughout the year without pricing yourself out of the market.
Plus, you must determine how much profit you need to see throughout the year to pay the mortgage, pay yourself, and cover your expenses.
Vacation Rentals Need Insurance
You must insure the property with:
- Homeowner’s insurance
- Landlord insurance
- Business owner’s policy
- Flood insurance
- Personal liability
- Umbrella/excess coverage
While you may need to carry a range of insurance coverages, they are valuable because they allow you to repair or even replace the property in the event of a loss. You can remain open—even in the face of severe damage—and recover lost business income if needed.
For more information on the range of policies you should carry, reach out to our neighborhood brokers at The Budde Agency to learn what’s possible and how insurance fits into your business plan.
Contact The Budde Agency for Assistance With Vacation Rental Insurance
Reach out to The Budde Agency when you need help with insurance solutions for your vacation rental in the Amityville area. We can help you maximize the property, earn a comfortable profit, and protect the home so that it can be handed down for generations to come.