Renting your holiday home a step by step guide pptx

Our mission is to make it easier than ever for owners like you to advertise & profit from your holiday home and let holidaymakers know about the ease & freedom that comes from renting a

Why Rent Out Your Holiday Home?

“At HomeAway, we’ve created one of the world’s largest online marketplaces for

holiday rentals Our mission is to make it easier than ever for owners like you to

advertise & profit from your holiday home and let holidaymakers know about the ease & freedom that comes from renting a home on their holiday versus staying in a hotel.”

-Brian Sharples,

CEO, HomeAway, Inc

You may have thought about renting out your holiday home for a variety of reasons Perhaps you haven’t used it as much as you planned and don’t want it to sit empty Maybe you really need to offset the costs of owning it Or perhaps you simply want to share your amazing holiday home with others

Don’t let any fears about renting it out stop you from this rewarding experience

Common concerns about renting (too much work, could get damaged, no guests will come) are often unfounded And they’re certainly outweighed by the advantages

Whether you hire a property manager to handle the details or you intend to manage it on your own, start by knowing what to do This booklet will guide you in creating the right plan so you can enjoy having a successful holiday home rental business

Happy Renting,

The HomeAway.co.uk Team

Table of Contents

Getting Started 3

—Lizzie, Pyrenees Orientales, France 3

Setting Goals 4

Following Regulations 5

Getting Involved 6

Hiring Helping Hands 7

Preparing for Guests 8

Marketing your holiday home 10

–Larry, Florida, USA 10

Finding Guests 11

Targeting Holidaymakers 12

Listing Advert Contents 13

Writing the Headline 15

Describing Your Home 16

Taking Photographs 17

Setting Rental Rates 18

The Rental Process 19

—Tansy, Normandy, France 19

Responding to Enquiries 20

Taking Reservations 22

Collecting Payments 23

Receiving Deposits 25

Handling Keys 26

Leveraging Word-of-Mouth 27

Rental Process Review 28

12 Keys to Success 29

Advertise on HomeAway.co.uk 30

Useful Resources 31

Getting Started

“I wanted a new life in a wonderful climate, but I needed an income The south of France

beckoned and I discovered my lovely farmhouse with potential for rental units on my

second visit Now I have the sunshine, the quality of life and the income.”

—Lizzie, Pyrenees Orientales, France

accomplishing this, first spell out your goals in detail and follow this with a plan for achieving them

Following these guidelines will help you get started

a portion of your costs? Do you want to make a profit? If so, how much?

Understanding the financials

If your goal is for your rental revenue to pay all of the expenses associated with owning your property, including the mortgage and overheads (bills), then the below example may help you to structure your rental rates

Example (based on 12 month period):

If you own a villa with a monthly mortgage of £1000 and then rent your villa for £1000 per week, you would only need to rent your property for 12 weeks to break even on your mortgage payments You may wish to consider the overhead costs such as bills and therefore consider renting the property for more than 12 weeks to absorb such costs

For more information on rental revenue try the HomeAway.co.uk free rental income calculator to see how much income potential your property has

www.HomeAway.co.uk/calculator

Following Regulations

When starting out with holiday rentals, make sure your second home business complies with the laws and regulations of your city, town, region and country

Rules regarding short-term lets?

Before you begin renting, check the law regarding short-term lets that is in force not just for the local area, but also for the building or complex For example if you own a flat, or have an apartment on a resort or condo-style complex, there could be a ban on short lets

Be sure to also stay up to date with any proposed changes that may affect your business

To research the status of short-term rentals, check your lease if you have one, contact the local town or city hall, or other appropriate governing body for your region or borough, search online for information about your market, and consider contacting other owners renting in your immediate area for advice

Business Licenses and Permits

Many areas require holiday rental owners to apply for a business license or permit to rent homes on a short-term basis Consult the appropriate local officials for clarification and more information

Health and Safety Regulations

In some markets, holiday rental homes have to follow the same basic safety requirements

as long-term rentals (e.g., sprinkler systems, fire extinguishers, deadbolt locks, pool cover, energy performance certificate, etc.) and may also be required to complete safety inspections Some areas and countries also have specific rules and regulations around health issues, most commonly involving linen sanitisation, well-water testing, and pool and spa maintenance

Getting Involved

After making the decision to rent your home, you must determine how involved you would like to be in the rental process Renting your holiday home short-term requires time, effort, and dedication to succeed

Luckily, you don’t have to do everything yourself Most holiday rental owners either choose to employ a property management company or set up a “rent by owner” situation

Tasks Involved in Renting Your Holiday Home

 Advertising your home

 Responding to enquiries

 Taking reservations and payment from guests

 Handling guest requests and complaints

 Hiring service providers (housekeepers, handymen, etc.)

 Scheduling housekeeping before each holiday rental

 Ensuring maintenance issues are dealt with

When to Use a Property Manager

Consider hiring a property management company if you don’t have the time or desire to successfully run your holiday rental yourself You’ll find property management

companies in most holiday rental markets They can manage every aspect of renting your home, for a commission, of course

When to Rent by Owner

Consider managing your rental yourself if you—

• want complete control over who rents your property

• want complete control over finances and income related to your property

• want to avoid paying circa 20-30% commission to a management company

Remember, there’s no right or wrong way to rent your holiday home Ultimately, your choice to hire a property manager or not is determined by your desired level of

involvement

Hiring Helping Hands

Property Management Company

If you don’t have the time to manage your rental yourself, consider hiring a property

management company to handle everything for you In exchange for their services, they

typically charge a commission, which can range from circa 20% to 30% of the rental income

Before hiring a property manager, verify if the company’s staff will—

 Advertise the property both locally and internationally?

 Guarantee a minimum level of bookings?

 Interview potential guests to make sure they are suitable?

 Inspect the property before and after each rental and do an inventory check?

 Welcome the guests into your property?

 Organise repairs and maintenance, and provide receipts for all expenditures?

Housekeeper or Cleaning Service

When renting by owner, handling cleaning issues from a distance will likely be your biggest challenge It’s critical to find a housekeeper or cleaning service you can count on Start by visiting your holiday home and talking with the housekeepers cleaning your neighbours’ holiday homes You can always contact other owners in your area who are

on our site to find out how they do it

Maintenance Person or Handyman

Consider hiring a maintenance person or company to oversee your property on a

continual basis This works particularly well for people who live far from their second home and can’t visit more than once or twice a year

Solicitor

Before renting your home for the first time, hire a solicitor familiar with the holiday rental market who can advise you on the laws in the area of your holiday home Have the solicitor look over all your rental agreements and policies to make sure they comply with local laws

Accountant or Tax Adviser

Similarly, hire an accountant who can advise you about bookkeeping procedures and tax implications for holiday rental owners

Preparing for Guests

Your holiday home is most likely furnished and decorated However, when you begin renting it out short term, it’s important to find a balance between your convenience and your guests’ comfort

First, walk through your holiday home and remove any irreplaceable items, for example items with sentimental value, or unique antiques or souvenirs Then create a lockable closet for storing the personal affects and supplies you want to keep just for your personal use Make sure the space throughout your home is relatively free of clutter and personal items

The Kitchen

When it comes to the kitchen, guests appreciate convenience Your kitchen should be equipped with enough plates, glasses and cutlery for double the number of people that you sleep Guests also appreciate conveniences like a kettle, toaster, coffee maker,

adequate cooking utensils, and a sufficient dining space

The Living Area

Make sure your living area has comfortable seating for at least the number of people that you sleep and a TV large enough for guests to watch from across the room Provide at least basic channels, a DVD player, and cards and board games for rainy days if you can

The Bathrooms

Guests expect the bathrooms to be spotless and demand quality towels At a minimum, aim to provide:

 2 bath towels per guest

 2 hand towels per guest

 4 washcloths per guest

 hair dryer

The Extras

When equipping your holiday rental, be aware of why guests want to stay in a holiday home instead of a hotel Consider providing these items:

 high-speed wireless Internet

 books, games, videos

 first aid kit

Other facilities that may appeal to guests include:

 video game systems

 pool or other games tables

 play areas and/or toys for children

 equipment appropriate to your area, e.g bikes for a country home, inflatables for the beach, a sledge for ski properties

 BBQ/outside dining areas

 Hot-tub or Jacuzzi bath

Marketing your holiday home

“Your own web site is not hard to create, but does take much time, effort and expense to

promote A great start to advertising online is an immediate subscription to

HomeAway.co.uk.”

–Larry, Florida, USA

be inexpensive (£150-£300/year) and more cost-effective than traditional print

advertising By way of comparison, for £249 per year, you could reach 50 million visitors

on HomeAway.co.uk, or you could pay much more for a one-off advert in a newspaper with limited shelf-life

Speciality Websites

Speciality websites cater to the interests of particular groups of people Some list holiday properties specifically and some do not Speciality websites include Chamber of

Commerce websites, hobby-specific websites like golf or scuba diving, and travel

websites targeting groups such as seniors or pet owners

Personal Websites

While it’s not necessary to create a personal website to rent your holiday home, some owners do so to complement their portal website listings It allows you to provide extra photos and detailed information that can help seal the deal with potential guests

* This type of website tends to produce the most enquiries and bookings

Targeting Holidaymakers

Before you begin advertising your holiday home, take a moment to think about your target guest HomeAway.co.uk conducts ongoing market research to better understand what holidaymakers are thinking when searching for a holiday rental

Most start their search with these criteria in mind:

Location/Proximity to Attractions

Often travelling guests are looking for a property that is close to specific attractions In your description, instead of writing “near tourist attractions, shopping, and restaurants,” list the exact distance from the home itself to specific attractions

Price

Most holidaymakers search with a certain budget and price range in mind Make sure you state your prices clearly and they’re easy to find in your listing

Size of Property

Clearly state the size of your property and maximum number of guests it can

accommodate Guests specifically want to know about your bed setup, as well as the seating available in your living area and dining room

Preferred Dates

Many holidaymakers base their holidays around work and school calendars, which can make their timing inflexible Keep your availability calendar up to date to attract

holidaymakers looking for specific dates, even at the last minute

Remember, most holidaymakers are willing to compromise on at least one of these four factors, so don’t lose out by limiting or omitting this crucial information in your listing

Listing Advert Contents

Most holiday rental portal websites provide holidaymakers with a clear layout of the information they need to make a selection Each HomeAway.co.uk listing template features a headline, a thumbnail photo, a full description, 24 property photos, a rental rates table, an interactive map, a facilities table, an availability calendar, and guest

reviews

Headline

On HomeAway.co.uk, your headline shows up at the top of your listing and in the

summary box for all search results Because your property’s headline is your first chance

to grab guests’ attention, make it as specific as possible Hint: this helps in search engine

rankings as well

Thumbnail Photo

A thumbnail photo of your holiday home also shows up in the property summary on all search results pages and at the top of your listing Be sure to select a unique photo that stands out among other listings in your area

Full Description

Your property description on HomeAway.co.uk is a 100-word summary of your holiday property Make sure it paints a clear picture of your home and all the extras it offers

Property Photos

Your HomeAway.co.uk listing can display up to 24 photos of your holiday home

Showing exceptional photos results in more enquiries and ultimately more bookings If you’re not comfortable wielding a digital camera and uploading photos, ask a friend to help or hire a professional photographer

Interactive Map

The interactive map shows a pin-point location of your property location Holidaymakers often refer to the map for guidance Owners can also restrict the level of zoom on their property

Rental Rates Table

Price is one of the most important factors when choosing a holiday rental, so it’s

important that site visitors can easily determine your rates The HomeAway.co.uk rental

Holidaymakers need to know when your home is available, especially those wanting to book specific dates The easy-to-update availability calendar on HomeAway.co.uk keeps them informed

Guest Reviews

Your past guests can leave reviews about your home using the HomeAway.co.uk

Reviews system Featuring these reviews can make a difference Guests are more likely

to choose a holiday home that several past guests have favourably reviewed Once you have welcomed a guest or two it worth prompting them to leave a review

Remember, the more complete your portal website listings are, the more comfortable holidaymakers will feel to ask about – and ultimately book – your holiday home

Writing the Headline

The single most important text in your HomeAway.co.uk listing is your headline It appears not only at the top of your advertisement, but also in your property summary that shows up in HomeAway.co.uk indexes and search results

Like the headline of a print ad, your property headline uses a few well-chosen words to generate interest in your holiday home Yours should be more than good; it should be GREAT

What to Include in the Headline

Use words that clearly depict your holiday home and its position in your market You could describe your property type (e.g., cabin, apartment), location type (e.g., beachfront, city centre), suitability (e.g., pet friendly, perfect for kids), and facilities (e.g., hot tub, pool, pool table, tennis) Specific keywords like these catch the eye of potential guests and help your listing show up higher in the Internet search engines

What Not to Include

An effective headline doesn’t repeat information detailed in your HomeAway.co.uk summary box (that is, location, number of bedrooms and bathrooms, and the number of people it can accommodate) Avoid using local jargon or abbreviations; don’t assume your guests are familiar with the area

Don’t Ever Copy Another’s Headline

Never copy another listing’s headline Your headline’s uniqueness will attract interest in

your listing If the same wording appears with another property, neither will stand out

Bad headline: “Wallaby’s Paradise”

Good headline: “Cozy Beach House Near Anini Beach”

GREAT headline: ““Luxury Beachfront Home with Pool, HDTV, Spring Break Open”

IMPORTANT NOTE: In accordance with CAP (Committee of Advertising

Practice) Guidelines from the ASA (Advertising Standards Authority), all online advertising must contain an accurate and not misleading description of products (in this case your property), availability and prices, plus evidence must be held for all