How to Make Money on Vacation Home Rentals

If you currently own a vacation property rental, there’s a good chance you’re interested in making a profit. People all over the country are seeing the benefits of owning vacation properties as a solid investment and effective means for accumulating extra income throughout the entire year.

With the assistance of an experienced rental management company, owning and managing a vacation rental property can be one of the easiest investments you’ll ever make. These partnerships can take care of all the heavy lifting, including managing, marketing, and keeping up with the maintenance of your property—some rental management companies will even handle the cleaning between guests.

However, simply owning a vacation home rental doesn’t ensure a steady stream of profits. To bring in money with your vacation property, you need to make smart, calculated decisions at every stage of the process, including picking a location, how you market your property, and even the amenities you offer. Here, we take a closer look at owning a vacation home rental and lay out a few strategies for making money with your property year-round.


What’s the golden rule of real estate? Three simple words: location, location, location. If you’re still in the early stages of planning your vacation rental property, you need to keep this rule in mind. No number of amenities or high-end furnishings will make a difference if your property is located where no one wants to visit. In addition to some of the top places to invest, there are certain locations that can ensure your property will be booked all year round.

Consider investing in properties with geographic advantages. Coastal properties, such as those in Florida, California, or the east coast, are notably popular areas. Additionally, properties in the mountains, like those in Colorado or Montana, offer year-round appeal for families who love the outdoors.

When selecting the location for your vacation rental property, take a moment to think: would I like to vacation here? In addition to the intrinsic value of your property, what nearby attractions or landmarks add additional value? Would people travel across the country (or even the world) to stay at your vacation home? In addition to geographic attractions, such as beaches, mountains, or lakes, look for local attractions or growing cities that might draw in more visitors.


Most vacation rentals thrive on seasonality. Whether it’s a summer beach house or a winter cabin up in the mountains, many properties are marketed with seasonal appeal in mind. While this can certainly offer a boon in certain months, you also want to keep in mind the year-round appeal of your property.

If you’ve got a beachfront property, you probably won’t have trouble booking up during the summer months. But what about the rest of the year? Unless you’re using your property in the off-season, you should consider how you can market your property during this time.


For many people spending time at a vacation rental property, the experience all comes down to the details. The location and property itself, of course, are important, but think about the small changes you can make that will really make your vacation property stand out from the rest.

Always make sure that your vacation property is fully stocked with the basics, such as bathroom and kitchen supplies. From there, you can really make your place special. Think about making multiple entertainment options available for your guests, including cable and wireless internet. And while you’re at it, don’t forget to leave the wi-fi password somewhere easy to find.


Early investments will pay off in the long run for your vacation rental property. If you invest in quality fundamentals, such as furniture and appliances, you’ll ideally have less need for repairs or replacements in the years to come. Guests will also appreciate the aesthetic appeal of high-quality furniture they get to enjoy.


To keep visitors coming back to your vacation property year after year, you need to keep the overall guest experience in mind. How can you ensure your guests are enjoying their time at your property? In addition to offering a variety of amenities, there are many small steps you can take to really make a difference for your guests.

Maximizing the guest experience doesn’t have to cost you an arm and a leg. Often, it’s the smallest of details that make the biggest impact on a visitor. If you aren’t working with a vacation property management company, always ensure that your rental home is fully stocked with kitchen, bathroom, and bedroom supplies. Many families choose vacation properties, instead of hotels, because they offer a feeling of home while they’re on vacation. There’s nothing worse than not having clean sheets or enough silverware while at a rental property.


For many families, the rental rate of your property will be a critical factor in determining whether or not they choose your vacation rental. Try to keep an eye on the average rental rate in your area for comparable properties and see how you want to compete. Consider lowering your rates in the off-season to draw in even more potential guests throughout the year.


No matter the location of your vacation rental property, there are steps you can take to ensure that your property stays profitable throughout the entire year. A vacation property, for many people, is an important investment and means for making a profit. By understanding key aspects of the vacation rental market, such as location, seasonality, and rental rates, you can keep your property booked throughout the entire year.

But you don’t have to do it all by yourself. Many vacation home owners choose to enlist the assistance of a property management company to help market, manage, and maintain their vacation property. Choosing the right property management partner can make the experience, for many property owners, as simple as sitting back, relaxing, and letting the profits roll in.

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