“Fill’er Up!” Strategies to Keep Short-Term Rentals Full

BY MICHELLE GAMBLE

Whether you own one short-term rental or 20, the way you make money is to keep those rooms, houses, condos, etc., full of renters. Your success as a short-term rental provider depends on maintaining low vacancy rates even during the offseason. To achieve your goals will depend on your strategies and techniques to market your properties to attract renters all year round. Some shortterm rental providers have done so well at their property marketing techniques that they’ve kept their vacancy rates as low as three percent annually, which is impressive.

First, start by doing your homework and identifying your vacancy rates. If you cruise along without really knowing or understanding the numbers as to how they seasonally fluctuate, you'll be in the dark about the market. Not tracking your vacancy rates and then finding that at the end of the year your income fell short means you didn't know the numbers and what needs to be done to increase your income. So, make it your priority to know your key success metrics. This means setting up an accounting system in which you track how many days your rental goes full versus empty, and the times of year rates increase or decrease. If you’re not a math person, hire an accountant or business manager to track it for you.

According to many experts, vacancy rates tend to fluctuate for different property owners’ short-term rentals. Reported vacancy rates ran as low as three percent to as high as 50 percent. Interestingly, property owners who reported vacancy rates as high as 50 percent didn’t seem concerned by the high percentages. These owners, whose rates were recorded at higher percentages, also cited the nearly nonexistent vacancy rates during high tourist seasons. In those cases, the ability to increase the rental rates during peak seasons the low seasonal vacancies, which balanced out the owners’ incomes. Thus, marketing activities tended to follow along with seasonal demands.

Obviously not all short-term rentals, especially those advertised through the big sites like Airbnb or VRBO, are rented in tourist locations. Many property owners whose rentals sit in neighborhoods in different cities attract migrating workers (e.g., traveling nurses). Keeping those short-term rentals full requires a different set of marketing and business strategies. So, it’s important to keep this distinction in mind when considering what you can do to reduce vacancies.

Some owners, whose vacancy rates are higher but they want to increase these rates use a combined strategy. “We have a vacancy rate of 38 percent,” said Kurt Walker, CEO and Real Estate Expert at Cream City Home Buyers. “The thing about our marketing strategy is that we don’t specify it for a certain group of people. Airbnbs are generally seen as a pitstop for people who need to stay somewhere for a work trip. But we market it in a way that shows it’s the ideal place for a vacation.”

On the other hand, you have property owners like Tamara White, who is a property owner who hosts short-term rentals in Oakland and Georgia. She impressively keeps her vacancy rate at two percent, which means she maintains 98 percent of her properties full.

“I constantly market my property on multiple channels to increase the number of guest applications and interest,” explained White. “Due to the regulations in Oakland, I only allow my property to be booked on a 30-day minimum. Because of this, I often get medical professionals, nurses, construction workers, and others traveling for work. This is a unique niche that I am able to capitalize on. I use a combination of Airbnb and Furnished Finders to fill my vacancy and find that I am able to have someone in the property within a day of someone else departing. I try to leave a day or two in-between guests to allow for thorough cleaning and other maintenance issues that may arise.”

Scott Rubzin, founder of Tiffany Property Investments LLC, maintains a five percent vacancy rate for his Airbnb rentals.

“The best way you can fill your Airbnb vacancy is by setting the price according to the season. You should adjust your pricing based on seasons. Prices should be higher when tourists are expected and lower when the opposite is true. A dynamic pricing model can help you stay ahead of the competition.”

Another property owner, Jasen Edwards, licensed real estate agent and coach at Agent Advice, maintains a 13-percent vacancy rate on his Airbnb properties. “[Our low rate] helps us balance our reputation in the market and in front of renters,” he said. “We use online listings to fill our vacancies. It helps us target potential renters. We also advertise on local and regional websites. It enables us to target a large number of people.”

Sometimes it works best to keep a good average on your vacancy rates to maintain steady income, especially when your vacancy rates tend to fluctuate. George Beatty, founder of Problem Property Pals, maintains a steady vacancy rate of around 30 percent. He uses some more mainstream marketing practices such as the application of search engine optimization (SEO) to increase the visibility of his business.

“This has helped us find renters and keep our business running,” said Beatty. “We also encourage renters to leave reviews on our website, as positive customer reviews are a top SEO ranking factor. This has worked to our advantage so far. We also offer referral discounts to guests. This has helped us boost our efforts to find renters.”

A more traditional marketing technique uses referrals to spread the word about the property. Bram Jansen, chief editor of VPNAlert, suggests using incentives to get referrals.

“Giving them a rent credit or gift card is one easy way to do this,” he explained. “Recommendations from current renters can be a great method to find new residents and strengthen community ties. Motivate your renters to become your best advocates by having them post good reviews and comments about your property online.”

Jansen’s referral technique goes hand in hand with providing excellent customer service that creates such a positive experience that renters will want to share about the property. Kimberly Shaw, a property expert from the San Francisco Bay Area, keeps her vacancy rates between 10 and 15 percent by doing what she calls “prioritizing the customer experience.”

“To market and communicate effectively with potential renters, I use several strategies,” she said. “The one thing all short-term property owners should do to attract renters is to prioritize the guest experience. This means providing a clean, comfortable and well-equipped space for guests to stay in, being responsive to their needs and inquiries, and going above and beyond to ensure their stay is enjoyable. By prioritizing guest experiences, short-term rental owners can build a positive reputation and attract repeat business and positive reviews, which are essential for success in this industry.”

“The one thing all shortw-term property owners should do to attract renters is to provide outstanding customer service,” said Alex Capozzolo, co-founder of SD House Guys based in San Diego. “This means providing a warm welcome and making sure the rental is clean, comfortable and well-maintained. Taking the time to get to know potential guests, being available if they have questions or concerns, offering assistance with check-in, and providing local recommendations are all important ways to provide a great experience for your guests. Additionally, having a reliable system in place for communicating with guests can also help attract more renters by showing that you are professional and organized.”

THE SHORT-TERM RENTAL CHEAT SHEET

Aside from techniques mentioned earlier, here is a cheat sheet on some quick-and-dirty ideas to market your rentals. These ideas were submitted from property owners as their “secret sauce” to successfully keeping their rentals full.

Utilize social media: Using platforms like Facebook, Twitter or Instagram (TikTok is useful as well) to market your rental can be highly effective in attracting potential guests. You can post pictures of the rental and use hashtags to reach more people.

Reach out to local publications: If there are local magazines or newspapers that cover the area where you are located, consider inquiring if they accept ads or articles. This can be a great way to get the word out about your rental and attract more guests.

Reach out to tourism organizations: If there are tourism boards or organizations in your area that promote travel and accommodations, consider reaching out to them as well. They may be able to help you get the word out about your rental.

High-quality photos – ensure that the photos of your properties are professional, well-lit and showcase the prop- erty’s unique features.

Short-form video content – use videos of happy customers and post those videos on social media, your website or blog. Detailed descriptions – provide detailed descriptions of each property, highlighting its features, amenities and location. I also include information on nearby attractions, restaurants and public transportation options.

Special promotions – to fill vacancies during slower seasons, offer special promotions or discounts to incentivize potential renters to book with your property. Offer discounts for longer stays or create referral programs that allow renters to get a discount when referring friends and family to your rental business.

Focus on quality – make sure your properties always look their best. Invest in quality furnishings and amenities, take professional photos, and create detailed descriptions of each property so potential renters can get an accurate sense of what they are getting into.

Homey touches and quality amenities – offer a fully stocked kitchen for guests, including items like a crockpot, air fryer, coffeemaker, pots and pans, and lots of spices, etc. Most guests travel from afar and often arrive with only a suitcase, so it’s important that they experience “a home away from home.” Offering a fully stocked kitchen is one thing that all short-term rental property owners should provide if they have the space and capacity.