Your vacation home has a floor and a ceiling. Like, literally!
The income your vacation home generates has a floor and a ceiling, too: how much money you should be making is a lot different than how much money you could be making.
The vacation-rental market is more competitive than ever, and the data necessary to determine the numbers on that spectrum can be downright dizzying (note: we review some of these metrics below). So let’s break it down simply: many second-home owners can’t afford a vacation property unless they generate some sort of income from that property.
Maybe that’s the case for you, maybe it isn’t. Either way, if you open your doors to travelers and employ your vacation home as a short-term rental, the goal is to make some money. And that is a lot of work! It’s also a lot of stress, and number-crunching, and data analysis—really, it’s all the stuff a vacation home is supposed to provide an escape from in the first place.
Industry data states that short-term rentals bring in, on average, $30,000 to $35,000 annually. But what does that even mean? The location of your rental, alone, can alter that number drastically. And ultimately, broad-range data like that isn’t specific to your property or situation, landing you right back where we began:
How much money should you be making on your vacation rental?
How much could you be making?
Most importantly, how can you know for certain that you’re reaching those numbers?
A full-service rental management company like MyVacayHome can ensure you’re not only boosting your rental income, but that you’re also able to enjoy your vacation home as the relaxing retreat it’s supposed to be.
MyVacayHome’s team of vacation-rental experts is equipped with the latest technology to help you maximize your return on investment. It’s a thorough, data-driven approach that combines industry expertise with advanced metrics to provide you with all the revenue-related tools you’ll need to run a truly successful rental.
When you schedule a revenue consultation with MyVacayHome, here are just a few of the metrics that can be covered:
Rental Demand Rating (RDR)
If you want to compete with similar vacation rentals in your area, you must consider everything, from amenities and local attractions to public-transportation accessibility. But before all that, it’s best to know what the rental demand in your area is, in general. Rental Demand Rating (RDR) is a score that combines annual occupancy with listing growth rate to illustrate the relative travel demand in your market.
In most areas, different seasons bring different events, with festivals, conventions, and other fun occasions filling up the calendar. You can absolutely capitalize on that fluctuation, but you have to be able to adjust your rates accordingly by knowing your market—and by knowing what your competitors are charging. Seasonality Scores illuminate how much travel demands differ from peak seasons to low seasons. It’s a percentage variance between the minimum and maximum RevPAR (Revenue per Available Room) over the past year.
Did your property earn more this month than it did during the same month a year ago? Our team calculates the aptly named Revenue Growth metric by reviewing the changes in year-over-year RevPAR for any property that received bookings during the same time periods.
To be considered a “full-time” rental, your property has to be available to rent for a minimum of 181 days in a year. Rental Activity, then, is a segmentation tool that divvies properties up by the number of days they were rentable and the number of days they were actually rented.
- Occupancy Rates
- Historical Occupancy Rates
- Guest Origins & Top Domestic and International Cities
- Regulation Scores
- And more!
Interested in a free revenue consultation with one of MyVacayHome’s rental experts?