Luxury vacation rental owners strive to balance profitability with property preservation. The idea is to reduce occupancy while maximizing revenue. This means commanding a premium rate by offering a luxury guest experience.
If your priority is to offer an elevated experience and generate greater ROI, instead of filling vacancies in a calendar as jam-packed as possible, how are you going about that?
Today, the flourishing luxury vacation rental market offers some inspiring success stories. Some “how to” articles want you to believe it’s easy to ride the wave to success, too. As many success stories as there are, however, there are ten times as many examples of what not to do.
Keep reading to learn what the primary “potholes” are in the road to success with a vacation rental property…from interior design to cleaning practices and maintenance.
The growth of the vacation rental market
The vacation rental industry as a whole, and especially the luxury vacation rental market, has seen enormous growth recently. The combination of vacation build-up during the pandemic, the growth of online rental platforms, and the demand for unique travel experiences has created the perfect opportunity.
The vacation rental market is projected to grow from $82.63 billion in 2022 to $119.01 billion in 2030, meaning a 44% growth in eight years.
Will every vacation rental property contribute to that wealth? No.
Will every vacation rental owner see 44% greater earnings in the next eight years without making careful and strategic decisions? No.
Seizing this growth opportunity starts with making smart decisions…and avoiding these key mistakes.
Top 8 mistakes vacation rental owners make
- No design theme (or mismatched interiors). No vacation rental owner should overlook the importance of cohesive interior design, and luxury rental owners less so. A mismatched interior often happens because vacation rentals turn into the “graveyard” of things that no longer work in your main home. That doesn’t mean they belong in the vacation rental, though!
To command premium rates, invest in professional interior design to create the ambience you’re trying to achieve. Professional design will also enhance guest experience in key comforts beyond aesthetics. - Surface-level-only cleaning. Inadequate cleaning comes in many forms, and in one way or another it WILL tarnish guest experiences and your reputation.
Even if you think your cleaning routine goes deeper than wiping surfaces, consider all the deep cleaning that needs to happen between every visit, like sanitizing every surface people touch (remote controls, cabinet handles, etc.), washing throw pillow cases, and washing all kitchen utensils and appliances (whether you know what was used or not). - Deferring maintenance. Neglecting key maintenance tasks will lead to costly repairs later, not to mention downtime for your rental. Seasonal maintenance is an absolute must, and then a checklist for maintenance to-dos between each visit should include things like testing all door latches, all window closures, all lightbulbs, all alarms, etc.
- Cluttered spaces. Luxury rental spaces are increasingly cluttered with unnecessary furnishings and décor that guests “might need,” or that are in too good of condition to throw away. Unnecessary selections should be gifted, donated, or sold. Opt for a design that prioritizes functionality and flow, and think through what activities a big group of guests might use your vacation rental for. Design floorplans to accommodate those specific activites.
- Inconsistent cleaning standards. If you don’t outline your expectations for the cleaning service between each guest visit, you might be failing to meet your own expectations — and even less the expectations of a guest with allergies, sensitive skin, or any other ailment that will make sub-par cleaning a health hazard as well as a reputation problem.
Write out detailed guidelines to provide to your cleaning service, AND ensure you have a system to check that each guideline was met. Learn more about what this checklist could look like in our most recent edition of Signature Home Style… - Lack of storage solutions. The storage solutions you provide in your vacation rental property should be abundant, cleaned and checked during regular maintenance. It should also be designed for the kinds of things people travel with.
For example…if you have a lake house, do you have places designed for someone to hang swimsuits out to dry? Do you have convenient places to tuck luggage away while all its contents are all in use? Do you have a kitchen with ample storage for the kinds of foods and beverages people like to eat on vacation?
To keep your interiors looking breathtaking, smart storage solutions that maximize spaces and enhance the aesthetic often include built-in cabinets and multifunctional furniture.
- Overlooking exterior maintenance. Owners usually focus on interior upkeep, but external maintenance of a vacation rental property is just as important. From landscaping to exterior paint, prioritize the curb appeal of your property to make exquisite first impressions.
- Taking too long to refresh the space. The interiors of your vacation rental property should be refreshed once every two years. Yes, household items like towels, some cookware, and linens might be switched out even more often if they start to show wear and tear…but the overall aesthetic should be updated regularly, too.
This also means your property photos will be updated once every two years for the rental websites you advertise on, which gives your property increased appeal on those sites. Keep it fresh, keep it beautiful, and keep guests coming back with a real sense of wonder!!
The massive opportunity in the vacation rental design space means that it’s also a COMPETITIVE space. Avoid these common mistakes and you can elevate your property and become oneof the vacation rental owners driving the optimistic predictions for the industry.
Commit to excellence, and you build a reputation of excellence.
Remember, our CEO and Principal Designer, Robin Burrill, is a certified Vacation Rental Designer. Talk to her to see what more you can do with the design of your space to make it perfect for the luxury vacation rental clients you want…
Leslie, these are EXCELLENT points. The dedicated reading light is one of my favorite suggestions for VRD property owners…because, as renters, we have so much more time to read on vacation than at home (usually)!! The property should be equipped for people to enjoy the vacation or the time off they REALLY dream of. That’s how owners get those 5-star reviews!!
Thank you, Amy! This is a new and exciting space, and without existing regulations and universal standards, most of this is “learn as you do it” (or “learn as you miss the mark”), so I’m hopeful this article will be helpful for others!!
Thank you, Rebecca!! I recently learned more about how common some of these shortcuts are…and what’s at stake, especially with the cleaning protocol!
Well done Robin! Excellent reminders. I’ll need to take heed myself!!
I love this post, your advice is spot on! Having owned two properties that we rented out in the past, I recognize as every bit of your advice as being so important to the property owner. Great advice Robin, also a great topic for a post!
Robin – This is such a useful post for those who want to maximize the ROI on their vacation rental properties. I’m not a VRD property owner, but I do stay at a lot of them, and here are a few things I’ve noticed that people who have luxury vacation rentals might want to consider having:
1. Dedicated reading lights [vs. just a table or floor lamp ] on each side of each bed and in areas where reading is likely to take place.
2. Lighting that lights the way to the bathroom without turning on all the lights.
3. A closet with the things that a senior person or a pregnant person – or a kid who breaks a n arm or a leg on a ski vacation might need: anti slip mats for the bathroom, an extender that sits over a *too low* toilet, a walker, a cane, a wheelchair.