The business of short-term rentals is a long stretch away from being a shady “pipedream”. Despite its minor criticisms, this line of work can unlock a phenomenal earning potential, while still being perfectly ethical, legal, and scalable.
We would never be so ignorant to claim that making money from short-term rental managed property is “easy” (because nothing worth having ever is); but it’s true that the concept is simple; and accessible enough for practically anyone to jump on board.
So long as you have a genuine drive to succeed and do your due diligence properly – and that latter part is very important.
Kick back with us as we talk you through how much money you can expect to (realistically) make with a short-term rental managed property; and whether it’s worth you leaving your other full-time hustle for.
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Up to 4 Times Your Usual Rental Income…
But do bear in mind, quadrupling your usual rental income with short-term rentals, isn’t about raising your prices alone.
Too many people assume that once a property is managed as an STR, all that’s required is a higher nightly rate and the extra revenue will magically come rolling in. There’s a lot more to it than that; otherwise everybody would be raking in the money by now.
While short-term rentals provide a realistically higher earning potential, it’s vital that hosts understand the ins-and-outs of dynamic pricing (setting rates according to a number of variables, such as season, demand, competition, etc) – or that they have the right tools and partners to help them do this.
Naturally, when you are renting your property out on a short-term basis, where rates will understandably fluctuate, you can justify a much higher price over the holiday season (such as Christmas and the summer holidays) – which is something that you simply cannot do with a “traditional” tenancy agreement. This alone alludes to the enormous earning potential with this rental strategy.
Research shows that your earning with a short-term rental managed property should increase by at least 21%; but with Luke Stays you’re likely to see a rental income that’s four times higher than what you usually expect.
This is largely due to the systems and processes that we already have in place:
> Thorough market analysis (we research the competition and set rates, based on that)
> Effective listings and maximum exposure across booking channels
> Deep understanding of dynamic pricing
> I-PRAC accreditation and free StayCover feature on all Luke Stays STR managed properties, meaning more guests are attracted to the properties, even with a slightly higher booking rate (because you can’t put a value on trust).
Those who go the extra mile and focus on the hospitality, guest experience, and design their properties so they’re fully kitted-out with what a guest needs will reap the rewards of this in their monthly income, too. At Luke Stays, we have an in-house team of interior design experts and they ensure that all the STR properties we manage generate the absolute maximum, while still being fair to the current market.
Guilt-Free Rental Income
As entirely transparent business leaders, we choose to address the elephant in the room – which suggests that a large number of short-term rentals is exploiting guests and tenants; and therefore generating high revenue via unethical means.
Unfortunately this misconception puts a number of people off from fully exploring the benefits of short-term rental managed properties.
While the housing crisis, unemployment, and the increased cost of living continues to impact many people and families, earning money from short-term rentals does not take advantage of this in any way.
A vast portion of the population (many of whom we rarely hear about) see short-term rentals as an immediate solution. There are those who need to move from place-to-place for work and business commitments – in order to hold down a salary – those who need temporary accommodation while they are waiting on their long-term home to be ready for them; and those who simply do not have the means to commit to a long-term tenancy agreement.
As such, increasing your revenue as a result of short-term rental managed property is a perfectly ethical way of boosting your monthly income and something that we recommend you do with the right partners by your side.
To find out more about how you can boost your rental income with a short-term rental property, get in touch with our friendly team now – and we’ll even offer you a free property analysis.