Short-Term Rental Properties: Lessons Learned by Our Agents

It's summer, and that means it's vacation season. There are a ton of perks to owning a second home, but a big one is that your second home can be a business opportunity. A couple of our own East + Ivy realtors recently purchased a fixer-upper with the hope of turning it into a short-term rental property, and they've shared their insights below. We've also added a few tips to consider if you want to turn an investment property into revenue with Airbnb, Vrbo, and other rental websites. 

Lesson #1: Manage Your Expectations

The first thing Will and Nicole learned was that there would be challenges. They invested in a 1970s A-frame on a gorgeous lot within a wildlife preserve. Having discovered that the owner did a lot of the work himself and maybe should not have, there were numerous repairs to make to ensure guests' safety– and save themselves from potential lawsuits. Bringing everything up to code was, of course, expensive and took time. These things usually do. 

Once they managed their expectations, though, they were happier and knew that putting more work into the house initially would make managing it easier in the long run. 

"The floors were unlevel," Nicole said. "The furnace was improperly vented, and there were a ton of little maintenance items that really added up; those needed to be fixed to make the house safe for guests and not a maintenance nightmare for us." 

What started as a nightmare was the WiFi situation and lack of options, but a shift in perspective created an opportunity to turn that into a unique feature.

Lesson #2: Capitalize on Unique Features

Satellite internet at the house "is not fast," Nicole explained. "And that makes connectivity a big problem." They initially thought not having internet access at the rental would be an issue for potential guests, but quite the opposite happened. 

"After we received the first few complaints about the satellite internet, we took down the feature." 

[This is another lesson: only advertise what you can provide and highlight what makes your property unique in your description.]

Once they started advertising Rabbits Reserve as a "quiet woodland getaway to reconnect with family, friends, and nature," the bookings never slowed down, and being "offline" actually became something guests valued even more than the internet. Which also leads to yet another lesson learned. 

Lesson #3: Know Your Audience

Being in the D.C. area, people mainly want to get away from the hustle and bustle of the city– and the traffic. When Will and Nicole switched gears and changed their mind a bit, they focused on what made their property a little oasis away from the stressors of DMV living. They emphasized privacy, being off the grid, and highlighted the nature preserve where the AirBnB sits. 

While they highlighted nature, they understood human nature as well. Adding cameras for security and liability purposes was a solid idea. There are rules for staying in any place, but they emphasize no smoking because of the location within a certified wildlife habitat. One group found a blind spot on the cameras and left a mess. 

Will wished those guests would have "had the decency to throw them away" and not "scatter it around the yard," but they could charge and fine the guests for the violation. Having clear rules and expectations is paramount. It is also a plus when listing your place on specific sites that you can rate guests, too– it is just not guests rating you, their experience, and their stay. 

Lesson #4: It's a Learning Curve

As with anything new, you learn by trial and error. Will described it as a "trial by fire." You have to "do your best to be accommodating when issues arise." The partners wished they had taken advantage of the process and jumped in earlier. 

"We waited until everything was 'perfect' before actively marketing it," Will explained. "But the truth is, nothing will ever be perfect, and you won't know the quirks of each specific house until you have guests actively staying."

The listing is quite active, and while the total return on investment has yet to be seen, they're overall happy with everything thus far. 

Embrace the Opportunity

If you have an investment opportunity out there and want to pick Will and Nicole's brains a little more, feel free to call them at East + Ivy. There are a variety of opportunities out there to invest. Maybe running an Airbnb isn't for you, but you're interested in long-term rental properties. Give them a call and see how they can help add another stream of revenue for you.