Rentals That Thrive in a Recession

Wednesday, September 08, 2010 @ 11:22 PM By: Beach Listings

Many Wall Street pundits are calling for a late year economic recovery.  By then, it’s likely that peak season for most beach rentals will have come and gone.  In the meantime, what can a vacation rental owner do to cut costs and get more bookings?  We have a few tips that will help fill your rental calendar.  

First and foremost, continue to be proactive, and not reactive in your efforts.  Crossing one’s fingers and hoping to squeak through the current recession could very well make this your last season as a rental “owner.”  There are steps one should take before the 2009 rental season gets in full swing.   

Before cutting anything, look for places to shuffle around your finances.  Believe it or not, there are some bright spots in these times.  Mortgage rates are near historical lows.  Take the opportunity to refinance any debt you may have on your real property.   

Another necessity for ensuring rental success is marketing.  With millions of vacation rentals worldwide, it’s absolutely critical to make your rental stand out from the pack.  For starters, why not take the initiative and create a newsletter for your rental?  It’s free, and it only requires a little time and creativity.  Also, gain more free exposure by uploading a virtual tour on YouTube.   

Odds are, if you’ve been at the vacation rental business for a while, you have probably built a nice database of past guests and almost-guests.  You may even have a guestbook with success stories, suggestions, etc.  If so, it’s time to use this information to your advantage.  Get in touch with all of your connections, however you can, and promote your product.  Get your newsletter in their hands. 

Tell of the most recent updates and upgrades to your beach rental.  Advertise a limited time discount.  Or, write a column about the newest attractions to the area.  Whatever it takes, the key is to refresh their memory of your rental and the great memories they made.  Loyal repeat customers are worth their weight in gold. 

Also, make it a priority to find cost-efficient advertising that will provide a good return on investment.  Unfortunately, the first cost that most businesses cut, to their detriment, is advertising.  If at all possible, this should be the last cost one cuts.  Sure, cutting advertising costs will save a quick buck.  But, how are people going to rent your little piece of heaven if they can’t find it?   

BeachListings.com is offering the most cost-efficient advertising available.  Through April 30, all new users will receive one year of free advertising for up to ten beach vacation rentals.  This is the cost-efficient exposure everyone is looking for.  Remember, think “cost efficient.” 

Finally, take an idea straight from the Presidential campaign trail.  Examine your budget line-by-line.  We are all guilty of wasteful spending.  Find out where your money isn’t working for you, and find a better, cheaper alternative.  Can you delay replacing your furniture for just a few more months?  Is it absolutely necessary to give every guest a free round of golf?  Is your rental management firm overcharging?   

These are all common sense ideas that should keep you on the road to profitability.  If you don’t want to be a part of the next bailout story, take a page out of the Beach Listings playbook.  Be proactive, innovative, and more cost-efficient.  You’ll be glad you did so.