As is the case with many industries, most rental properties will experience changes in demand over the course of the year. In a state like Arizona, which experiences more than 22 million visitors per year, the busiest times of the year for rental properties occurs during May and June.
If you are the owner of a vacation rental property, one of your most important tasks will be to make sure your property is rented on a regular basis. After all, even if you have entirely paid for the property, factors such as utility bills and taxes can cause the property to end up losing you money.
As is the case with many industries, most rental properties will experience changes in demand over the course of the year. In a state like Arizona, which experiences more than 22 million visitors per year, the busiest times of the year for rental properties occurs during May and June. This may be somewhat surprising, considering that Arizona is already one of the hottest places in the nation.
Regardless, if you are a property owner, you will want to make sure your rental is almost always occupied. In order to make this ambition a reality, you may need to make some adjustments to your current rental strategy.
In this article, we will discuss some of the best ways that property owners can increase their occupancy rate. By taking a proactive approach and encouraging rentals during the offseason, you can significantly increase the return you earn on your initial investment.
1. Offer discounts during the offseason
Rental properties, like most things, are governed by the laws of supply and demand. When demand is high, you can get away with charging higher prices. When demand is low, you may need to adjust prices downward in order to secure a rental.
One problem within the rental property industry is that too many owners charge the same prices all year round. This results in unoccupied properties during the offseason and underpriced rentals during the busy season. By adjusting your approach throughout the course of the year, you will be able to increase your bottom line.
2. Hire a property management team
As you may have discovered, owning and managing a property is a lot more work than many people give it credit for. Between the cleaning, renting, and dealing with guests, it is quite easy to find yourself completely overwhelmed.
In order to address this common concern, there are many Scottsdale property management firms (like VacayAZ) to choose from. For a reasonable fee, these firms will deal with the logistics involved with maintaining and continually renting your property. In the end, you’ll be able to earn more money while also doing less work.
3. Encourage repeat rentals
In almost every industry—including the property rental industry—it is much more affordable to keep an existing client than it is to pursue a new client. Instead of needing to heavily invest in marketing and pursuing new people, it may make more sense to pursue those who have already stayed in and enjoyed the property.
When your guests check out, consider offering them a discount if they book a trip next year at the same time. This will help fill your guest book more quickly and potentially reduce the need to lower your rates.
4. Identify your target market
If you are hoping to maximize the effectiveness of every marketing dollar you spend, you will need to begin by recognizing your target market. This way, you will be able to narrow your approach to acquiring new guests and appeal to people who are actually interested.
If you are in a “snowbird” state such as Arizona, it can be helpful to know where the majority of your guests come from. They may come from California, New York, or anywhere between. Keeping track of these details can help you launch a regional marketing campaign that is likely to produce results.
5. Compare property to your neighbors’
As long as there are multiple other rental properties in your area, there will exist at least some level of competition to attract renters. In order to avoid getting overlooked, you should price your rental with consideration for the prices of those surrounding you.
Not all rentals in your neighborhood will need to be the same price. However, if your neighbor owns an identical property that they are renting for much less, it is obvious that most renters will choose that property instead of yours. This problem is especially pronounced during non-peak rental seasons.
6. Encourage positive reviews
One of the best ways to get people to consider your rental property is to encourage positive reviews from people who have stayed there in the past. When comparing properties online, many people search by “top rated.” If your property is too far down on the list, it may be overlooked.
Offering incentives for reviews can help increase your total review count. Additionally, hiring a property management company can help you manage your reviews even more effectively. As the internet continues to increase its role in the property rental market, having quality reviews will become even more important.
7. Promote seasonal benefits
One of the reasons why many people don’t visit places in the offseason is because, simply, they are unaware of what is even going on. However, if you live in a major metropolitan area such as Phoenix (or nearby Scottsdale), there will be things to do throughout the entire course of the year.
By listing events occurring near your property each month, people will be more likely to choose your property for their final destination. You can also make an appeal to regional advantages—in the cold of winter, many northerners long to find the warm climate Arizona provides.
8. Incentivize referrals
If your guests have enjoyed their stay in your property, they will surely want to tell their friends. Being the “go-to” Scottsdale property will make it easier to develop a repeat and referral-based business.
Many referrals do not come to fruition for many years to come. But if you tell your guests that any referral will be rewarded with 5 percent off (or whatever figure is appropriate), their friends will be much more likely to consider your property the next time they’re in town.
Conclusion
Quality property management requires an ongoing, pointed effort. Without guests, your property will never yield the sorts of returns you are hoping for. With these useful tips in mind, your property will increase its occupancy during the offseason and maximize its overall value.
