5 Steps to Starting a True Home Business as a Vacation Rental
More and more vacationers and business travelers are looking for somewhere to stay that's not a traditional hotel or resort. This can create a great opportunity for homeowners everywhere to earn a little money on the side and meet new people by renting out some or all of their home.
If you think this venture might be right for you, how can you get started? Here's a handy 5-step guide.
Learn Local Zoning
As VRBO (vacation rental by owner) has grown in popularity, so have local rules that oversee it. Some cities, including popular destinations New York and New Orleans, have instituted limitations or licensing requirements.
Before you make any plans or changes, determine what business you are allowed to run from your home, what you can rent out, and what types of rules you must follow (such as limiting short term rental days) to meet these laws.
Plan Your Rental
Once you know what you can rent, it's time to start planning how you will rent your home. Vacation rentals come in all shapes and sizes and cater to different travelers, so there's not much limit to what you can choose to do.
Make a list of questions you need to answer in advance. Will you offer the entire home while you are not using it? Will you rent only a single room or two? Does the space have its own bathroom and kitchenette facilities? Can you add them? Can you create an outside entrance so you will be less bothered by guests? How often will you rent the space? What are going rates in your area for the same size?
Make a Budget
After determining what you want to accomplish and what you will be renting out, you may need to do some updating, adjustments, and stocking. Make a reasonable budget divided into these three categories so that you're less likely to run out of funds for everything that needs done, plus a few "wants" too.
Find a VRBO Service
Nearly all short term rentals work with VRBO services like StayInBNB.com that assist with marketing, making reservations, and accepting payment. Using a VRBO service allows you to minimize the time and money you spend getting guests and dealing with the administrative tasks of being a landlord.
Read all the information provided by the VRBO service that outlines your rights and responsibilities and ask questions about anything you're not clear on. You will likely also find a forum of other landlords that can help you answer questions and address concerns.
Make Some Rules
Finally, before you begin, you'll need to set some ground rules. Written communication and contracts are key to having a successful business. The VRBO service you choose will often have its own rules, including how refunds are processed, what you can charge for cancellations, what amenities you must provide, and how to handle disputes. You can generally add a few rules of your own, such as quiet times, check-in deadlines, use of the property, and parking.
Once you've navigated this setup period, you should be ready to get started on your new business adventure.
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