Despite the adverse effects of the pandemic on the hospitality industry, the market for holiday homes is thriving and occupancy and higher nightly rates are up by 124%. A clear indication that buy-to-let properties generate higher returns (between 40%-60%) than properties for rent.
With the official launch of Expo 2020 in October, tourist numbers are only expected to rise. This means that demand for short-term rentals is foreseen to increase as well.
If you are a landlord looking to increase your holiday home’s profit, or simply someone looking for a reason to invest in a vacation home, read on to find out the ways you can maximize your income from your holiday home.
The perfect location
Location is a crucial factor in a guest’s decision-making process. It also has the greatest impact on the income you generate.
Whether your vacation home is focused on minimum stays or daily bookings, guests prefer a more central location where transportation is accessible. Your holiday home might be located in a serene hideaway, but ensuring good transport links will increase its appeal and price.
Almost 80% of guests will ask if your property is within walking distance of a metro station.
Similarly, local attractions like beaches and popular tourist spots, and available parking spaces will likely draw more visitors to stay and pay more.
Here are other factors that can increase your property’s location’s appeal:
- Beautiful views
- Cafes and restaurants that are close by
- A supermarket within walking distance
- Taxis available from the street
- Landscaped surroundings
We gathered popular areas in Dubai that yields some of the highest profits.
Dubai Marina
City Walk
Palm Jumeirah
Downtown Dubai
Appearance and Facilities
The facilities and interiors of your property can be the deciding factor on whether your guests choose to book or not. Here is a list of some key facilities that are crucial to have in your holiday home:
- Air Conditioning (especially in this Dubai heat)
- Washing Machine
- Iron and Ironing board
- Key to each bedroom for privacy
- Kitchen appliances and utensils
- Fast Wifi
- HD TV
- Natural light
- A Private balcony
Adding special touches like a coffee machine, blender, food processor and hot tub is a good incentive to increase your rates and boost your bookings. Likewise, if your property has its own private pool, is pet-friendly, and offers unique facilities, paying extra will not be an issue for your guests.
Investing in good quality and durable furniture is also another way to increase your property’s appeal. Most may think that furniture must be costly to look good, however, this is not always the case. There is a wide variety of shops that sell classy and affordable furniture across Dubai.
You can even buy second hand bespoke pieces on Dubizzle and Facebook Marketplace.
Making sure that your interiors are updated and match your location is also a bonus. If your holiday home is near the beach, having interiors that are more tropical yet modern can make your guest truly feel like they are home away from home.
Having great interiors is not just about vanity. It’s about ensuring that your guests have a great stay and will want to be repeat customers. To have guests go beyond by recommending your vacation home and leaving good reviews for others to see.
Marketing on point
The holiday homes that get the most bookings are those with high visual appeal. Having high-quality pictures is one of the most important factors in ranking high on listings.
Your pictures should have a storyline to create a great first impression when guests come across them online. Capture photos in bright rooms, use a good camera or hire a professional photographer to ensure that your pictures do justice to the beauty of your vacation home.
If you want to get more bookings, you have to get your property in front of potential customers by listing it in every travel booking site. However, it is not easy to manage your listings across multiple sites. Every platform has different requirements and onboarding categories that owners may not have time to manage or fulfil.
Using a lettings agency may benefit you more than trying to handle it all on your own.
Key One Holiday Homes is an expert holiday home solutions provider and manager helping landlords both locally and internationally manage and maximize their property’s profits. We handle everything from transforming your buy-to-let property into the go-to vacation home in Dubai to taking pictures, marketing, preparing it for incoming and outgoing guests, cleaning and sanitation, and ensuring maximum occupancy rates.
Dynamic Prices
Setting your price too high can make bookings slow and make guests feel overcharged. Similarly, setting it too low may hinder you from earning profit or potential customers can doubt the quality of your property.
Low rates are also more than likely to attract bargainers looking for a cheap deal who might not care for your holiday home.
Here are different approaches to pricing your holiday home:
- Price per night – the most common pricing model. Straightforward and easy to implement and manage.
- Length of stay – this strategy allows you to offer discounted rates for longer stays.
- Discounts and special offers – there are multiple deals you can offer your guests e.g., early-bird discounts, last-minute deals, and promotions like ‘book three, get the fourth for free.’
- Price per guest – this is also known as occupancy pricing. This strategy allows you to set a basic rate and then add an extra charge on top depending on the number of guests.
When setting a price, it is important to know the high and low seasons. Factoring your property’s location, its unique features, local competition, and your target guests can put a competitive edge on your price.
Benchmarking is also an effective way in deciding pricing strategies. Research the properties listed in the same vicinity as yours. Determine how much they are charging, what amenities they offer, and how they present their property. By comparing your holiday home against other listed properties, you can calculate how much you can charge as well as your potential rental yields.
If you are interested in turning your property into a beautiful holiday home in Dubai, getting more bookings, and maximizing your profits,
Source: SmartCrowd