These 17 vacation rental tips for owners—from taking great photos to implementing smart pet and cancellation policies—can put you well on your way to vacation rental success.

Vacation Rental Tips for Owners at Every Stage

Starting Stage: Embrace a business mindset from the outset. Focus on market research, selecting the right property type, and presenting your property through high-quality photos to set a solid foundation for success.

Operating Stage: Maintain your rental to the highest standards, communicate effectively, and strategically set policies to optimize guest satisfaction and bookings.

Optimizing Stage: Enhance your rental’s appeal and financial performance by diversifying listing platforms, applying dynamic pricing, and rigorously benchmarking against the competition.

There’s no one-size-fits-all approach to what makes a vacation rental successful. Yet, some vacation rental tips for owners ring true whether you’re a seasoned operator or just getting started.

After all, the tips you use to start a successful vacation rental business are the same advice you can follow as you operate your portfolio—and even optimize it. Follow these data-driven tips to create positive guest experiences, an enticing online impression, and a strong revenue flow whether you’re operating one property or one hundred. 

Your pricing strategy should be as unique as your rental property.

Best Tips for Starting a Vacation Rental Business

Running a vacation rental business is both an art and a science, combining market data, property-level insights, and your instincts for what makes a property special. These vacation rental tips for owners at the beginning of their hosting journey will help get you off to a profitable start. 

1. Treat Your Vacation Rental as a Business, Not a Hobby

When it comes to vacation rental tips for owners, this advice is key: Always keep in mind that your vacation rental is a business and that business is shaped by the decisions you make. 

When you become an Airbnb or Vrbo host with a business mindset, you’ll begin to better understand your product, your market, and your competition. You’ll discover your ideal customers and how to reach them, and you’ll aim for clear goals and create effective strategies for how to reach them.

Successful businesses are data-driven, and you should be, too, with specific and measurable goals. You’ll need relevant data to see what’s working and what’s not to make decisions on the next steps. 

For example, by uploading your listings into a tool like the My Properties interface in the AirDNA app, you’ll unlock need-to-know metrics that can help you competitively price and manage your properties. 

2. Pick the Best Property Type for Your Goals

Before the COVID-19 pandemic, buying a vacation rental property was a solid investment for virtually all property types. From the darkest days of the pandemic to the present, however, the best type of property for vacation rentals has been larger homes. 

It makes sense–guests from cramped, urban areas craved more space. “Friend bubbles” felt safer renting large, spacious properties spread apart from other homes. Though times have changed, many of those preferences remain. 

Our data shows that hosts with Airbnb investment properties with 5+ bedrooms routinely performed better than hosts with smaller spaces throughout the pandemic. If you can afford a large property, the numbers say it’s an excellent investment. How to identify the best type of property for Airbnb depends on a number of factors, though. For a look at the best places to invest in a vacation rental, see AirDNA’s report. ​

A picture is worth a thousand words, as well as several thousands of dollars if you take good Airbnb photos. The more (representative) photos you have, the higher your occupancy rate. 

Be sure to include 20-40 verified photos. Guests want to know that their experience matches the listing. Give them peace of mind by including verified photos, and see your effort pay off with higher occupancy rates.  

Don’t sweat it if you’re unconfident in your photography skills. There are plenty of online resources that teach you how to take excellent photos with your smartphone. But, if you’d rather hire a professional Airbnb photographer, the short-term rental giant makes it easy to do. 

4. Invest in Comfortable Bedding and Furnishings

Creating a comfortable and inviting environment is more than just a hospitality gesture—it's a strategic move that can significantly impact your vacation rental's success. Quality bedding and furnishings contribute to positive guest experiences that often lead to better reviews and repeat bookings. Prepare your rental for Airbnb by investing in high-quality mattresses, soft linens, and stylish furniture.

5. Provide Clear House Rules and Expectations

Establishing clear house rules and setting guest expectations is one of the foundational vacation rental tips for owners. Transparent communication not only ensures a smooth and enjoyable stay for guests but also helps prevent misunderstandings and potential conflicts.

When crafting house rules, consider factors like noise policies, check-in/out procedures, and any specific guidelines unique to your property. Communicate these rules through your listing and in-person welcome materials. 

Once you’ve listed your property and flushed out the details, the ongoing work of operating your Airbnb begins. Don’t overlook these seven tips as you do. 

1. Implement Instant Book on Airbnb for Better Occupancy Rates

In our fast-paced world, people expect instantaneous buys and bookings. They don’t want to wait for you to accept their reservation request. Do your guests–and your occupancy rate–a favor by implementing Instant Book. 

By giving your guests the option to book immediately, you guarantee their spot and you boost your ranking on Airbnb’s search results page. If you have stellar photos, you’re among the top listings, and guests can book instantly, you can anticipate a 4.1%–5.7% increase in your occupancy rates. 

Keeping your rental squeaky clean is good for business. AirDNA data says it all:

Before the pandemic, hosts who scored high on cleanliness enjoyed a 2.3% occupancy rate increase compared to hosts who scored lower. 

In 2021, hosts with high cleanliness rates saw their occupancy rates increase by 6.8%.

In 2023, high cleanliness ratings (4.98 or above) are more likely to earn you a Guest Favorites badge.

Should you set a steep fee in case you have inconsiderate guests? Or should you lower your Airbnb cleaning fee to attract potential guests? As a host, you have to do what’s right for you and your goals. AirDNA data shows that cleaning fees need to align with the property size and its location. Check out our blog article with in-depth tips for cleaning fees.

3. Be Pet-Friendly—And Earn More Revenue

Should you allow pets? Our vacation rental tips for owners say yes. The data shows that pet-friendly vacation rentals earn more than those that don’t allow pets. Take the steps to make your rental pet-friendly and choose appropriate pet fees so that you can rest easy should a four-legged guest ruin a rug 

4. Commit to Prompt and Responsive Communication

Timely responses to inquiries, booking requests, and guest concerns contribute significantly to guest satisfaction and overall positive reviews. Adopting efficient communication practices demonstrates professionalism and care, instilling confidence in guests and potentially leading to repeat bookings. Consider establishing a communication routine that helps address any issues promptly.

AirDNA’s vacation rental pricing tool uses data-driven recommendations to propose the best daily rates.

5. Choose the Right Cancellation Policy 

No two Airbnb hosts will agree on which cancellation policy is best. Cancellation policies are split somewhat evenly among hosts. Whatever you decide, be strategic. Strict cancellation policies often make more sense for hosts with nicer properties. These hosts can usually afford to lose a few bookings here and there. 

On the other hand, hosts with more modest properties generally benefit from a flexible policy that allows guests to cancel up to the day before their stay. 

Embracing smart home technology is one of the more savvy vacation rental tips for owners, adding a modern touch to your property. Integrating devices like smart thermostats, keyless entry systems, and automated lighting elevates the property's appeal, contributes to energy savings, improves security, and provides convenience and efficiency for guests.

Guests don’t just expect a palace to stay, they expect an experience. You can’t get by on just offering plush towels, mid-tier linens, and some spotty Wi-Fi. Guests expect more, and the most successful vacation rentals have the most in-demand amenities for their market. The best Airbnb amenities help your property stand out from the rest and help you earn more money than competitors, depending on your market.

Best Tips for Optimizing Your Rentals—and Your Revenue

Though operating your rentals is good, continuously improving them is even better. These are the best tips for vacation rental owners with a growth mindset, whether boosting the revenue of one property or earning more on an entire portfolio. 

One of the biggest reasons guests choose vacation rentals is to stay in a unique space. It can be difficult for your property to attract the most selective guests if it blends in with the rest. If you’re eyeing a new property, go for a unique one. Our article on How to Identify the Best Type of Property for Airbnb can help you determine which real estate can get you the most revenue.

Every vacation rental host wants to know how to get five-star reviews and even become a Super Host. Of all of our vacation rental tips for owners, this one might be the simplest: be a good host and offer a great experience. 

If you have a single property and can be pretty hands-on, ensuring guests have everything they need is pretty easy. It’s when you scale your Airbnb count that it becomes harder to keep an eye on guest satisfaction. The data shows that non-professional (read: hosts with only one or two properties) perform better than hosts with a dozen (or dozens of) properties. 

If you are looking to scale your vacation rental operations or hire a property manager for your sole property, be sure to choose a top-rated Airbnb property manager. Our data shows that higher guest ratings resulting from excellent hosting brings in higher average daily rates (ADR), occupancy, and revenue per available rental (RevPAR).

Expanding your presence across various listing platforms is a strategic vacation rental tip for owners who want to boost their property's visibility and booking potential. Instead of relying solely on one platform, broaden your reach and tap into different traveler demographics and preferences.

Diversification reduces the risks associated with dependency on a single platform. Each platform has its unique features and user base, allowing you to showcase your property to a wider range of potential guests. 

No host optimizes their revenue, occupancy rate, ADR, or guest satisfaction by setting their pricing and never updating it. One of the most essential vacation rental tips for owners who want to boost their performance is to leverage dynamic pricing. 

This approach lets you adjust your nightly rate to match supply and demand in your area. If there’s an event in your area a few months down the road, up your price to capitalize on increased demand. If it’s the slow season, adjust accordingly there, too. 

AirDNA’s Smart Rates does the heavy lifting for you. Besides taking stress off your plate, dynamic Airbnb pricing can increase revenue and help you outperform other properties in your market.

5. Benchmark Your Property’s Performance

If you’re serious about increasing your Airbnb property rates, you need to get serious about benchmarking your property’s performance. The most successful properties benchmark against their competition. 

In the AirDNA app, you can connect your listing, create a custom comp set, and see your property’s free Booking Performance Score. Think of it like a credit score for your vacation rental — one simple metric to keep weekly tabs on your property's performance compared to the competition. 

You’ll also be able to create a custom comp set to keep tabs on your competition’s performance. Doing so will help you make the changes you need to outpace competitors—or stick to a strategy that’s already working.

One of the biggest questions that vacation rental owners have is “How do I succeed in vacation rentals?” It’s a big question with multiple answers, but our vacation rental tips for owners above break it down into more manageable queries, including:

Q: How do I attract guests to my property?

A: Quality photos are crucial to showcasing your property, but you can also make it easier for guests to choose your vacation rental with Instant Book as well as fair cleaning fees, cancellation policies, and pet-friendly options.

Q: How do I net satisfied customers who will give good reviews?

A: Pay attention to the little details that translate to an excellent experience for guests, including cleanliness, uniqueness, host responsiveness, and stellar amenities.

A:  Think of yourself as an entrepreneur, not a hobbyist, who’s leveraging data to make strategic decisions, not arbitrary ones. Invest in the right properties, and use the right tools to dynamically price and benchmark your performance.

Read our 17 vacation rental tips for owners at every stage, whether you're just starting out or a seasoned host.

Vacation Rental Tips for Owners at Every Stage

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