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Mountain View, Sunnyvale, and Los Altos Vacation Rental Management: a Snapshot

We’ll begin with a glance at key AirDNA statistics on vacation rentals in three Silicon Valley cities.

MOUNTAIN VIEW
Number of active rentals: 761 (54% entire home rentals)
Average daily rate: $204
Average occupancy rate: 73%
Average monthly revenue: $3,014
[source]

SUNNYVALE
Number of active rentals: 708 (46% entire home rentals)
Average daily rate: $179
Average occupancy rate: 74%
Average monthly revenue: $2,469
[source]

LOS ALTOS
Number of active rentals: 142 (50% entire home rentals)
Average daily rate: $231
Average occupancy rate: 68%
Average monthly revenue: $3,566
[source]

All three cities have room for occupancy improvement. Let’s say, with optimized vacation rental management, the average occupancy rate in each city rises to a level that raises average monthly revenue by 25%. In Mountain View, average monthly revenue would rise to $3,767 – an increase of $753 per month and $9,036 per year. In Sunnyvale, the increase would be $617 monthly and $7,404 annually. And in Los Altos, a 25% increase in average monthly revenue via property management improvements would result in monthly revenue growth of $891 and $10,692 a year.

What does it take to achieve that enviable level of improvement – or more? We spell it all out in a FREE guide,

In this complimentary guide for property owners looking to optimize every major aspect of vacation rental property management, you’ll discover:

  • How to maximize your exposure on the web (Hint: Airbnb is just the beginning)
  • What you need to know about online listings on sites like Airbnb to turn browsers into renters
  • The importance of optimizing communication with inquirers and renters to maximize your bottom line
  • What every vacation rental property owner should know about price optimization
  • Details that heavily contribute to vacation rental success
  • The strategic side of vacation rental ownership
  • How to determine if you’re a candidate to manage your vacation rental yourself or go with a full-service vacation rental management firm

The guide is free and without obligation. It’s a quick read. We’re confident you’ll find it valuable.

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Los Angeles Vacation Rental Management: Optimizing Revenue in a Volatile Environment

What’s new in the largest vacation rental market in America’s largest state? Plenty.

As of November 1, 2019, you can only list one Los Angeles vacation rental property on platforms like Airbnb. The city’s new Home-Sharing Ordinance says you’re required to register with the city, pay an $89 annual fee, and include a valid registration number in each listing.

But wait … there’s more.

That single LA property you’re allowed to rent on a short-term basis must be your primary residence. And you’re only permitted to engage in home-sharing for no more than 120 days per year – BUT you can apply for an “Extended Home-Sharing Registration” for $850, and if you meet the criteria, gain additional rental days.

Now, before you say, “Thanks, but I’ll just keep doin’ what I’ve been doin’ and things should work out just fine,” keep this in mind: fines for listing a property without registering are $500 a day, and rise to $2,000 a day for listings beyond the 120-day maximum (for those interested in math, the latter adds up to $14,000 per week or around $60,000 per month in fines).

That’s the current LA vacation rental situation relating to owners in a nutshell. But then there’s Santa Monica, with its own Home-Sharing Ordinance, adopted in 2015 and last amended in September, 2019.

And what if your vacation rental property is located in West Hollywood? Well, there’s a separate licensing process and set of requirements for that city within a city, with fines for non-compliance running as high as $5,000. And to top it off, WeHo officials have warned owners that “continued non-compliance may result in … criminal prosecution.”

But let’s return to the City of Angels.

Last year, LA whole-home vacation rentals alone accounted for a whopping $2.5 billion in revenue. Clearly, big bucks are involved here – for the city AND property owners.

Given recent changes, it’s never been more important to optimize every aspect of vacation rental management on and off Airbnb. Rather than run the risk of misinterpreting local regulations or making other costly mistakes, many owners are seeking the services of the best Los Angeles vacation rental manager they can find.

The right LA vacation rental management company will optimize your property’s turnover rate throughout your legal rental period each year; ensure housekeeping is done properly on a consistent basis; maximize your odds of achieving Superhost status on Airbnb; make it easy to participate in the “sharing economy”; and help you make the right moves in a changing vacation rental environment.

That’s where we come in. One Fine BnB is capable of handling most everything and relieving you of a big burden, so you largely sit back and collect a direct deposit each month. Schedule a complimentary consultation with a One Fine BnB Airbnb expert on short-term vacation rental management in Los Angeles, Santa Monica, West Hollywood, Pasadena, and other areas in the LA Basin. If you qualify, you’ll receive a free revenue projection for your property. And you’ll learn how One Fine BnB – an innovator in Airbnb vacation rental management – makes the entire process surprisingly easy for owners.

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12 Keys to Selecting the Best Service for Outsourced Airbnb Property Management

Airbnb can be very lucrative for owners of investment properties and second homes – especially with full-service Airbnb property management by an outstanding team.

Outsourced Airbnb Property Management

Here are a dozen keys to optimized management for owners who prefer to outsource Airbnb property management:

1. THINK BEYOND AIRBNB – Promoting your property on Airbnb is a “must,” but limiting your exposure to a single site is less than optimal. Your property should be visible on 50+ online destinations. The best Airbnb management companies think beyond Airbnb.

2. EMPLOY THE “SECRET WEAPON” OF AIRBNB LISTINGS – Remember two words: “professional photography.” Your ideal full-service vacation rental property management company won’t have a staffer walk around your unit shooting photos with an iPhone; they’ll invest in first-rate photography to show off your property’s unique characteristics and make it look irresistible on Airbnb and other relevant sites. What’s more, they’ll write listings that go beyond the basics and rock people emotionally.

3. SEE THEIR AIRBNB LISTINGS IN ACTION – Ask the vacation rental property manager you’re considering to share actual listings they’ve created for clients on sites like Airbnb. See if you find the words and pictures enticing. Pay particular attention to comments from guests and ratings – including whether clients have achieved coveted Superhost status.

4. DEMAND YOUR PROSPECTS AND GUESTS RECEIVE EXCELLENT CUSTOMER SERVICE – “Prospects” are people thinking about becoming your guests. Before booking, they often send inquiries via sites like Airbnb. Each inquiry has value that diminishes as each minute rolls by without an answer. “Guests” are, of course, people who book a stay in your property. When they have questions or issues, the quality of service they receive will directly impact whether they give you a good review and ultimately return. You should expect both groups to receive responses that aren’t just prompt but are clear, complete, and courteous.

5. OPTIMIZE YOUR RATES, EVERY SINGLE DAY – Vacation rental rates on sites like Airbnb are more science than art. If a property manager responds to your question on price optimization with something like, “We’re experienced and know what we’re doing,” it’s a good idea to look carefully at other options. The right vacation rental property management service will provide specifics on price optimization, which should be a daily occurrence. If your prices aren’t optimized each day, you’re leaving money on the table.

If your prices aren’t optimized each day, you’re leaving money on the table.

6. THINK STRATEGICALLY – A good vacation rental property management service will handle all the basics, including marketing, inquiries from prospects, questions from guests, housekeeping, feedback solicitation, and more. A great one will be a strategic resource and serve as your trusted advisor on big decisions like potential property improvements – and even help you choose your next investment property and city, whether it’s Portland, Orlando, Houston, Palm Springs, Los Angeles, or somewhere else.

7. USE A TECH-SAVVY MANAGER – The best vacation rental property management companies are using smart technology to give property owners a competitive edge. They use advanced technology in price optimization, call tracking, email systems, guest history, housekeeping metrics relating to cleaning services, and more. Technology helps ensure your turnover speed (interval between guests departing and arriving) is optimized, to help maximize your bottom line.

8. KEEP PROPERTY DAMAGE FROM EATING INTO YOUR PROFITS – Fact is, some Airbnb users are far more likely to cause damage to property than the vast majority. That’s why all of your guests should be screened. Cleaning services hired by your vacation rental property management service should inspect your unit between each guest stay to identify guests responsible for any damage and electronically document evidence. When a deposit isn’t collected by a website, guests should submit a credit card and sign a rental agreement with your manager to ensure you aren’t financially responsible for damage caused by a guest. Successful vacation rental carries costs, but property damage caused by a guest shouldn’t be one of them.

9. AVOID “ONE SIZE FITS ALL” MANAGEMENT – In vacation rental property management, a “one size fits all” approach doesn’t fit all cases. The right manager will customize a package that fits your situation perfectly. But they’ll also have standard operating procedures designed to ensure a consistently high-quality experience for guests. For example, because guests typically expect housekeeping that exceeds their cleaning standards at home, we always use professional cleaning services. And while we want new clients to give us ample time to demonstrate the value we bring, we don’t insist on locking new clients into lengthy agreements.

10. PAY YOUR MANAGER BASED ON PERFORMANCE, BUT DON’T OVERPAY – Vacation rental property managers typically receive all or most of their pay on a percentage-of-revenue basis. So, the more you earn from guests, the more they earn. As one might expect, some managers charge a lower percentage than others (One Fine BnB charges as little as half the percentage of some competitors). Very often, the service charging the highest rate isn’t the one providing the most services. On that note, it’s crucial to get a clear idea of what is and isn’t included in a potential manager’s monthly percentage-based fee, so you’re able to compare your options on an apples-to-apples basis.

It’s crucial to get a clear idea of what is and isn’t included in a potential manager’s monthly percentage-based fee, so you’re able to compare your options on an apples-to-apples basis.

11. ASK ABOUT A GUARANTEE – Traditional property managers haven’t generally offered a performance guarantee. In fairness to our competitors, very often, a guarantee of success is impossible to make in advance. But we’re proud to say One Fine BnB was, to the best of our knowledge, the first in the industry to offer guaranteed rental income to select clients.

12. CHOOSE THE AIRBNB MANAGEMENT OPTION THAT ENSURES YOU GET PLENTY OF R&R – An essential part of a property manager’s job is to make your life easier. After everything is in place, your ideal full-service vacation rental property management company will enable you to largely sit back and collect a check each month. That’s precisely what we do for clients at One Fine BnB. Intrigued? Schedule a no-cost, no-obligation consultation with us on your Airbnb vacation rental opportunity here.

 

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Get Everything You Need to Know About Price Optimization for Vacation Rentals – in Under 5 Minutes

Price Optimization for Vacation Rentals

More than a fancy marketing term, price optimization raises vacation rental revenue by as much as 25%.

So, what is price optimization, how does it work, and what’s the best way to start using it to raise revenue on Airbnb, HomeAway, Vrbo, and other sites?

As it sounds, price optimization is about optimizing pricing on your vacation rental property.

Before we go any further, it’s important to add that unless vacation rental pricing is optimized daily, it isn’t true price optimization.

Price optimization in vacation destinations like Las Vegas, Fort Lauderdale, Nashville, and other hot areas should include a wide variety of factors. “Comps” (comparable properties) need to be continuously reviewed, considering a full range of factors that contribute to pricing on a given day.

On that note, as a vacation rental property owner, you’re not just competing against owners of private houses, townhouses, condo hotel properties and the like; among many users of sites like Airbnb, you’re also competing against conventional hotels (yes, that Westin down the road may be your frequent competition). Their daily prices are data that must go into your price calculation … if you’re aiming for real optimization.

And as they say in those middle-of-the-night TV commercials, “But wait – there’s more.” When that big music festival inks an agreement to stage their event in Nashville in two years, pricing on those dates should quickly reflect that reality.

Besides special events, holidays and off-peak periods must be part of daily price optimization. Look at it this way: At the end of the year, it’s all about your annual bottom line. Some revenue during quieter times will be much better than no revenue – and be a serious contributor to optimization.

On top of all that, price optimization should rapidly reflect legislative or regulatory changes, as well as site commissions that can impact your bottom line.

Vacation rental property owners who’ve tried to do all this on their own have generally been unable to pull it off – even when using tools of different sorts. Fortunately, at no added cost to you, the right full-service vacation rental property management service will apply advanced technology to optimize your pricing and help maximize your bottom line throughout the year. In many cases, the lift in revenue from price optimization covers the cost of a vacation rental property management company that takes care of everything and allows you to sit back and collect a check each month. 

Find out more about optimizing the bottom line of your vacation rental using Airbnb and other sites. Download Capitalizing on the Vacation Rental Boom: 8 Keys to Success.

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Why Many of the Highest-Earning Vacation Rental Owners Use a Full-Service Property Management Company

Let’s say you’ve decided to become one of the 2.9 million hosts on Airbnb. Your aim: earn as much money as possible – as fast as possible – while enjoying your vacation rental property each year.

As you consider the possibilities, you find yourself saying something like, “Surely I’ll earn more if I keep all the revenue, rather than turn over a percentage to a vacation rental property management service.”

If that’s you, consider this: whether you act as your own vacation rental property manager or hire a full-service vacation rental property management company, your bottom line will ultimately depend on this simple calculation:

Revenues – Expenses/Costs = Profits

To optimize profits, let’s start with the revenue side. Your vacation rental property absolutely should be listed on Airbnb – and on 50+ other sites. You’ll want listings to take full advantage of each site’s unique characteristics, with words and photography that compel viewers to act.

After your listings go live and you begin hearing from potential guests online (in the vacation rental property management industry we call them “inquirers”), you need to respond to each inquiry in a complete, polite, and timely manner – even if it’s 10 p.m. and you’re exhausted after a long day. If you don’t, you’ll reduce the quality of the experience before a guest even walks through your door.

While communicating with inquirers, it’s important to not “double book” – a common mistake among do-it-yourselfers in vacation rental property management (particularly when listing on multiple sites). When you book different guests for the same dates, someone ends up being disappointed.

A key contributor to revenue is, of course, pricing. Anyone who prices their property at the same rate throughout the year is guaranteed to be missing out on substantial income. Optimal pricing means scanning supply and demand of comparable properties daily – factoring in holidays, special events, and hotel room prices.

Vacation rental owners who attempt to perform price optimization manually tend to find the process time-consuming and almost impossible to pull off.

Fortunately, the right full-service vacation rental property manager will use technology to perform daily rate optimization … as part of their fee. And get this: the increased revenue from daily rate optimization may cover the entire cost of your property manager!

Now let’s return to communication, which by no means ends at the inquiry phase. Booked guests need to hear from you before arrival. If a problem comes up during a stay, they’ll want it quickly addressed. This is particularly true of urgent issues – including the 3 a.m. type. And after each stay, your guests should be encouraged to do something that contributes heavily to revenue: post a review.

On that note, let’s look at a significant contributor to ratings on sites like Airbnb: the expense side. Your property should be thoroughly cleaned before the arrival of guests (the right property manager will include this as part of the management fee). The unit should be sufficiently stocked with starter supplies like shampoo, toilet paper, dishwashing liquid, and more (the right manager will also include this as part of the fee).

So, feel you’re up to the task? If your answer is a big “HECK NO!”, you’ve discovered why many of the highest-earning vacation rental owners use a full-service property management company. 

Find out more about optimizing the bottom line of your vacation rental using Airbnb and other sites. Download Capitalizing on the Vacation Rental Boom: 8 Keys to Success.

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The Best Vacation Rental Property Managers Are Strategic

As we pointed out in our last post, when managing vacation rentals promoted on Airbnb and elsewhere, the devil is indeed in the details.

But there’s more to the art and science of vacation rentals than optimizing tactical elements like listings, pricing, cleanliness, customer service, and use of the latest technology.

There’s the strategic side. For example, determining if it’ll be cost-effective to make a major furniture investment in a Palms Place Hotel and Spa vacation rental in Las Vegas. Or whether that next vacation rental property purchase should be in the Mondrian South Beach condo hotel on Miami Beach or in Fort Lauderdale’s Conrad hotel.

Best Vacation Rental Property Manager

Most owners of second homes and investment properties who go into vacation rentals lack the skill to make the right strategic moves entirely on their own. That’s’ where a full-service vacation rental property management service comes in.

When deciding on the Big Stuff, your property management company should be a key resource. After all, they’ve repeatedly seen what produces the best return on property investment for owners. Strategic advice is a value-added service you should expect from your manager.

Find out more about acting strategically and optimizing all major elements of vacation rentals, on Airbnb and everywhere else. Download Capitalizing on the Vacation Rental Boom: 8 Keys to Success.

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How to Get Top Dollar for Your Vacation Rental – Every Day of the Year

It’s one of the most common mistakes made by do-it-yourselfers renting out their own vacation rental properties.

It inevitably results in less-than-optimal rental revenue.

The mistake? Charging the same rate … every day of the year.

annual revenue for property owners

Maintaining a set fee for your vacation rental means it’ll at times remain unoccupied when it could be earning you money. At other times, you’ll reach a state economists call “excess demand.”

When the latter happens, owners may say things like, “My place is booked solid for weeks.” Property owners in this boat may not realize it, but they could be losing big bucks by not charging enough.

Fortunately, there’s an easy way to avoid these losses.

Software technology is available that continually scans supply and demand on comparable properties and even hotel rooms. It takes into account holidays, special events, and even site commissions, to optimize rates daily across all travel sites, including Airbnb.

Daily rate optimization raises annual revenue for property owners by 15%-25%. And all that money goes right to the bottom line.

This lucrative technology is out of reach of typical property owners, but it’s standard for all clients of One Fine BnB, the full-service vacation rental property management company.

Think of daily rate optimization as a key to proper “revenue management.” Because it is.

Schedule a complimentary consultation with us on optimizing revenue from your vacation rental property … every single day.

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Optimizing Revenue From Your Vacation Rental Property Requires More Than Airbnb

Maximizing income from your vacation rental property means making the most of Airbnb. But vacation property management is about much more than Airbnb management.

airbnb property management

Many advertising textbooks discuss the contribution of reach to marketing success. By reaching more prospects for your vacation rental, you raise demand. As a result, you command higher fees.

To make this happen, your property should be shown where short-term vacationers are searching. Besides Airbnb, your property can and should be listed on 50+ sites, including Booking.com, Expedia, HomeAway, KAYAK, TripAdvisor, and VRBO – plus Google, social media sites, and other online locations.

Now, you may be thinking, How on earth will I ever be able to do all that? Short answer: You don’t have to. Even if a property owner somehow manages to pull all that off on their own, they’ll find it hugely difficult to track reservations from multiple sources and avoid double-booking. But the right full-service property management company will take care of all of these listings and resulting reservations for you, and let you largely sit back and collect a check each month.

To find the ideal service in that sea of property management companies, it’s not enough to search for Airbnb management companies. They’ll tend to be good at only one aspect of vacation rental property management. Quite possibly, for lower fees than an Airbnb-only company, you can get full-service vacation rental management that ensures your property’s presence is optimized wherever it belongs.

See for yourself by speaking with One Fine BnB. Take the next step and schedule a complimentary consultation on optimizing revenue on your vacation rental property.

“One Fine BnB always has their customers and clients in their best interest. They are very professional and their rates are very reasonable. This company’s ultimate goal is to make sure you get the most for your property IF done within the necessary tools needed to have a successful vacation rental. Highly recommended if you want your home to generate income!” – Chrissy Taks on Google