Which Rental Renovations Make the Most Sense?
We’ve all been there. You’ve read the reviews, poured over the pictures, and picked out your perfect Airbnb or Vrbo from a long list of potential vacation rentals only to arrive at your destination and find your short-term-rented slice of paradise or cozy cabin is in need of a little of TLC.
The bathroom needs work, the kitchen is straight out of a 1960 Sears-and-Roebuck catalog, and that you’re pretty sure your phone’s flashlight isn’t supposed to serve as the primary source of light. Simply put, the home needs a makeover. Trust us, the owner of the vacation rental probably knows this and is cringing. Reviews matter in the short-term vacation rental industry and the bad ones are piling up. Time to pull the trigger on a renovation.
Return on investment (ROI) is the name of the game when owning and operating a vacation rental business, so you want to put smart money in smart places. That means getting rid of VCR-integrated box TVs and shag carpeting, sure, but forward-thinking vacation rental hosts are building the value of their rental by putting money into the bones of the home, simultaneously increasing the properties’ value (new renovations can have an 80 percent ROI upon selling) and pushing the re-set button on your guests’ experiences and reviews.
Have You Ever Been to a Shabby Hotel? Would You Go Back?
It’s important to remember that as a host you’re effectively competing with Hilton, Best Western, and other hotel chains. With this in mind, preventive maintenance is absolutely mandatory. A plumbing service report is a time and money saver. Chances are you don’t really know the condition of your pipes, and your home inspector probably doesn’t either.
This goes for the wiring as well, if your home is an older one, make sure you don’t have active knob-and-tube style wiring or aluminum wiring, as these are a major fire hazard and liability exposure. Have a licensed, professional electrician come to your home and check out panels, outlets, and wiring. These inspections are inexpensive and bring to light any lingering issues your home might be suffering from.
Adding Heating/Cooling Adds Value and Expenses
Upgrading your vacation rentals ‘ HVAC and Heating systems has a significant impact on your monthly expenses as guests commonly are not as responsible with the AC and Heat as they are in their own homes.
Put your renovation budget in the right spots, and make the home safe and not prone to time-sucking, booking-losing repairs. With a focus on the items that make the home livable and secure, you’re keeping guests happy and secure while maximizing your ROI on your short-term vacation rental.
Quote Your Short-Term Vacation Rental Today
Interested in a policy to protect you and your business from liability and damage claims? Proper Insurance is the nation’s leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, squatters, and more.
Proper’s policy covers vacation homes, townhouses, condos, duplexes, cabins, cottages, apartments, and more. With expert vacation rental underwriters, we can tailor a policy specific to your short-term rental property.
