As I have spoken with clients and read insights from industry leaders over the last week, I have compiled a list of strategies that those in the vacation rental industry are implementing in order to best deal with the overwhelming number of cancellations and changes they have faced.  Hopefully, some of these can be a help to you and your rental business. 

Cancellations 

Some hosts are trying to reschedule guests for later dates in order to not lose them as customers.  This follows the example of what many airlines and cruise companies are doing.  Some are even offering extra perks or days in order to keep customers.  One thing to keep in mind is that the traveler may rebook during a peak season when you would normally have much higher rates.  The travel industry will bounce back, and people will be ready to travel.  Rather than offer to change a guest’s dates you may want to just offer a voucher for the amount they paid which can be applied to a future reservation.  You will want to be able to book your property at a high rate once people start traveling again. 

If you take direct bookings, and you decide to give a refund to a guest, it would be reasonable for you to refund the guests money less any credit card processing fees that you had to pay.  It would be good to include this wording in your rental agreement if you have not already done so. 

If a renter is canceling because they are sick, check to see if they purchased any travel insurance.  They may be able to get a refund from the insurance company if they meet certain requirements. 

How to Fill Current Vacancies 

You can emphasize that vacation rentals have a significant advantage because they provide a place where people can be isolated.  You may also have to market to a different set of customers in order to fill vacancies during the coronavirus travel restrictions. 

• Staycations:  Some people still want or need to get out of their house, but cannot travel far.   
• Renting out your home as an office space for someone that cannot go to work:  Maybe their own home is not a suitable work environment and they need a place to go during the day. 
• Mid-term rentals:  If you have no short-term bookings for the next 60-90 days, you could try to rent the home on a longer-term basis.   
  • Traveling Nurses 
  • Workers who must stay in your area for business 
  • Foreign travelers who cannot return home 
  • Students who can no longer stay in dorms or need to isolate from roommates 
  • People who need a place to stay because their family members are in quarantine 
  • Furnishedfinder.com is a good place to advertise. 
• Many of these renters may try to demand lower prices.  You will likely have to reduce your prices to some extent, but be careful of taking on a careless renter that will cost you more money than you get paid. 

What to Emphasize in Marketing 

• Cleaning Procedures to Make Your Guests Feel Safe and Differentiate Your Home from Others 
  • Specific surfaces that are cleaned (remotes, keypads, doorknobs, switches, handles, etc.) 
  • Specific cleaners that you use 
  • Specific tools that you use (steam cleaners are a highly effective tool for items which cannot be laundered or sanitized easily – i.e. mattresses, curtains/blinds, cushions, etc.) 
  • Specify what you do not use (reusable sponges) 
  • All linens are clean including comforters and extra blankets 
  • All kitchen dishes are clean for each stay, not just ones used by the previous guest 
  • Details on how your housekeepers are being supervised to ensure proper procedures are followed 
• Features of the Home Rather Than the Area 
  • TV, movies, music, video games, home theater 
  • Recreational activities 
  • Board games 
  • Items to pamper guests (plush towels/robes, chocolates, gourmet coffee) 
  • Safety features 
  • Toys 
  • Items for pets 
  • Local delivery services 
• Emphasize the Positives that Are Still Possible with a Vacation Rental 
  • Getting away from home 
  • Spending time with family 
• Update Your Listing Pictures and Text to Show These Items 

Using Extra Time You May Have Right Now 

• Closely monitor and adapt to the pricing and availability of other rentals in your area.  Some rentals may go off the market in this difficult time which means once things open back up, there may be fewer rentals in your area. 
• Revamp your website or start a website if you don’t have one. 
• Take new pictures of your units while they are empty. 
• Do some deep cleaning or maintenance. 

Ideas for Property Managers 

• Be proactive in communicating with the property owners.  Let them know what you are doing to try to keep their property booked. 
• Be prepared in case owners contact you and say they want to stop using your management service. 
  • Listen to their concerns and situation. 
  • See what their idea is for moving forward and see if you can be a part of it or offer something better. 
  • Help them see that you are on their side and are working to help them succeed. 
  • Have other options available instead of canceling management service completely. 
    • Offer to postpone some expenses that you would normally bill to the owner so that they will have more cashflow. 
    • Let the owner take over some of the work temporarily in exchange for a lower commission.  Maybe the owner could help with cleaning, guest relations, or marketing.   
    • You may offer a temporary discount on your services, but make sure you have set time that your price will go back to normal. 
    • Instead of offering a discount, maybe you could trade or barter something with the owner. 

We realize that some of these ideas will work better in some locations than others.  Hopefully, you will find an idea that fits your situation.  Our goal is to provide you with as much information as possible so that you can make the best decisions for your vacation rental business! 

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About Vacation Rental Bookkeeping 

Ryan Gallagher is a virtual bookkeeper who specializes in providing accounting services to short-term and long-term rental owners and managers. He strives to take the burden of bookkeeping off business owners as well as help them stay on top of their finances, set and meet goals, and make their rentals the best they can be. Contact Ryan directly to see how he can help your business. 

www.vacationrentalbookkeeping.com