If you’ve recently opened a vacation rental, then you might find it difficult to make a substantial profit from it initially. Your guests are looking for a memorable, safe, and comfortable gateway that feels like a ‘home away from home.’ However, you’re probably unable to provide that.

To increase bookings and provide an excellent guest experience, you’ll need home improvements. By adding the right furnishings, smart home appliances, and other upgrades, you can increase the value of your vacation rental and maximize your income.

In this blog, we’ll discuss the factors that impact your rental’s profits, provide tips on how to increase profit with home upgrades, and more.

What Affects Your Vacation Rental’s Profitability?

The most important variable that affects your vacation home’s profitability is its location. If the property is near popular attractions, you can easily maintain a hefty year-round revenue.

Let’s take the breathtaking location of Los Cabos in Mexico as an example. Tourism in Los Cabos is booming, with almost 3 million yearly visitors because of the natural terrain and comfortable environment. It’s also known for its luxurious accommodations and accessibility to a relaxed vibe.

That’s why there are thousands of vacation homes for rent in this city. According to Del Mar Los Cabos, the vacation homes in Los Cabos offer exceptionally modern and traditional amenities with a hint of elegance and peace.

People from every corner of the world would prefer living in luxury Cabo rentals for their distinctive location, premier accommodations, and exclusive communities. Renters in Cabo usually charge guests anywhere between USD 290 and USD 420 per night.

Other than its location, your vacation home’s profits will be affected by the following factors:

• A low occupancy rate based on the property’s size
• Inadequate furnishing options and bad interior design
• Improper amenities and a lack of security provided
• Not considering regular maintenance, property management, and repairs

3 Improvement Tips for Your Vacation Rental

You can improve your rental home’s ROI by focusing on energy efficiency, cost efficiency, and modernization. For instance, you can invest in a greener energy source like solar panels for better insulation and emergency power backup.

While this is a good option, you can also consider the following improvement ideas to boost the vacation rental’s revenue:

#1. Install Smart Home Appliances

The global smart home appliance market is expected to grow at a CAGR of 11.04%, generating USD 92.20 billion by 2028. It proves that the use of smart appliances has become common. These can make life easier, simpler, and more comfortable. Examples include smart kitchen appliances, voice-controlled assistants, robot vacuums, smart lighting, etc.

Hence, having smart home appliances in your holiday rental will surely attract more guests. For instance, if you get a digital thermostat in your rental property, then the renters can control the house’s temperature remotely.

Similarly, smart sensors, security cameras, and smart locks will enhance your property’s appeal. Vacationers would prefer to have these security features to keep their belongings safe. Even smart TVs or smart lighting features could enhance your rental property’s appeal.

#2. Focus on the Curb Appeal

First impressions matter, especially in vacation homes. However, many vacation rental owners only focus on the home’s interior and often overlook the importance of maintaining a well-decorated exterior.

Of course, you’d want your guests to feel a comfortable vacation vibe the moment they step foot on the curb. That’s why you should maximize and improve the vacation home’s curb appeal for your guests.

You can follow these tips to improve the curb appeal of the house:

• Ensure the entrance is welcoming and aesthetic: The front door and the exterior walls should have fresh paint without any stains. You can pressure-wash the deck and driveway and ensure that the roof doesn’t have any damage or leaks. Potted plants and flowers could also make the curb look appealing.
• Keep landscaping at the top of your maintenance list: The garden and lawn should be well-kept because they can impact how guests perceive your property. Remember to remove weeds, trim hedges, and mow grass regularly to enhance the visual appeal.
• Focus on outdoor lighting: Keeping the front of the property well-lit will ensure safety and enhance the appealing atmosphere. You can also install solar-powered pathway lights and decorative string lights.

#3. Upgrade the Interior Design

Today, visitors want simplicity and a down-to-earth design in vacation homes. Hence, you’ll need to select comfort without compromising on style to win over your guests’ hearts.

Change the wall colors to a neutral tone with soft beige, white, and pale blue to make your guests feel calm. Along with this timeless appeal, you need durable and nature-inspired furniture that can withstand consistent wear and tear. Look for stain-resistant fabrics for sofas, curtains, beds, and blankets. You can also hang tasteful decorations like art prints, fresh flowers, etc., that go well with the theme.

Furnishing the patio and adding an outdoor space could help enhance the home’s curb appeal. Moreover, don’t forget to add rustic-looking chairs and tables.

For all that, you should hire an interior designer. They could help you chalk out a minimalistic idea to enhance the vacation rental’s appeal based on recent trends and market demands.

In conclusion, maintaining a positive guest experience is crucial for higher rental income and increased demand. Your vacation rental will attract more guests if you follow the tips mentioned in this blog. For example, you can boost revenue with improved interior design, enhanced curb appeal, and smart appliances.

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Anthony M. Salvatori

Anthony M. Salvatori is President of Steadfast Painting Solutions. He has 20 years of painting experience and has been operating his own company for nine years. Salvatori is proud to be leading such an incredible team of individuals with the common goal of providing excellent service and quality.