Making a real estate investment is a business that, well managed, can give you a great return, since this is an industry that is currently growing.
Of course, for your tourist accommodation to be truly profitable you must learn to manage the tasks and responsibilities that this implies, which goes beyond collecting rent.
Don't worry, here we provide you with our 7 keys to success to achieve tourist apartment management that is efficient and profitable in the long term.
What is tourist accommodation management?
Basically, it consists of correctly managing a property for tourist use and everything that this entails, from managing the corresponding taxes and providing good service to tenants to guaranteeing the optimal functioning of the property.
To do this efficiently, it is essential that you have knowledge of the real estate sector, both to increase the reserves of your property and to maintain the legality of your tourist rental, because yes, this business involves essential legal procedures.
7 keys to efficient tourist apartment management
The efficient management of a tourist apartment is essential to increase your income, obtaining the maximum possible return on your real estate investment. To achieve this, take into consideration the following keys to success if you are managing your property:
Get to know the real estate market
The tourist rental in Paris does not work just like that of Spain, to give you an example. This is completely normal, because the real estate market adapts to the behavior of the country, supply, demand, regulations, trends, etc.
That is why it is important that you know and understand the real estate market that surrounds your property for tourist use, which means knowing the trends, the demand for tourist rentals, the rental prices of your competitors, potential guests and more.
Keep up to date with regulations
To protect your investment you must ensure that you have the licenses required to operate a home for tourist use, as well as comply with current regulations.
And there are laws that are continually updated, so if you want to avoid fines and sanctions, you must stay up to date with the current regulations that govern where your property is, because in Spain each autonomous community has its own regulations.
Guarantee the maintenance of the property
The better your property performs, the better the rental price you can set, the greater the reputation and the higher the return on your investment.
Well, travelers highly value when a property is comfortable and pleasing to the eye, when they have access to the promised services and when the property is clean and organized. This is reflected in their reviews, which favors the increase in reservations.
That is why it is vital that you maintain a regular cleaning and maintenance schedule, which involves cleaning each space of the property, periodically changing the household linens and carrying out inspections to guarantee the proper overall functioning of the property.
Monitor compliance with the contract
The correct one rental contract management. Your peace of mind, the integrity of the property and timely payment of the rent depend on it, which is why it is essential that you obtain legal advice in the preparation of a clear contract that takes care of your interests and is fair to the tenant.
Both you and the guest acquire legal responsibilities after signing a rental contract, so it is preferable to discuss it in depth to avoid doubts.
Do good marketing
If you want to receive continuous income from the rental of tourist accommodation, you must constantly promote it to attract guests to your property.
For this, you can use vacation rental platforms, which are the most used by travelers when they are looking for seasonal accommodation, such as Airbnb, for example.
You can also use social networks and, in fact, create a website to show your property for tourist use, always maintaining an active presence on these platforms.
And traditional advertising can also give you results, such as promoting your property in local media and/or in tourism industry publications.
Set competitive prices
The rental price of tourist accommodation influences the level of income you will receive; However, it is not about setting a random price, but rather considering some variables.
That is, you must take into account the competitors' rates, analyze the market to know the behavior of prices in each season (holidays, especially), take into account the location of the property and, of course, the amenities that it offers.
Remember that vacation accommodations are taxed in the Treasury, depending on the income they receive, this must also be considered when setting the rental price.
Provide good customer service
As part of your marketing strategy, customer service is essential to avoid problems with guests due to misunderstandings, in addition to getting good reviews.
That is why from the beginning of the contact you must provide clear information, so that there is no room for confusion, giving the tenant the freedom to ask all their questions.
It is also important that you maintain fluid communication with guests during their stay, resolving any contingency that could affect their experience.
Vacation rental management: do it yourself or delegate it?
Actually, if you have time, patience and dedication you can learn to manage a tourist apartment correctly, mainly taking into account the aforementioned.
If you only want to receive the rent money, without worrying about anything else, it is best to choose to delegate these tasks to tourist apartment management companies, who will be in charge of assuming the risks and responsibilities of the administration of your apartment .
Of course, not all tourist accommodation management companies offer the same service coverage. There will be some that are only in charge of specific tasks, while others will take on all the tasks involved in keeping your tourist property up to date
With UpperKey , for example, you will enjoy the advantages of having a real estate agent, saving you worries regarding the management of your property , since we take care of appraising your property, suggesting the most appropriate rental and managing it in its entirety.
Other questions about the management of properties for tourist use
In case you have doubts about delegating the tourist rental management service, here are other answers that are worth knowing:
How much do you earn with a tourist apartment?
The profitability of a tourist apartment depends on several factors, such as its location; However, it is estimated that you can receive a return between 5% to 10% on your investment.
How much do you charge for the management of a tourist apartment?
It also depends on several factors, mainly the type of property you own. For this reason, vacation rental managers carry out an in-depth analysis of your property and expectations in order to provide you with a detailed and personalized quote.
Who pays for real estate management?
The owner of the property is established in the Spanish Housing Law.