Chosen well, vacation rental properties are an excellent investment. But many new investors are in such a rush to purchase, they make decisions that are less than careful. The biggest reason for poor decisions in the holiday rental market is inexperience. Failing to understand the area you wish to invest in can lead to decisions being made for all the wrong reasons. Likewise, letting emotion or your own personal preferences guide your decision can also be a bad idea.
Some properties look like a dream come true, but end up being impossible to market as a holiday rental. Other properties seem good on paper, only to be a money waster in reality. Before you snap up that beachfront villa or trendy apartment, it is a good idea to know what to avoid at all costs.
Vacation Rental Properties to Avoid
What vacation rental properties do you absolutely want to avoid at all costs?
1/ The ‘Fixer-Upper’
Everyone loves a good deal. If that good deal comes at the price of a fixer-upper that will cost you far more than you ever imagined in the long run, it is not worth the hassle. The vacation rental market is extremely competitive. The large majority of visitors expect a high level of quality when choosing accommodation. Outdated properties that need extensive renovation will be harder to promote, and will often have a lower income potential as well. Unless you can afford to completely upgrade the property, give this one a miss.
2/ The ‘Too Far Off the Beaten Track’ Property
That’s not to say that there is not some value in rentals that are a bit out of the prime tourist areas. A peaceful villa in the Constantia Winelands is quite different to a holiday property in a town or area so far off the beaten track that it will be impossible for guests to find. If you cannot afford the major areas, aim for an area that is close enough for guests to be able to easily get to attractions, restaurants, coffee shops and stores.
3/ The ‘Too Small to Move’ Property
Apartments are a popular choice for many leisure and business travellers. Compact 2 bedrooms, 1 bedrooms and even studios are appealing for those who want something simple and convenient. Even the most compact holiday apartments needs to at least have enough space for guests to be comfortable. Sleeping areas should be balanced with living and dining areas, with separate bathrooms. If you do find a space that is on the small side, keep furnishings as simple and minimal as possible to create more space.
4/ The ‘Safety Optional’ Property
Your guests need to feel safe at all times during their stay. Safety should never, ever be optional. If your property is in a complex that is less than secure, how will you be able to give your guests peace of mind? Over and beyond front doormen (or lack thereof) and a secure complex, you could increase a less than secure property’s safety by adding security gates, burglar bars and alarm systems. Freestanding properties will need to be fitted with the same features, as well as fence spikes, remote controlled gates and any other features that will provide additional security. Ideally however, it is best to choose a property that is already secure, in a safe part of town.
5/ The ‘Non Stop Noise’ Property
Technically, this is more about the area than the property itself. Although, it is always a good idea to be aware of factors such as noisy neighbours in a mixed use apartment complex or residential area. Vacation rental properties that are located in busy areas close to pubs, bars, clubs and restaurants are not always peaceful. The last thing any guest wants during their stay is excessive noise all through the night.
Once you have found the perfect space, make sure that you get the most out of your investment by partnering with an experienced holiday rental property manager. At Totalstay, we manage everything on your behalf, from marketing and promotion all the way through to calendar management, day to day maintenance and concierge services. Contact us today to find out more about our unique approach to managed vacation rental properties.