Underestimating the cost to run your accommodation
Many owners underestimate the costs involved in renting out a holiday property. These include costs such as electricity, water, management costs and the hiring of specialists (gardeners, electricians, etc…)
Superfluous purchases
When furnishing, always think about your target group and their needs. In a city apartment you may not need a fully equipped professional kitchen and in a kid friendly accommodation you don’t need luxury equipment.
Interior and exterior do not match
Make sure your vacation home is not a design faux pas: modern architecture may clash with rustic furnishings. When furnishing and designing your property, keep in mind that it’s not just your tastes that counts. Get a second opinion if you’re not sure or even consult a professional.
Cheap or discarded furniture
Don’t skimp when it comes to furniture: the furnishings of your holiday home should be practical and functional. Make sure your furniture is of a minimum quality because it will look last longer and look nicer in pictures.
Small defects and damages not repaired
In every apartment there are a few little things that you need to pay attention to: A closet door that sometimes sticks, a loose doorknob, etc. As a holiday rental owner, you know all these little peculiarities of your apartment and automatically pay attention. However, your guests don’t know anything about these quirks and may not feel like paying attention to the little things while on holiday.
Instead, guests may quickly become annoyed when the closet door doesn’t open and may even think they have broken something. It is not advisable to cut corners here and instead you should always fix small defects as quickly as possible or give your guests clear instructions if they need to be careful about something.
Wrong pricing
Have you miscalculated and are earning too little to cover your running costs? On the flip side are your prices too high or too low, which might discourage potential guests from booking?
Mistakes in the rental price
If you price your accommodation too high or too low, guests will book with the competition. If the accommodation is too expensive, they will easily find a better offer. If the price is too low, they may think there is something wrong with your accommodation. Additionally, if you price too low, you’ll lose money.
Prices calculated wrong in high and low season
You should keep in mind that there are busy and less busy periods of the year. In less busy weeks and months, you should adjust your prices and possibly use discounts to attract long-term guests for the low season. The opposite is true in the high season. Often times, hosts charge too little in the high season.
Poor interactions
One of the biggest mistakes you can make when dealing with your guests is poor interactions. This can be in the form of booking requests that you answer too late, or even a lack of contact in case of an emergency.
Even if you have everything well prepared, unexpected situations can occur in which your guests need to contact you. They could have lost their key or something broke. Always make sure that your guests have a contact person for these emergency situations.
Neighbours not informed
Before you rent out your holiday home to guests for the first time, you should inform your neighbours. They can help your guests in case of emergency and inform you in case of excessive noise.
No clear instructions
When it comes to separating waste or complicated appliances, your guests need clear instructions. If they don’t have these instructions, they will either be afraid to use the appliance or do something wrong. It is advisable to prepare the necessary information in an easy-to-understand way and place these instructions next to the device.
No written agreements
You are not legally obligated to sign a rental agreement in Australia unless the booking is over 89 days. You are then required to sign a tenacy rental agreement. However, in case of problems, it best to be on the safe side and have guests sign a rental agreement.
You neglect the bookkeeping
You must pay taxes on your income from renting out holiday homes. To ensure that you do not forget anything, you should document all income and expenses.
Property and liability insurance
You think that all damages are covered by your household insurance? Think again: Many homeowner’s insurance policies explicitly exclude rental cases. When choosing your insurance, make sure that the rental of your holiday home is also covered.
Deposit
Do you think you can just keep the guest’s deposit if something is broken? Unfortunately, it’s not that simple. You need to be able to show receipts for the repairs, and sometimes even more documentation is required.
Overbooking / double occupancy
If you offer your holiday rental on multiple platforms double bookings can easily occur.
You must make sure as a holiday rental host that your booking calendars on all portals are always up to date. This also applies to booking systems on your own website. A channel manager can help you with this.