Vacation Homes - Frequently Asked Questions - Rentals2Remember

The Rentals2Remember.com FAQ was designed to answer most general questions about our service. If you do not see the answer to your question here, please contact us.

TIPS - New Owners Help Getting Started

Tips for the new vacation rental owners.

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Do you have tips for first-time vacation owners?

Renting a property as a vacation rental can sometimes be a daunting task for the first-time rental owner. There are many tasks involved to be a successful vacation homeowner. This FAQs page is an attempt to help you with some commonly asked questions from owners and our most popular tips. This is simply advice and is not to be binding or guaranteed in any way. We do our best to include all that we can and we encourage any suggestions that you might have! Two other very important people to help advise you would be your CPA and your attorney.

--- Last Updated: Feb 18, 2008

Will I make a profit?

You are the only one who can truly answer this question. However, we assume that you went into this knowing that thousands of new vacation property owners each do so profitably! Typically, the most important factor to your profitability of owning a home is how many weeks it can be rented each year. We help you with that by bringing thousands of potential renters to view your rental each week! Other factors that matter are: how much you spend to maintain it, how discriminating you are when renting, how effectively you advertise, and how popular a destination your rental is located in is. Additionally, many people rent their home(s) out not to make the huge profits, but simply to supplement their income and help to pay the bills for their vacation home. In this case, although you are losing money on your rental, you are gaining use of a vacation home for you and your family. Most importantly, the great majority of vacation properties gain equity from their property. It is certainly no guarantee, but many vacation properties substantially increase in value every few years! It is critical that you are thorough in planning your investment as much as possible in order to meet your individual goals.

--- Last Updated: Feb 18, 2008

How do I write a rental contract?

To protect all parties involved, a written rental agreement is critical. Contracts can be detailed or simple agreements. Rental agreements, in addition to giving you basic protection, will spell out the terms in such a way that there is no ambiguity between you and your renter in terms of what is expected. Since confusion can arise from verbal communication between you and your renter, they will appreciate this too! You can usually find example rental agreements via a search of the web or even at office supply stores. We advise you to contact a lawyer who has experience working with vacation rentals to get an agreement appropriate for your circumstances. Please be sure that any agreement you have contains the following: Basics of Rental/Owner information: contact information for the renter, dates and time of check-in and check-out. Finances: amount of rent, rental deposit, pet fees, additional guest fees, cleaning charges, applicable taxes, total amount due Cancellation Policy Damage and Security Deposit Policy Signatures of both parties.

--- Last Updated: Feb 18, 2008

How do I set my rental rates?

Pricing your vacation rental is critical to the success of your rental. If you are managing your property and handling all of your bookings, then be sure your prices are competitive with other property owners in your rental area. Remember, travel agents and management companies charge a premium for the services they provide: many are on-site or nearby, they are an established and usually reputable business, can provide immediate and local support, etc. Keep these things in mind when comparing with property management companies. Once you know what rate is competitive, adjust your rate based on the available amenities. If you increase your rate, make sure to let potential renters know what wonderful amenities you provide that justifies your rate. If youre just starting out, we recommend setting your rates a little lower to help get your property booked as early as possible. Pricing slightly below market can help fill your rentals quickly, which means increased revenue for you. If you find you are having no problem booking your rental, you can easily adjust your prices upward. Be sure that you post rates for the various bookings you allow for your property. Most rentals have weekly rates, some nightly, and many have monthly rates (especially if your property is in the south and you want to rent it out for months at a time to snowbirds). You can also offer a weekend rate, mid-week rate, or any rate that is appropriate to your location and rental. Longer stays should have a higher discount in comparison to a nightly rental rate. Of critical importance is knowing the peak and off-peak dates and set your prices accordingly. Also, remember any special weeks or events that could create high-demand. These can include holidays (Thanksgiving, Christmas, etc.) and local events (spring break, nearby sports events, etc.).

--- Last Updated: Feb 18, 2008

Do you have any other tips for success?

Key to the success of your rental is organization. Make sure you have procedures that you follow with a documented trail of any important aspect of your bookings. At a minimum, you should track: communications with renters (save all emails, take notes of phone calls), when a date is reserved, when you received a payment from a renter, what the payment was for, when you receive a contract, when you schedule a cleaning for the property, when you paid for cleaning service, when you returned the deposit, when you sent out keys, etc. When starting out, its extremely easy to forget to document something and then wonder a week later whether or not a particular step in your booking process was completed. This can lead to some awkward and potentially disastrous results! Additionally, it is important to maintain communication with your renters. Every time you receive a rental payment, send the renter a note (email, postcard, etc) letting them know that it was received, what is still due, and how to contact you with any questions. This will help the renter be more comfortable with the process and help them remember what they need to do next. When all payments are received, send a note to the renters with check-in/check-out procedures, directions, your contact information, who to contact during an emergency, etc. Lastly, if you havent heard from the renter in a while, dont assume all is well. Its possible that theyve misplaced your email address or phone number and are waiting for contact from you! Another reason why its important to touch base with them periodically.

--- Last Updated: Feb 18, 2008

Can I manage and maintain my rental remotely?

Many vacation home owners dont live near their property and must manage the rental remotely. In order to effectively manage your rental from a distance, youll need the service of others that are nearby. First and foremost, a good Caretaker, cleaning service, and gardener is a must. Having someone you can trust that can report to you the status of your rental, do an inventory and damage check, and make sure everything is in order is indispensable. In addition to a Caretaker, Housekeeper, and Gardener/Lawn Service, youll want to keep on your list a plumber, electrician, general handyman and pool maintenance service if applicable. Be sure to keep this list handy and available to you at all times!

--- Last Updated: Feb 18, 2008

When should I collect a deposit?

Make sure to collect a deposit upon reservation. Some homeowners collect a flat-fee deposit (for example, $200) while others will collect a percentage of the rental (for example, 50%). Collecting a deposit upon booking of your rental will help decrease your cancellations and, therefore, increase your bookings. Most renters expect to pay a deposit when they book the rental and then pay the rest of the monies due sometime before check-in (often 2-6 weeks before check-in). Remember that you are not a hotel and are not competing with hotels. Renters are actively seeking out your private home for their comfort and you can expect them to understand the rules are a little different than booking at a hotel.

--- Last Updated: Feb 18, 2008

How do I handle my taxes?

Additional record-keeping and paperwork come hand-in-hand with running your own business. Although one of the benefits to owning a vacation rental can be tax savings, you must maintain careful organization over all of your expenditures and income, as well as staying aware of all taxes you are responsible for. Make sure to keep an organized record of all your income and expenditures with regards to your rental. Consult your tax adviser on help in handling any federal, state, or local tourist taxes that you may be responsible for. For help on your federal taxes, the IRS provides a publication on rental property (publication 527) which is available at http://www.irs.gov. Be sure you are aware of your responsibility with regard to taxes!

--- Last Updated: Feb 18, 2008

How do I remotely handle renter access to my rental?

If you are remotely managing your rental, you have a few options to make sure your guests get access to the property. For those that have no way to have an in person check-in, you can either send the keys to the tenants or provide them with access to a key lock-box on the rental property. Never give renters access to your property until you have been fully paid for your rental. Key lock-boxes are available usually for $20-$30 from hardware stores such as The Home Depot. These can be securely mounted on the outside of your property and you can set a pass-code that will open the lock-box. Inside the lock-box is usually enough room for a single key to get access to the rental which will have additional keys on the inside. Your renters can then return the lock-box key to the lock-box and close the box. Make sure all of your rental keys are clearly marked on their own key ring. This will help renters to remember to return your key when they leave.

--- Last Updated: Feb 18, 2008

Do you have tips on responding to rental inquiries?

Here are a few tips on your inquiry responses: Be Quick The common phrase the early bird gets the worm is an important motto when responding to inquiries. The later you wait, the less of a chance you will have at getting the booking. Additionally, its good to show your potential renters that you are prompt at responding to any questions they might have. Be Friendly. A little human touch to your emails can help convey to the renter that they will enjoy renting from you. Additionally, if they have provided a phone number, you can call follow up with them by phone to let them know you want them to book with you! Answer Yes or No Even if your property is booked; a prompt No reply is appreciated by the renter. Also, youd be surprised how flexible renters can be if they like what they see with your rental. Providing them a list of alternate available dates could get them to book with you anyway!

--- Last Updated: Feb 18, 2008

Should I hold a reservation for a renter?

If you are not in high season or experiencing a high rental volume, we recommend holding a reservation for a potential renter just a short period of time (say 24 hours) to give them a chance to finalize their travel plans. This is particularly important for booking overseas travel when renters are trying to make sure they can get airline tickets, etc. Be firm about allowing only a short holding time for the reservation. Although you might have the best intentions, renters will sometimes use a lenient booking policy to their advantage. This can often result in late cancellations by the renter because of the lenient policy and lost rent to the owner. There is nothing worse than turning down a potential renter because youre holding dates for someone else that eventually cancels. Be sure to make this policy known up front. Renters typically understand this policy and are happy to oblige. Owners will enjoy the increased simplicity from not dealing with holds and the increased revenue from increased bookings.

--- Last Updated: Feb 18, 2008

How do I handle cancellations and refunds?

Make sure to have a specific cancellation policy that is spelled out in your rental agreement signed by the renter. Although cancellations are unfortunate, they are a fact of life when providing accommodations. Typical cancellation policies set a date after which deposits are non-refundable. This date is typically 2-6 weeks prior to check-in, with 1 month being the most common. Additionally, its common for owners to return the full rent (less a small fee) if the unit is able to be rented out to other individuals. Its also a good idea to recommend trip cancellation insurance to your renters in your rental agreement. This can be purchased inexpensively from their insurance agent or travel agent and covers their travel cost loss (airfare, car, accommodations) in the event they must cancel their trip due to a covered condition (illness, death, etc).

--- Last Updated: Feb 18, 2008