This is a difficult question to answer as there are so many variables, such as the location, type of rental, seasonality, and occupancy rate. However, a 2017 report from Vrbo found that the average vacation rental owner earned $3,000 in annual rental income.
Other studies have found that vacation rentals can generate higher returns than traditional investments, such as stocks or bonds. For example, a 2016 report from Colliers International found that vacation rentals provided a 12% return on investment, while the S&P 500 only yielded a 7% return during the same time period.
So, while there is no definitive answer to how much money vacation rentals make, it is clear that they can be a lucrative investment. If you are thinking of renting out your property, it is important to do your research and use professional vacation rental software to help you maximize earnings.
What is vacation rental software?
Vacation rental software is a technology solution that helps vacation rental owners and managers list their properties on multiple booking channels, manage reservations, and automate key tasks. This type of software is designed to save you time and help you earn more money from your vacation rental business.
There are many different types of vacation rental software on the market, so it’s important to choose one that meets your specific needs. For example, if you want to list your vacation rental on Airbnb, you will need a software solution that integrates with the Airbnb platform.
When choosing vacation rental software, be sure to consider the following features:
– Listing Management: The ability to list your vacation rental on multiple booking channels (e.g. Airbnb, HomeAway, VRBO, Booking.com) from one central platform.
– Reservation Management: The ability to manage reservations, guest communications, and calendar availability from one system.
– Automation: Time-saving features such as automatic payment processing, listing synchronization, and review management.
– Reporting and Analytics: Insightful data reports that help you understand your business performance and make informed decisions about pricing and marketing strategies.
– Guest Management: Features such as online check-in/check-out, keyless entry, and welcome packets that help you provide a seamless guest experience.
The vacation rental software you choose should be easy to use and offer 24/7 customer support in case you need assistance. Additionally, it should be affordable and offer a free trial so you can try it out before committing to a monthly subscription.
What is the higher end of earners from vacation rental businesses?
There is no definitive answer, as earnings can vary greatly depending on factors such as location, type of rental, seasonality, and occupancy rate. However, some estimates place the upper end of earnings at around $10,000 per month.
To reach this level of income, it is important to choose a high-traffic vacation destination and invest in quality vacation rental software that will help you optimize your listing and maximize bookings. Additionally, it is important to have a well-appointed rental property that offers amenities and features that appeal to guests.
If you are thinking of starting a vacation rental business, be sure to do your research and create a plan for success. With the right tools and strategies in place, you can earn a significant income from your vacation rental business.