The popularity of short-term rentals has grown exponentially with the rise of tourism in Portugal, making them a highly successful source of additional income. However, owning a short-term rental is not as simple as it may seem, and it's not enough to simply "open the door."
Additionally, the competition is increasing, so it’s crucial to stand out and make a lasting impression. To do this, you need to properly prepare your property, provide excellent service, create a welcoming environment, and ensure maximum comfort for your future guests. To help you get started, we’ve compiled 5 essential tips for better preparing your short-term rental.
1. OPT FOR A FAIR PRICE
Looking at the occupancy rate for Local Accommodation over the last two years in Portugal, which has been around 90 percent, the temptation is very great to start by asking a high price for your property. However, such a move can quickly lead to commercial failure.
In fact, prudence and market strategy recommend that, at least at first, you choose to ask for a fair and competitive price. This is because your Local Accommodation will be new to the market and will need to create a name for itself and a reputation with the competition.
By ensuring a certain and longer occupancy rate in the space, you're also ensuring a higher long-term profitability, which is ultimately your goal. To do this, do your homework. Before you start, study the market in your area and analyze and compare the prices of properties similar to yours. If the competition is very high - in other words, lots of other Local Accommodation in the same area, of roughly the same nature and with the same area - then try to stand out by offering the most affordable price. Especially if you don't have anything unique to offer (like a terrace or a backyard, for example).
The fact is that having a Local Accommodation with a low occupancy rate has several disadvantages, not only for you, but even for the classification of your property on the different online booking platforms where you are advertising it. In other words, there are several factors you need to take into consideration.
2. CHOOSE MINIMALIST DECOR
Many people choose to decorate their Local Accommodation as if they were decorating their own home. Remember that the people who will be using the property are above all your future clients. And they are the ones you want to please.
Therefore, opt for a minimalist and simple decor that can appeal to a wide range of people, from the younger to the older, from the more sophisticated to the more down-to-earth. We know that "less is more," but don't go overboard. Avoid leaving the property empty, as this can give it a barren and neglected appearance look.
You should also avoid using local accommodation as a kind of warehouse, where you store things you no longer want: used furniture, gifts or other obsolete items. Guests like to feel comfortable in the properties they rent and pay close attention to these details when booking.
However, always try to give Local Accommodation a personal touch. Nowadays, there are countless short-term rental properties with the same décor as IKEA. It really is an economical and stylish option, but do you want your home to be like a hundred others on the market?
3. USE GOOD PROMOTIONAL PHOTOS
We all know that image is crucial, especially when you're trying to sell something. The short-term rental industry is no different. Therefore, it’s very important to present your property well.
Online booking platforms feature hundreds of short-term rentals, and photos are one of the first things potential guests notice, right after the price and location. That’s why it's crucial to use high-quality, appealing images.
If possible, it's ideal to hire a professional photographer. They know the best angles to choose, the ideal lighting, and the right perspective for every corner of your property. They also know how to highlight its best features.
In addition, make sure to hide any visible electrical cords or cluttered areas in your short-term rental whenever possible. Guests don’t want to see photos with exposed outlets, messy rooms, or other unappealing details. Instead, highlight the beautiful view from your window, the stunning balcony, or the terrace where guests can enjoy a memorable sunset.
This is also a tip for when decorating your home. If you can’t take a good photo of your short-term rental, it’s likely because the decoration isn’t working, whether it’s the furniture arrangement, the style, or the type of furniture you've chosen.
4. CHOOSE A PERSONALIZED TITLE
Online booking platforms are a crucial ally for any short-term rental, but they are also highly competitive. If you search for other short-term rentals in the same area as yours, you'll likely find many other available listings.
Therefore, it's important to stand out from the rest. While price and photos are crucial, as we’ve already discussed, another key tip is the title you choose for your short-term rental. Many people opt for generic, purely descriptive titles that don’t stand out among the others.
A more personalized title captures the attention of potential guests, piques their curiosity, and can set your listing apart. Think about what makes your short-term rental unique and how it can spark the imagination and desires of future guests. What does your property have to offer?
5 - Ask for Help
It may seem obvious, but contrary to what the name suggests, common sense isn't always that common. Often, we insist on doing things we don’t fully understand, only making things worse instead of improving what’s already been done.
If you have a photographer friend, ask for their help with the photos of your property. If you know someone who owns a short-term rental, seek their advice. And most importantly, remember that property management companies specialized in short-term rentals are valuable allies in ensuring the commercial success of your property.
In addition to managing all the associated paperwork, these companies are responsible for handling your property on online booking platforms, taking care of maintenance and cleaning, managing guest relations, and offering consulting on the points mentioned earlier.
At first, a property management company for short-term rentals may seem like an additional and avoidable expense. However, at the end of the year, when you consider all the pros and cons, you'll quickly realize that it’s a valuable investment.
