Creating Revenue Through Short Term Rentals

The short term rental market is EXPLODING here in Colorado, with new properties launching on multiple apps, every single day.

Many (many) people - homeowners and investors, alike - are hopping on this trend as a way to create a lucrative stream of revenue and increase their earning potential though clever real estate endeavors.

But, there is a LOT that goes into launching a profitable short term rental - and it takes more planning and strategy than you might realize.

In this article, I want to walk you through our process and provide some insight for setting up your very own short term rental.

FIRST THINGS FIRST…

Your short term rental property is a BUSINESS.

What does that mean, exactly?

Well, it’s more than a place for people to stay and for you to make money. Sure, that is the big picture, but what is the quality of guests and how much income can your property produce are the bigger questions.

To launch a successful business, you must first identify the purpose of your business and your ideal market.

In other words - what problems are you solving, what value are you providing, and what kind of people do you want to attract?

Now, this answer varies from property to property and will depend on the set up and purpose.

Let’s say you are renting out a room in your private home…your answer will most likely differ from an investor who is snapping up properties all over town; and their answer will also probably differ from the person who is launching only a single short term rental property.

The location of your place will also be a factor.

There are many considerations in this process, so you must be intentional about YOUR INTENTION.

YOU MUST HAVE A BUSINESS STRATEGY

Every business begins with a vision.

At Good Fruit Design, we are big believers in writing the vision and making it plain.

This boils down to crafting a strategy and knowing how to properly present it to your market.

Knowing what you want your short term rental property to produce and who you want to attract are the first steps to creating the strategy for your new business (ie, your short term rental).

Now the question begs - how do you attract the people you really want to attract?

This is where the design of the space is crucial.

It is crucial because, the design is a reflection of YOUR BRAND.

Your brand is a reflection of your vision.

Now, creating a brand around your short term rental might seem silly or unimportant to you, and if it does, you will probably be leaving money on the table.

When people are scrolling through hundreds of available properties on their preferred app, they are looking for a place that speaks to THEM.

They are searching for a place to create the experiences they have in mind. They are looking for interiors that are interesting and unique. They are looking for something memorable. Something different.

Once you align your vision with the expectations and desires of your ideal guest, you’re sure to stay booked and be making money.

And each market and side of town is different - so this is why you must know WHO you want to attract and what THEY are looking for within your specific area.

In addition to stand-out interiors, photos are important - not a place where you need to skimp on quality.

You have only seconds to capture someone’s attention and engage them - where they actually click on your property and check it out. If your design and photos are unremarkable, you miss the chance to book those “ideal” guests who are more than willing to pay top dollar to stay at your place - and leave you a raving review about their experience.

Reviews are the key to growing the desire of other people who are interested in booking their stay at your place and your credibility as a host.

Managing client care and communication is super important as well.

It’s about making an EMOTIONAL CONNECTION from the very first touch point all the way to checkout.

YOU MUST HAVE A TEAM

Going back to the first point of this being a business, brings us to this point:

You need support.

Sure, you could do it all on your own, but that’s not a very wise way to run a business.

Any entrepreneur knows you can only maintain that rhythm for so long until you need to hire out and delegate tasks to avoid burnout and things falling through the cracks.

Again, this is a BUSINESS and providing excellent customer service is a MUST.

You must have your short term rental well appointed, cleaned, and maintained on a constant basis.

If you are out of the city or even out of the state, this is even more vital.

If you are like any other busy individual, you probably are working a full time job already. On top of that, you may also have family responsibilities, social obligations, and personal interests that take up your time.

Running a business takes time, effort, and attention.

And with this particular business, that looks like creating the strategy, implementing the strategy, taking photos and writing up the “ad” for whichever app you are partnering with, communicating with potential guests, vetting and approving requests, taking care of any issues that come up (including in the middle of the night, on weekends, over holidays, during vacations, and in inclimate weather); rating each guest, stocking the property with the essentials you are providing, cleaning or “turning” the property after each guests’ stay and setting it back up for the next; it also includes maintenance of hot tubs, snow removal, and other items that come up during a guests’ stay.

Are you sweating yet?

It’s a LOT of work.

Fortunately, WE ARE HERE TO HELP.

GOOD FRUIT AS YOUR BUSINESS PARTNER

After designing and remodeling homes all over the Colorado Springs area for years, and designing multiple short term rental properties in Colorado Springs and in the Caribbean since 2018, we know a thing or two about the market and how our city is rapidly changing, ROI, who’s looking for what, and how to successfully create experiential atmospheres that bring enjoyment to whomever the environment was intended.

We understand and know how to make YOUR property stand out from the crowd - to THE RIGHT PEOPLE.

The great thing is, when you find your niche and know who your ideal guest is, your perfect person (or people) will look different than other peoples’ - so right from the start, you raise the margins of success for your business endeavor by focusing who is right for YOUR BUSINESS.

It’s all about INTENTIONALITY and IMPLEMENTATION.

And when you work with Good Fruit Design, intentional design and strategy go hand in hand.

We take the guesswork out of the process and help you not only define your strategy, but we offer a vast array of services and share our connections with service providers to help you on your journey to success.

Additional services like curating a presentation package to promote your property online and property management and maintenance are all available through Good Fruit Design.

If you are interested in launching a lucrative short term rental but now realize it’s a lot more than you want to take on yourself, give us a call and let’s talk about how we can help you get your new business of the ground and making money in as little as 30 days.