Atlas by AvantStay®

They say don’t judge a book by its cover, but that couldn’t be less true when it comes to a vacation rental home. Your vacation rental’s interior design (and how it’s displayed in photos across listing sites) is one of the first things potential guests notice when deciding to book a stay. 

Luckily, when you partner with AvantStay you get full access to our award-winning vacation rental interior design and procurement services that instantly add value to your home while increasing occupancy. Our talented interior designers build a free, custom design strategy for your home that inspires both you and our guests to feel their most comfortable—creating lasting memories while saving you thousands. Keep reading to find out why vacation rental interior design is critical to your success and how AvantStay can increase your home’s equity, drive more positive reviews, and maximize your revenue.

The benefits of investing in vacation rental interior design  

Only AvantStay homeowners have access to our award-winning professional Design and Photography teams who elevate homes in under nine days, instantly increasing your home’s equity and maximizing your ROI. We help you procure high-quality, durable furniture and upscale amenities. We also take care of the professional photoshoot—for free! 

Attract more guests

Our brand is defined and recognized by a consistent aesthetic across our homes. This includes new furnishings, stylish decor, and top-of-the-line amenities. Professionally designed properties attract guests who appreciate and respect the elements that make your home special. After all, that’s why they booked it!  

Earn higher ratings 

Homes with branded, thoughtfully designed interiors are directly linked to higher ratings and referrals from guests. An appealing and comfortable home where guests can gather and entertain has a proven positive effect on the guest experience. Homes that look their best make guests feel their best.

Increase your revenue 

When AvantStay refurbishes your home, you maximize your property’s value and increase profit by up to 20-30%. You’ll notice a surge in bookings as guests prefer to stay at properties with professionally designed interiors and experiential amenities for the whole group to enjoy. An increase in revenue is the ultimate goal, right?

Save time and money

Renovating and designing a home is a pricey and time-consuming project to take on alone. When we do the heavy lifting to refurbish your property with our discounted rates, you’ll save time and money that would have been spent doing it yourself or with an independent designer.

How does AvantStay’s vacation rental interior design program work?

Our in-house Design team helps homeowners redesign and curate experiential spaces for gathering. When you partner with AvantStay, we provide general design upgrades ranging from light renovations (reflooring, repainting, switching out light fixtures, maximizing space by adding bedrooms, etc.) to completely refurbishing the home to fit within our brand standards, aesthetically and functionally.

We help you procure high-quality, durable furniture, equipment, and amenities to elevate the guest experience and drive premium daily rates. We pass along our discounted rates to you so you capture those savings, and coordinate delivery and installation on your behalf so you don’t have to lift a finger!

The turnaround period from when we start working on a home’s design (including purchasing, installation, and photography) to going live on our website takes an average of 30 to 45 days. To begin, we do a virtual scan and walkthrough of your home using Matterport. This shows our interior designers everything they need to fully design and transform a space, including detailed floor plans.

Once we have the 3D scan, we begin creating a design deck that shows recommendations in line with your budget and potential increased revenue projections. We recommend changes that will have the most impact on driving guest satisfaction, higher occupancy, and ultimately revenue performance. Once you agree to our recommendations, we procure the items with our suppliers at 20-60% discounts and coordinate the necessary delivery and installation.

“Our goal for the design transformation is to appeal to travelers looking for a quick getaway, wanting to explore a new town, and experience the local flare,” says Candace Rein, AvantStay’s Associate Creative Director of Standards and Innovation. “Our design is elevated, thoughtful, and aspirational. We want our guests to feel inspired by the space.”  

Our stylists then incorporate unique elements to your home inspired by local surroundings. They add indoor and outdoor games to improve the experiential elements of the home as well as make it feel welcoming and fun. 

“What differentiates us from our competitors is that while all of our homes are different, we consistently approach design with group experiences in mind,” says Candace. “We look at these single-family STRs with a hotel approach by utilizing every square foot with some kind of experiential aspect. Whether it’s a game table, a beautifully curated gallery wall, or providing extra seating by extending the dining table double the standard size, it’s about highlighting the home’s amenities and designing around that.”

Next, our in-house Photography team schedules a professional photoshoot where our stylists and photographers collaborate to ensure our detailed guidelines are met. We use high-end professional photography equipment and drone footage to showcase every aspect of your home. This illustrates the full potential of the stay to our guests while highlighting your home’s key revenue drivers.

Finally, our in-house Listings and Distribution team manages your inventory across more than 60 leading distribution platforms known as Online Travel Agencies (OTAs), specifically curated for your home. This leads to maximized views of your home, more bookings, better reviews, and higher revenue.

Unlock AvantStay’s award-winning interior design services

Design and capital improvements increase your home’s equity, maximizing your ROI. Let us do the heavy lifting and work with you to create the perfect vacation rental interior design plan for your home. 

If you’re interested in learning more about AvantStay’s vacation rental management and interior design services, our team of experts is ready to help. Get started today!

Managing a vacation rental located in a different city than where you live may seem like a daunting task, but it’s entirely doable—and profitable! Many vacation rental owners purchase short-term rental properties out of state, from favorite vacation destinations to popular markets with high revenue potential. Technology and tools in the STR industry are always evolving, making it the new normal to manage vacation rentals remotely. With the right prep, tools, and team, vacation rental owners can create an exceptional guest experience, drive positive reviews, and maximize income. Whether you’re on the opposite coast or down the street, here are our top tips to manage vacation rentals from anywhere you choose.  

Communicate with your guests

Communication is key to managing your vacation rental remotely. Guests should feel welcomed and know that they can easily get in touch with you if they have any questions or concerns, even if you aren’t in the area. Create templates for automated messages to send guests before, during, and after their stay so you can stay on top of communication and show your guests that you care. 

Also, make your guests feel at home and get ahead of potential questions by providing a vacation rental welcome book, physical or digital. Write out everything guests need to know about your home, including amenities with how-to instructions, local contact information for maintenance and emergency issues, and things to do and places to explore in the area. 

Set up contactless check-in and check-out

Create a great first impression and limit any departure stress by automating check-in and check-out procedures. With contactless check-in, you won’t need to physically greet your guests upon arrival. Not only is this great for remote hosts, but guests won’t have to worry about arriving later than planned.

Use a lockbox or smart lock for the ultimate self check-in experience. With smart locks, you can create custom codes for guests that are only valid during their stay, get notified when they arrive, and issue designated codes for your housekeeping team. 

Implement smart home technology 

Keep your vacation rental home safe and running efficiently with smart home technology. Besides smart locks, install home automation systems like smart thermostats and smart lights so you can remotely monitor and control the temperature and lighting when guests are gone, cutting down on your electricity bill. 

Secure your home and reduce any risks of upsetting your neighbors with noise monitoring and device counting technology. At AvantStay, every home is equipped with our complimentary smart technology package which includes noise monitors, video doorbells, occupancy detectors, and keyless entry locks. Our monitoring and prevention technology is integrated into our operational dashboard, giving our Guest Experience team 24/7 real-time insights at each property.

Create reliable housekeeping and local vendor teams 

From housekeeping to landscaping and maintenance, create a solid team of local contractors that you can trust to keep your vacation rental in pristine condition. Make a list of the best housekeepers, repairmen, plumbers, electricians, and landscapers that you can call when needed. Build a strong relationship with these folks and pay and tip them well, they’ll be your right hand in managing your vacation rental remotely. 

To ensure that every AvantStay property is meticulously cared for, we employ a highly trained staff with the highest standards of professionalism and care. At your home, our local operations teams manage maintenance, upkeep, and surveillance, while our housekeeping team professionally cleans after every stay in adherence with our premium cleaning standards. We also have pre-negotiated rates with top local vendors that we know and trust, saving you money on maintenance costs.

Keep your listing up to date

Hire a photographer to take high-resolution photos of your vacation rental that accurately reflect the space, amenities, and what guests can expect when they walk into your home. Make sure you update these photos and descriptions after you make any changes to your property so guests don’t leave negative reviews about an inaccurate listing. 

With AvantStay, our Design and Photography teams develop a marketing and listing plan that best highlights the experiences and amenities for our guests. We stage, style, and photograph your home to showcase the property’s best characteristics across top online travel agencies (OTAs). 

Stay updated on local short-term rental laws 

Every state, county, and city has its own short-term rental laws. These are often changing, so make sure that you’re fully updated and understand the current rules and regulations in place for your market. Also, check with your local city or county government about taxes. You will likely need a general business license or short-term rental permit. These ensure your vacation rental is compliant with zoning restrictions and meet the local health and safety requirements. 

Unlike other vacation rental managers, AvantStay has fully dedicated and experienced accounting, permitting, and tax professionals to provide peace of mind and cover all of your compliance needs. Our Policy and Risk team handles all administrative duties related to initial permitting and renewals of short-term rental permits, home inspections, occupancy taxes, and HOA and government relations. 

Hire a vacation rental manager 

While it’s possible, and common, to manage vacation rentals remotely, consider partnering with a vacation rental manager who can do all of the above—and more—on your behalf. AvantStay offers end-to-end, flexible management programs to give you peace of mind. From financials to design to maintenance, we take care of your home as if it were our own. Our proprietary tech suite powers bookings, operationalizes in-field management, and activates an elevated guest experience. We take care of all the work to maximize your home’s income so you can sit back and relax—it’s that simple.

If you have questions, our team is here to help. Why not partner with the best vacation rental management company to unlock your property’s full value? Get started with our vacation rental management experts today!

Successfully managing a vacation rental requires a lot of preparation. From complying with local regulatory laws to knowing what to stock for your guests, there’s a lot to think about. Most short-term rental hosts start their business without any training or experience. There’s no guidebook to running a short-term rental—you learn by doing. But wouldn’t it be great to have a checklist of all the things you need to be a great host? We thought so too! In this article, you’ll find a full vacation rental inventory checklist complete with all the supplies you’ll need to wow your guests, leaving them happy and eager to write a positive review.

What to stock in your vacation rental kitchen 

One of the best perks of staying in a short-term rental instead of a hotel is having the ability to cook your own meals. A kitchen with no supplies and gadgets isn’t of much use. Here’s a list of items to stock in your vacation rental kitchen so guests can create their own family meals and lasting memories. 

Appliances 

• Toaster
• Coffee maker
• Tea kettle
• Blender
• Brita water pitcher
• Ice trays (2)

Cookware and bakeware

• Pots and pans set 
• Non-stick skillet
• Cutting boards
• Baking sheets (2)
• Glass baking dishes (2)
• Mixing bowls
• Oven mitts
• Hot pads

Dinnerware and glasses

• Dinner plates (2x occupancy)
• Salad plates (2x occupancy)
• Bowls (2x occupancy)
• Mugs (2x occupancy)
• Water glasses (occupancy +4)
• Stemless wine glasses (occupancy +2)

Flatware and utensils

• Forks (2x occupancy)
• Spoons (2x occupancy)
• Knives (2x occupancy)
• Chef’s knives
• Scissors
• Wooden spoons
• Cooking utensils

Serveware 

• Serving platters (4)
• Salad bowl
• Serving bowls (2)
• Serving pitcher
• Cheese board

Pantry

• Ground coffee
• Tea
• Sugar
• Stevia sweetener
• Salt and pepper
• Olive oil
• Seasonings

Cleaning and storage

• Paper towels
• Trash bin
• Trash bags
• Recycling bin
• Dishwashing soap
• Soap dispenser
• All-purpose cleaner
• Kitchen towels (8)
• Linen napkins (12)
• Glass Tupperware set (6)
• Knife block
• Utensil holder
• Cutlery organizer
• Paper towel holder
• Sponge holder

What to stock in your vacation rental bedroom 

Guests view their time away from home as a chance to relax and recharge from their everyday routine. This includes a good night’s sleep! Make sure you make the beds with high-quality sheets, warm blankets, and comfortable pillows. Sure, supplying your guests with lower-quality bedding might be cost-effective. However, having high-quality bedding provides your guests with a more comfortable stay and could be the difference between a bad and good review.

• Duvet cover (2 per bed size)
• Duvet insert (1 per bed size)
• Mattress pad (1 per bed size)
• Mattress (1 per bed size)
• Pillows
• Sheet set (2x per bed size)
• Pillowcases (4x per bed size)
• Pack and Play sheet set
• Luggage rack (1 per bedroom)
• Extra throw blankets

What to stock in your vacation rental bathroom

A tidy and clean bathroom filled with high-quality products provides guests with a spa-like experience. This starts with the basics, from appliances to luxury travel-sized toiletries. When it comes to bath towels, a common rule of thumb is to leave two per guest. You might also consider having a closet with a few extra towels stocked.

Bathroom basics

• Handsoap
• Hairdryer (2x per home)
• Plunger and brush caddy
• Shower setup
  • Curtain and liner
  • Rings
  • Rod
• Toilet paper
• Tissues
• Wastebasket and extra bags
• Floor mat 

Towels

• Bath (2x occupancy)
• Hand (2x occupancy)
• Washcloths (2x occupancy)

Bath products

• Shower gel
• Shampoo
• Conditioner

Housekeeping supplies for your vacation rental

Stock up on these basic organization and cleaning supplies so guests can unpack, unwind, and keep their space tidy. 

Cleaning supplies

• Disinfectant
• All-purpose cleaner
• Vacuum
• Spray mop
• Floor cleaner
• Broom and dustpan
• Paper towels
• Sponges
• Dishwasher detergent
• Dish soap
• Bleach

Laundry 

• Laundry detergent
• Clothing hangers (100 per home)
• Iron and ironing board
• Drying rack 

Power

• Light bulbs
• Power strips
• Extension cords

Trash

• Large trash bags
• Small trash bags
• Kitchen trash bags

What to provide for your vacation rental outdoor space

Outdoor space is a top amenity for guests. You want to ensure guests have everything they need so the outdoor space is as functional and comfortable as being inside. If your vacation rental has a yard, patio, deck, or porch, consider supplying these items to improve your guests’ outdoor experience.

• Tables and chairs
• Grill
• Grilling tools and brush
• Lighter
• Fire pit 
• Marshmallow sticks
• Plastic tumblers
• Hammock
• Yard games 
• Pool towels

We believe that maintaining your vacation rental should be as easy as checking a few boxes. Our vacation rental inventory checklist is a great place to start, but if you’d rather enjoy more positive reviews, increased occupancy, and maximized revenue without having to do a thing, partner with AvantStay for end-to-end vacation rental management. 

We offer flexible management programs to give you peace of mind. From financials to design to maintenance, we take care of your home as if it were our own. Our proprietary tech suite powers bookings, operationalizes in-field management, and activates an elevated guest experience. We take care of all the work to maximize your home’s income so you can sit back and reap the rewards—it’s that simple. Get started with our vacation rental management experts today!

Challenge: Help new short-term rental owners prepare their recently purchased condo for ski season and get off to a profitable start. 

Background

Mike and his wife have been visiting Vail every winter for the past 10 years. The two are avid skiers and love the coziness of the Bavarian-inspired village. In 2021, they finally made the decision to purchase a condo to use during ski season and occasionally during the summer months. Since the two only planned on using their condo for several weeks out of the year, they decided they wanted to operate it as a short-term rental to generate some additional income.  

By the time they purchased their condo in November 2021, they were approaching Vail’s opening weekend and felt overwhelmed as they raced to prepare the condo for ski season. Because Mike and his wife live out of state, they knew they wanted a partner to help them manage their vacation home. When their real estate agent introduced them to AvantStay, they were eager to get started. 

Solution

After Mike and his wife spoke with an AvantStay representative, they had a better understanding of our vacation rental management program and the entire onboarding process. Any feelings of stress or uncertainty were relieved once they learned that AvantStay would immediately take care of everything from policy and compliance to interior design, furnishing, and marketing.

To start, AvantStay’s interior designers purchased new furnishings and styled the condo with a comfortable and upscale nod to the mountains that surrounded it. Following the design upgrades, AvantStay’s in-house photography team staged and professionally photographed the space to optimize the property listing. Everything was quickly posted on AvantStay’s website, as well as other top OTAs including Airbnb and VRBO. 

With the new eye-catching listing and the AvantStay team ready to handle bookings, create an exceptional guest experience, and more, the Vail condo was set for Colorado’s ski season in under one month!

Property performance

Time with AvantStay: 6 months 
Occupancy rate: 65%
Weekend occupancy rate: 75%

Results

After just one month of going live with AvantStay, Mike’s condo received 18 bookings and reached an occupancy rate of 65%, higher than Vail’s annual average of 60%. 

“We were impressed right off the bat after we spoke with our AvantStay rep who explained AvantStay’s vacation rental management program and was consistently available for follow-up questions, even over weekends,” said Mike. 

“Once the onboarding team took charge, it was an effortless process from an owner standpoint. They kept us informed every step of the way, got our condo fully furnished, and dealt with any inspection issues—all within a few weeks! We are so impressed with AvantStay and know that our second home will be well cared for under their management.” 

Interested in learning more about how AvantStay can boost your occupancy rate, increase your short-term rental income, and maximize your ROI? Our team of vacation rental management experts is here to help. Get started today!

Looking to start a vacation rental business, but find yourself wondering “are short-term rentals profitable?” You’re in luck! While variables like the upfront costs of securing a vacation rental property, location, seasonality, and maintenance all impact your profitability, you can see great returns on a short-term rental. 2021 saw unprecedented growth for the US short-term rental industry, with vacation rentals earning an average of 39% more annually than they were before the pandemic. The revenue potential for vacation rentals is still on the rise. So, let’s talk about how to make money on a vacation rental property and why you should partner with a vacation rental manager like AvantStay.

Starting a vacation rental business 

Understanding your potential earnings is a key first step before investing in vacation rentals. Tools like AirDNA allow you to calculate average daily rates, occupancy rates and projected revenue. Once you have an idea of what you could make from your vacation rental, subtract expenses like down payments, mortgage payments, interest, insurance, maintenance, management fees, and taxes for your estimated net income. It goes without saying that in order to increase your ROI, you’ll need to maximize your gross income. But how do you do that efficiently? Let’s take a look at how to make money (and maximize your revenue) on a vacation rental property with these seven tips. 

1. Research the local market

Location can make or break the success of your vacation rental. Choose a market that’s not only close to popular destinations like national parks, beach communities, or ski resorts, but one that draws visitors year-round.

Many vacation destinations have low and high seasons. However, there are markets, like Lake Tahoe and Telluride, that generate steady income throughout the year with strong winter and summer seasons. Also, consider the proximity to major airports to attract even more guests. 

Keep in mind that every market has different short-term rental rules and regulations. A vacation rental management company can keep you safe from hefty fines and legal repercussions. AvantStay’s in-house Policy and Risk team handle all administrative duties related to initial permitting and renewals of short-term rental permits, home inspections, occupancy taxes, and HOA and government relations, so owners that work with us have peace of mind.

2. Decorate and furnish

Invest in your home and increase returns by taking the time to decorate and furnish the space. Select quality furniture that can withstand the usual wear and tear of guest use and invest in popular amenities like hot tubs, pools, and game rooms to get more bookings and positive reviews. Is your short-term rental in a desert climate like Scottsdale? Then a pool and a backyard space where guests can play games and relax is a must. 

On the interior, consider allocating a small area in your home for a remote workspace to attract flex workers who will likely book longer stays if they can work comfortably in your vacation rental home. 

When you partner with AvantStay, you get access to our award-winning Interior Design team and services. Even more, we’ll pay to furnish your home–free of charge! Our designers review every home added to our portfolio and create memorable and inspiring designs that transform spaces and increase value. We purchase top-notch furniture so you don’t have to spend a dime, and arrange bedrooms and common spaces to maximize occupancy.

3. Price for year-round success

Strategically pricing your short-term rental for the market and seasonal trends is one of the trickiest parts of running a vacation rental. Researching your local market is important so you can accurately (and competitively) charge for things like proximity to local attractions, amenities, and number of bedrooms. 

AvantStay’s pricing strategy is designed to optimize for total revenue. We balance capturing the maximum amount a guest is willing to pay per night with maximizing the total nights booked.

Our dynamic pricing model segments each year into 75+ pricing seasons that capture optimal revenue based on occupancy, day of the week, fluctuations in weather, travel patterns, holidays, and local events. We combine our technology with the power of our in-house Revenue Management team that consistently reviews pricing for every home to adjust for real-time changes in demand, maximizing your vacation rental income. 

4. Optimize and advertise 

What good is a vacation rental property that no one knows about? Take high-resolution photos of your home to showcase everything it has to offer. That way, guests can imagine themselves relaxing in your space. Use these photos to advertise your short-term rental across online travel agencies (OTAs), and all the amenities and perks available for guests. Do you allow pets? Do you have a home theater? These are things that should be included in your listing to drive more bookings and increase your revenue. 

With AvantStay, our powerful distribution capabilities are included in your management agreement. 40% of bookings come directly through the AvantStay website, but we also optimize each listing across 60+ distribution channels including Airbnb, VRBO, TripAdvisor, Expedia, Booking.com, and Homes & Villas by Marriott International. 

In addition, our Design and Photography teams develop a marketing and listing strategy that best highlights the experiences and amenities for our guests. We stage, style, and photograph your home to display your property’s best characteristics across listings. 

5. Impress your guests 

Going above and beyond to care for your guests is one of the easiest ways you can generate more revenue from your vacation rental. Happy guests leave positive reviews, which drives more bookings, repeat visitors, and more income for you. Providing thoughtful items like a welcome package and vacation rental guest book are little details that won’t go unnoticed. However, non-negotiable services like guest communication, leaving the home well-stocked, and CDC-grade cleaning are all key to driving five-star ratings. 

AvantStay guests have access to 24/7 live support via SMS, email, or phone, and we troubleshoot every issue to ensure they are well-cared for so homeowners can sit back and relax without any interruptions. By resolving 90% of guest issues on the first call, we receive higher ratings and better guest satisfaction. 

We also take care of stocking the home with guest-ready supplies and provide personalized, thoughtful welcome packages ahead of every stay. Guests can also take advantage of our in-app upgrades and experiences to book a private chef or in-home massages, request fridge stocking, schedule mid-stay cleans, and more. 

6. Take care of your home 

While you want to make the most out of your vacation rental, don’t exploit your home. Care for your property so your short-term rental can go the distance! Regular maintenance, upkeep, and making sure guests are also respecting your home is an important part of running a successful and fruitful vacation rental. 

A good vacation rental manager will prioritize all of these things to maximize your profit while keeping your home in excellent condition. AvantStay has teams dedicated to field operations that manage utilities, services, maintenance, and housekeeping on our owners’ behalf. In addition, we provide and install security devices such as smart locks, noise sensors, and doorbell cameras, compliments of AvantStay. A clean and cared-for home will generate positive reviews, more bookings, and more revenue. 

7. Hire a vacation rental management company 

Ultimately, managing a vacation rental takes a lot of work. If you’d rather enjoy your passive income and see great ROI without the operational headache, hire a vacation rental management company. 

AvantStay offers end-to-end, flexible management programs to give you peace of mind. From financials to design to maintenance, we take care of your home as if it were our own. Our proprietary tech suite powers bookings, operationalizes in-field management, and activates an elevated guest experience. We take care of all the work to maximize your home’s income so you can sit back and reap the rewards—it’s that simple.

If you’re interested in how to make money on a vacation rental property with AvantStay, our team is ready to help. Get started with our vacation rental management experts today!

Investing in real estate is an excellent way to generate passive income, build equity, and diversify your investment portfolio. According to a recent Gallup poll, 45% of Americans believe that real estate is the best long-term investment compared to stocks (24%), gold (15%), savings accounts (9%), and bonds (4%). Purchasing an investment property and operating it as a short-term rental can give you an extra cash flow each month. If you’re looking to tap into this lucrative asset class but don’t know where to start, no worries. We’ll cover all the basics on how to finance an investment property, loan requirements, and how a vacation rental management company can help maximize your ROI. Let’s get started. 

What is an investment property? 

An investment property is real estate purchased to generate income, receive tax benefits, or profit from appreciation. Investment properties are not your primary residence and can be purchased individually or by a pair or group of investors. These properties are often purchased to “flip” by renovating and reselling for profit. Investment properties can also be rented out (on a long or short-term basis) to create a passive income stream.

Types of investment property loans

There are many different types of investment property loans. In order to choose the right loan for you and your investment goals, it’s crucial to understand all of your options and their requirements before contacting a mortgage lender. 

In addition, keep in mind that down payments and interest rates are higher for investment properties compared to primary and second home mortgages. The reason being is that lenders view investment properties as more risky and know that if things don’t work out, the borrower will walk away from the investment and keep their primary residence. 

Now, let’s break down four popular loans for investment properties so you can choose the best option and maximize your return on investment. 

Conventional bank loans

A conventional bank loan is one of the most common loans among real estate investors. These loans are offered by traditional lenders like banks, credit unions, and mortgage brokers. Conventional mortgages follow the requirements set by Fannie Mae and Freddie Mac and aren’t backed by the federal government. 

Conventional loans for investment properties can require up to 30% for a down payment. Mortgage lenders also consider the borrower’s credit score, income, assets, and may require up to six months of cash reserves for eligibility. 

However, these requirements differ from state to state and among mortgage lenders. For that reason, be sure to research the conventional mortgage qualifications for investment properties in your local market.

Hard money loans 

A hard money loan, or a fix-and-flip loan, is a great option for investors who want to renovate a property and resell it for profit in a short amount of time. This is a short-term loan that is often quicker and easier to obtain than a conventional loan. Mortgage lenders will mainly consider the property’s value and potential profitability, along with the borrower’s income and credit score. 

Interest rates for hard money loans are greater than conventional loans, and can be as high as 18%. This is because the borrower is typically asking for more than the property is worth to account for repair costs and will likely pay off the loan in a short period of time, usually 12 to 18 months.

Private money loans 

Private money loans are offered by individuals, not traditional lenders. These lenders can be friends, family members, fellow real estate investors, or anyone in your network who is able and willing to loan you money for your investment property. Requirements for private money loans vary based on your relationship to the lender, but usually have lower interest rates and negotiable terms. Private money loans will usually have a contract that allows the lender to foreclose on the investment property if the borrower doesn’t make loan payments in the given timeframe. 

Home equity 

You can use home equity to finance an investment property with a home equity loan, home equity line of credit (HELOC), or cash-out refinance. These entail using money from an asset you already own (your primary residence) to help secure your investment property. The downside to using home equity is that your primary residence is collateral if you can’t make loan payments.

A home equity loan is a lump sum from your mortgage lender that is paid back in monthly installments. Interest rates and monthly payments are fixed. Many mortgage lenders allow you to borrow up to 85% of your home’s equity. 

With a HELOC, you’re using a line of credit secured by your home equity that you can borrow from and repay in monthly payments, similar to a credit card. HELOCs have a set amount you can borrow each time as needed, as long as you continue to pay it back. HELOCs have variable interest rates which can increase if the prime rate changes. 

A cash-out refinance allows you to take out a new mortgage greater than the original amount. The difference between the original mortgage and the new one is paid to you in cash, which you can then use to finance an investment property. 

Maximize your ROI with AvantStay 

Investment properties provide a great return on investment and passive income for buyers. Now that you have a basic understanding of how to finance an investment property, plan on maximizing your ROI by operating the home as a short-term rental. 

If you’re looking to secure an investment property or already have a home that you’d like to run as a short-term rental, consider working with a vacation rental management company. When you partner with AvantStay, we’ll manage your investment to give you peace of mind and maximize your income. We take care of revenue management, marketing and distribution, interior design, guest care, and more so you don’t have to lift a finger. In addition, our flexible management options let you choose what’s right for you and your home; earn guaranteed monthly rent or a monthly revenue share for maximized income. 

If you’re interested in learning more about how AvantStay can maximize your return on investment, our team is ready to help. Get started with our vacation rental management experts today!

If you’re looking to purchase your next piece of real estate, you’ve probably come across the terms “second home” and “investment property.” While these terms are sometimes used interchangeably, the property types may or may not be the same. Do you plan on using your home as a vacation home? A short-term rental? Or maybe both? It’s important to understand the differences between a second home and investment property so you know what to expect when it comes to things like mortgages, taxes, and the property manager that’s right for you. 

Before we break down the differences, it’s worth mentioning that mortgage requirements for second homes and investment properties vary between lenders. Lenders often use criteria based on definitions from Fannie Mae and the IRS, but they may not be the same. For that reason, you should always check with the IRS for rental income tax information, and research mortgage qualifications for second homes and investment properties in your local market.

What is a second home? 

A second home is a property that you occupy for part of the year while maintaining a primary residence (where you live for most of the year). Second homes are often used as vacation homes, but can also be properties (like condos) in an area that you regularly visit. 

According to the IRS, second homes can be rented out to generate income as long as you live there for more than 14 days a year or for more than 10% of the total days you rent it to others. This allows you to qualify your property as a second home rather than an investment property. 

What is an investment property? 

According to Rocket Mortgage, an investment property is real estate purchased to generate income, receive tax benefits, or profit from appreciation. Investment properties are not your primary residence and can be purchased individually or by a pair or group of investors. Investment properties can be rented out on a long-term or short-term basis. These properties are often purchased to renovate and resell for profit, known as “flipping.” 

Now that we have a basic understanding of the two, let’s dive into the five key differences. 

1. Owner occupancy 

Second home: Must be lived in or used by the owner for at least 14 days of the year. 

Investment property: Must be occupied by the owner for less than 14 days of the year. 

2. Days rented 

Second home: Can’t be rented out for more than 180 days of the year. 

Investment property: Can be used as a rental property for any amount of time. 

3. Distance from primary residence 

Second home: Must be at least 50 miles from the owner’s primary residence.

Investment property: Can be within 50 miles of the owner’s primary residence.

4. Mortgages

Second home: 

• Down payments start at 10% 
• Requires a minimum of two months of cash reserves 
• Can only get a mortgage on a single-unit property
• Lower interest rate than an investment property

Investment property: 

• Down payments start at 15% 
• Requires a minimum of six months of cash reserves 
• Can get a mortgage for a property with up to four units
• Higher interest rate than a second home

5. Taxes

Second home: Able to reduce the amount of taxable rental income by deducting expenses for owning the home. To qualify, the property must be rented for more than 14 days or at least 10% of the total days rented per year.

Investment property: Option to claim expenditures for mortgage interest, insurance, property taxes, utilities, maintenance, and losses due to damage. You can also deduct a percentage of the property’s value each year due to depreciation.

Second home vs. investment property: key takeaways

Considering taking out a loan to purchase a second home or investment property? Before you meet with a mortgage lender, make sure you understand the key differences and have a plan for how you’ll be using the property. Keep in mind that you’ll see higher interest rates, down payments, and cash reserve requirements on a mortgage for investment properties compared to second homes, but the return on investment can make it all worthwhile. 

Earn more from your investment property with AvantStay 

If you have an investment property that you’d like to operate as a short-term rental, consider working with a vacation rental management company. When you partner with AvantStay, we’ll manage your investment to give you peace of mind and maximize your income. Our flexible management options let you choose what’s right for you and your home; earn guaranteed monthly rent or a monthly revenue share for maximized income. 

We know that running a vacation rental is expensive and time-consuming, so we offer the first hands-off approach for homeowners. We use a proprietary tech suite to power bookings, operationalize in-field management, and activate an elevated guest experience.

If you’re interested in learning more about AvantStay’s flexible management options and how we can maximize your return on investment, our team is ready to help. Get started with our vacation rental management experts today! 

A clean vacation rental is more important today than ever before. Guests expect (and deserve) to walk into a pristine, clean space so they can enjoy their trip to the fullest. According to AirDNA, short-term rental hosts who scored high on cleanliness (pre-pandemic) received a 2.3% occupancy rate increase compared to hosts who scored lower. In 2021, hosts with high cleanliness rates saw their occupancy rates increase by 6.8% over hosts who scored lower. 

Guest standards of vacation rental cleanliness have changed since the beginning of the pandemic, and vacation rental homeowners need to upgrade their cleaning protocols to meet these expectations. After all, happy guests lead to positive reviews, repeat visitors, and more revenue for you. Keep reading for our complete vacation rental cleaning checklist that’s sure to impress your guests and comply with CDC standards. 

Supplies needed for vacation rental cleaning 

Keep your short-term rental stocked with cleaning supplies, or provide these for your housekeeping team to use. If you choose to partner with AvantStay for vacation rental management, we’ll provide all CDC-compliant supplies to our housekeeping staff, at no additional charge to you. These supplies are also available to guests so they can choose to keep the home tidy throughout their stay. Some basic supplies needed before you start completing our vacation rental cleaning checklist: 

• Disinfectant
• All-purpose cleaner
• Vacuum
• Spray mop
• Floor cleaner
• Broom and dustpan
• Paper towels
• Sponges
• Dishwasher detergent
• Dish soap
• Bleach

Living room 

Guests will likely spend a lot of time in the living room, so make sure all high-touch surfaces are disinfected and make the space ready for guests to gather and make memories. 

• Disinfect remotes, stereos, and speakers
• Clean the TV screen 
• Dust and disinfect coffee tables, side tables, and TV consoles
• Disinfect light switches
• Dust windowsills and ledges
• Dust blinds, ceiling fans, lamps, shelves, and any other surfaces
• Clean windows and sliding glass doors
• Vacuum furniture, under cushions, and underneath furniture
• Wash furniture covers (as applicable) 
• Wash used throw blankets
• Sweep, vacuum, or mop the floor and carpet (as applicable) 
• Reorganize books, games, and movies 
• Straighten decor, pillows, and blankets
• Check condition of welcome book and place in a visible spot

Kitchen 

Create a blank canvas for guests to make their own meals and family dinners by cleaning all surfaces, kitchen gadgets, and restocking the essentials. 

• Unload the dishwasher 
• Check that all dishes, utensils, pots and pans are clean and organized
• Clean and disinfect counters, tables, chairs, and cabinets 
• Wipe down oven (interior and exterior) and stovetop 
• Clean and sanitize sink and backsplashes
• Clean and disinfect interiors and exteriors of appliances, including the toaster oven, microwave, and coffee maker
• Sweep and mop the floor, move rugs and furniture first
• Clean inside and outside of refrigerator and freezer and discard leftover food 
• Wipe down windows and windowsills
• Refill soap dispenser
• Replace dish towels, linen napkins, sponges, and paper towels 
• Replace garbage bag

Bedrooms

Allow guests to completely relax and unwind with fresh linens and a cozy, tidy space. 

• Wash and replace sheets, pillowcases, mattress pads, pillow protectors, duvet covers and blankets
• Check for personal belongings left in drawers, under the bed, behind the headboards, behind nightstands, and in closets 
• Dust and disinfect nightstands, dressers, and bedposts
• Dust shelves, decorations, windowsills, ledges, and baseboards 
• Clean TV screens (as applicable) 
• Vacuum floor and under beds
• Disinfect light switches and remotes
• Remove trash and clean trash cans

Bathrooms

Leave bathrooms in excellent condition for your next round of guests by disinfecting all surfaces, check the condition of towels and bath mats, inspect for mold and mildew, and scrub away any soap residue. 

• Scrub and disinfect showers, bathtubs, sinks, faucets, vanity, and backsplashes
• Clean and disinfect toilet, including the bottom half and behind 
• Clean mirrors
• Wipe down windows and windowsills (as applicable) 
• Clean dust and debris on vents and fans
• Wash and replace all towels and bath mats 
• Clean or replace shower curtains as needed 
• Vacuum and mop floors 
• Replenish soap and any complimentary toiletry items
• Replenish toilet paper and tissues 
• Remove trash and clean trash cans

Laundry room 

Make sure the laundry or utility room is spotless, organized, and well-stocked in case guests need to do laundry during their stay. 

• Empty and clean out washing machine, detergent tray, dryer, and lint trap 
• Wipe down machines and disinfect buttons and doors
• Clean out and disinfect sink
• Dust shelves and all surfaces 
• Vacuum and mop floors 
• Restock laundry detergent, softener, stain remover, and dryer sheets
• Keep supplies organized and labeled 
• Make sure iron, ironing board, laundry baskets, and drying racks are in place 
• Remove trash and clean trash cans

Outdoor space

If your short-term rental has an outdoor space, make it inviting and ready to use so guests can enjoy these fan-favorite amenities.

• Sweep porch or patio
• Wipe down and straighten all furniture, wash chair cushions if needed 
• Disinfect outdoor eating areas and tables
• Wipe down grill and make sure grilling tools are clean
• Clean up area around fire pit or wipe down fire pit table
• Make sure outdoor lights are working properly
• Pull weeds and rake leaves in the yard or garden 
• Remove leaves and debris from the pool and hot tub, clean filters and replace chlorine 
• Disinfect yard games and set them up so guests can easily use them 

Better home care with AvantStay

Travelers consistently rank cleanliness and housekeeping among the most important factors when selecting where to stay. With AvantStay, you’ll never have to worry about the care and condition of your home. We have implemented numerous processes and checkpoints to ensure our cleaning standards set the bar for the industry.

We pride ourselves on a rigorous 100-point vacation rental cleaning checklist that ensures our housekeepers perform deep cleans using products and standards that comply with (and exceed) CDC guidelines before every stay. In addition, we provide a bi-annual deep clean to ensure homes stay in great shape all year round. Our teams are held accountable to these high standards by requiring pictures throughout the cleaning process, and our in-market teams conduct pre-stay and post-stay audits for additional quality control. To ensure commitment to quality, our housekeepers are paid above market rate and are enrolled in an accountability program that rewards high-quality cleaning ratings.

Another perk when you choose AvantStay as your vacation rental management company: guests can use in-app upgrades and experiences to not only request mid-stay cleans, but arrange private chef-catered dinners, wine tastings, in-home spa treatments, transportation, and more. A sparkling clean home paired with our personalized guest services drives higher satisfaction, more five-star reviews, and repeat visitors. 

If you’re interested in learning more about AvantStay’s best-in-class care and how we can maximize your revenue, our team is ready to help. Get started with our vacation rental management experts today! 

The US short-term rental industry continues to experience the impact of COVID and its new variants in a positive way. Many offices have delayed reopening or done away with offices altogether. Hybrid work schedules are the new normal, allowing more people to work remotely. Short-term rentals are benefiting from the increase of flex work, with more long weekend and long-term stays (trips over 28 days). According to AirDNA, long-term stays make up more than 15% of bookings, which has remained steady since the beginning of the pandemic. 

Flex work is allowing people to do their job from wherever they choose, which has been disrupting traditional seasonal patterns in many markets like Coachella Valley and Scottsdale. Short-term rental owners in these markets are experiencing increased demand, higher ADRs, and more revenue year-round, largely due to remote workers’ flexibility. 

So, what does this mean for you and your short-term rental? You should capitalize on the flex-work movement by accommodating remote workers in your vacation rental. By creating a remote workspace (and promoting it in your listing) you can attract more flex-work travelers who are likely to extend their stay and work comfortably from your short-term rental. Check out our vacation home designs and tips for creating the perfect remote workspace for your guests. 

Use multifunctional pieces and small spaces

While a desk is ideal, it’s not your only option when creating a remote workspace. Side tables and bookshelves can be transformed into a desk with the right setup; all you need is enough surface area for a computer and supplies, and room for a chair to fit comfortably. 

Not all short-term rentals have a spare room that can be turned into an office. Set up your remote workspace in a bedroom corner, under a staircase, or any nook where a desk can fit–just be sure it can function without getting in the way, connect to the internet, and receive natural light. 

Splurge on a comfortable chair 

A desk chair can make or break your remote work experience, especially if you’re sitting for long hours. No one wants to be uncomfortable while working, so invest in an ergonomic chair that will support your guests’ posture and maximize comfort. Select a chair with adjustable lumbar support, as well as an adjustable seat and armrests so guests can choose what’s best for them. Also, consider purchasing a laptop stand so guests don’t strain their necks by looking down. 

Purchase shelves for storage and artwork 

If your desk doesn’t have built-in storage or if you don’t have room for additional storage like drawers or filing cabinets, opt for floating shelves. Shelves are a great way to save floor space, declutter, and add some personality to the room. Provide baskets or boxes with additional office supplies, along with empty ones for guests to hide their extra chargers and cords. This will help guests get organized and ready to work without feeling cramped and out of place. 

You can also use the shelves to decorate the workspace and spark creativity. Help the space feel more inviting by placing some artwork, books, or plants on the shelves. Adding a bit of color goes a long way.

Be mindful of the backdrop and lighting

If you can, position the desk to be in front of a non-distracting background. Think solid walls or bookshelves and not an open area with lots of foot traffic. Also, try to set up the remote workspace in a place that gets a decent amount of natural light. Natural light not only decreases drowsiness, reduces eye strain, and increases productivity, but is more flattering than artificial lighting on video calls. 

Bring the outdoors inside with houseplants  

Brighten up your remote workspace with a few houseplants. Plants not only purify the air and act as a living decoration, but can help lower stress levels and boost productivity. Plants also provide visual and sound barriers which can help separate your workspace from the rest of the room or area. Go for low-maintenance plants that are safe for pets so you don’t have to worry about a thing. 

Design for flex workers

The way in which people work and travel is changing, and you should prepare your vacation home to reap the benefits. More flex workers are traveling year-round and booking longer stays to work remotely, which means higher daily rates and more revenue for you. Capture flex workers’ attention by showcasing your short-term rental’s workspace in your listing. 

Don’t have an eye for design? When you partner with AvantStay, you get access to our award-winning interior design team and services—free of charge! Our designers review every home added to our portfolio and create memorable and inspiring designs that transform spaces and increase value. We purchase the furniture so you don’t have to spend a dime, and arrange bedrooms and common spaces to maximize occupancy. Let us do the heavy lifting and work with you to create the perfect remote workspace for your guests. 

If you’re interested in learning more about our vacation rental management and design services, our team is ready to help. Get started today!

The moment guests arrive at your short-term vacation rental, they should have everything they need to relax and fully enjoy their vacation. First impressions are key when welcoming guests into your home. While cleanliness, furnishings, decor, and amenities are all essential to a great first impression, a simple but impactful way to impress your guests is by providing a vacation rental welcome book. 

A vacation rental guest book is a great way to ease any stress from traveling, answer questions, create a relaxing environment, and make your guests feel at home. Contactless check-ins are the new normal, so provide guests with all the information they’ll need to settle in and make the most out of their stay. 

Taking the time to create a vacation rental guidebook will show guests that you care. Laying out everything guests need to know about your home, listing amenities with how-to instructions, and providing information about things to do and places to explore in the area will help create an exceptional guest experience. Happy guests lead to positive reviews, more bookings, repeat visits, and more short-term rental income for you. Keep reading to learn how you can create the ultimate vacation rental welcome book.

What to include in your vacation rental guest book:

• Welcome information and personal note
• Local contact information
• Check-in and check-out instructions
• Rental property rules and local ordinances
• Amenities list
• How-to instructions 
• Things to do 
• How to get around

Welcome information and personal note

Help your short-term vacation rental guests feel right at home by starting off with welcome information and a personal note. Show your guests that you care about their experience and that you’re a real person, with a personalized “hello.” Tell them about yourself and what makes your home unique. In this section, you can also include a summary of cleaning protocols, trash and recycling locations and schedules, parking information, entry instructions or access codes, how to connect to the WiFi, and your contact information.

Local contact information 

Give your guests peace of mind and help them feel at ease by including at least one local contact in your welcome book. This can be yourself, a property manager, a neighbor, or a friend who is familiar with your short-term rental. Be sure to provide their phone number and email address. Also include any contacts specific for maintenance issues, along with the nearest medical clinic or hospital, fire department, and police department in case of an emergency. 

Check-in and check-out instructions

You’ll likely send your guests instructions for check-in before their arrival, but also add them to your vacation rental welcome book for easy reference. This can be information like your rental’s full address, access codes, directions to your property from the nearest airport or main roads, and check-in and check-out times. 

For the check-out procedure, let guests know if the time is flexible or strict, and how they should leave your home before departure. Should they turn off all the lights, place trash and recycling in bins, load and start the dishwasher, sign out of streaming devices, and return the keys to a lockbox? Create a simple checklist for your guests so check-out is as easy as possible. 

Rental property rules and local ordinances

Limit any chances for confusion or misunderstanding by laying out all of the house rules and local ordinances. Use this section in your vacation rental guest book to list your short-term rental policies for pets, smoking, and parties, along with any quiet hours for your home. If your short-term rental is in a complex, subdivision, or gated community, be sure to include those rules as well. This section can influence how guests treat and leave your property so you’ll never have to worry about its condition.

Amenities list

Don’t be afraid to show off all the great amenities your short-term vacation rental has to offer. Let your guests know exactly what is available to them in your home, outdoor space, or surrounding property. While pools, hot tubs, and game rooms are usually the stars of the show, don’t forget to highlight any hidden amenities like bikes in the garage, washer and dryer, or community fire pit and grills. 

How-to instructions 

Leave no room for frustration and negative reviews from guests who can’t figure out how to turn on a tricky hot tub. Include detailed instructions for all amenities and appliances so guests don’t have to waste their precious vacation time. Consider including how-to instructions for: 

• Property access (lockbox code, garage code, gate)
• Wireless internet access
• Thermostat
• Fireplace or outdoor fire pit
• Barbecue
• Swimming pool
• Hot tub 
• Washer and dryer
• Kitchen appliances
• TV, remote control, and DVD player
• Streaming devices like Roku

Things to do 

Showcase your local expertise with a “things to do” section in your guidebook. Recommendations from a true local are a great way to make your guests feel comfortable and welcome. Create a list of your favorite spots and activities, along with popular local attractions that everyone seems to love. Include a variety of options for different groups of travelers like families, friends, or couples. Some good recommendations to include: 

• Restaurants with price ranges 
• Coffee shops
• Shopping
• Nightlife
• Beaches, hikes, golf courses, and parks
• Museums and monuments
• Grocery stores

How to get around 

Help your short-term rental guests navigate the area with a section about local transportation. Provide contact information, schedules, and any other helpful details for the following:

• Car rentals
• Taxi and shuttle services
• Bus routes
• Train stations 
• Local area maps

Impress your guests with a vacation rental welcome book

A vacation rental guest book might seem like a minor detail in the grand scheme of short-term rental management. However, this simple gesture will enhance your guests’ experience from beginning to end. A welcome book will show your guests that you care about their vacation and time at your home, and lead to positive reviews, more bookings, and ultimately more revenue. 

If you’re interested in partnering with a vacation rental management company to remove the guesswork from the guest work, AvantStay is here to help. From design to maintenance to rental management, we take care of your home as if it were our own. Our proprietary tech suite powers bookings, operationalizes in-field management, and activates an elevated guest experience. We take care of all the work to maximize your home’s income for you—it’s that simple.

Have questions about AvantStay’s vacation rental management? Our team of experts is ready to help–get started today!

Challenge: Help a seasoned short-term rental owner receive more five-star reviews, become an Airbnb Superhost, and drive more bookings year-round.

Background

Robert purchased his Park City vacation property in 2019 and had been successfully managing it as a short-term rental. Despite bookings being steady, Robert couldn’t figure out how to encourage guests to leave reviews and become a Superhost on Airbnb.

During his time managing his vacation rental on his own, Robert found it difficult to devote more of his time to communicating with guests along with taking care of mid-stay requests. Robert doesn’t live in Park City full-time. Therefore, he would often have friends check in on his property or assist guests while out of town.

Robert soon realized he needed additional help to provide his guests with excellent service and around-the-clock support. He began looking for a vacation rental management company to partner with. Robert reached out to AvantStay when he learned about our in-app upgrades and experiences, on-the-ground local support teams, and Airbnb Superhost status.

Solution

During the onboarding process, Robert discussed his struggle with becoming an Airbnb Superhost and not always being able to go above and beyond for his guests. He was pleased to learn that AvantStay’s local support team in Park City is available 24/7. The team can take care of every guest issue and stock the home with personalized welcome packages before each stay. Robert was also excited about AvantStay’s in-app upgrades and experiences, allowing his guests to request in-home massages, fridge stockings, mid-stay cleanings, and more.

With the COVID-19 pandemic still present, cleaning also became difficult for Robert. His home now receives premium care from AvantStay’s housekeeping team. The team professionally cleans after every stay, adhering to CDC-grade cleaning standards and a premium 100-point checklist.

On the design front, AvantStay’s interior designers saw an opportunity to refresh Robert’s home. They purchased furnishings to create a cozy space for guests to warm up after a day of skiing or relax after hiking, fly fishing, mountain biking, or exploring the town.

Property performance

Time with AvantStay: 13 months
Occupancy rate: 67%
Weekend occupancy rate: 77.5%
Rental income: $96,850

Results

After a year of working with AvantStay, Robert is officially an Airbnb Superhost with a five-star rating overall, and five stars for both communication and cleanliness. His short-term rental now receives more positive reviews than ever, with guests frequently commenting on the welcome gifts, in-app upgrades, amenities, and design.

Overall, Robert’s Superhost status and positive reviews have helped Robert increase bookings, even during Park City’s off-season. Since partnering with AvantStay, Robert’s occupancy rate increased to 67%, surpassing the average rate of 47% for the market.

“10/10 would recommend AvantStay for any short-term rental owners,” said Robert. “Even being located in a seasonal destination, my property still has more bookings than ever. My neighbors keep asking me how I keep the place filled. I’m always excited to tell them about AvantStay.”

Interested in learning more about vacation rental management with AvantStay? Our team of experts is here to help. Unlock your vacation rental’s full value and get started with our team today.

Challenge: Help newly retired couple maximize guaranteed income and have more time to enjoy new phase of life.

Background

Newly retired Dean and Lisa purchased their Scottsdale vacation home in 2017. For their first year, they managed it as a short-term rental on their own. However, home maintenance and guest requests quickly overwhelmed the couple. Their second home became a burden. It became hard to spend time with family and travel during the new phase of their lives. They wondered what they could do to maximize guaranteed income without hassle.

During their short-term rental management experience, Dean and Lisa found it difficult to keep up with repairs, general maintenance, and landscaping while visiting family out of state. Once the pandemic hit, they also struggled to stay on top of stringent safety and cleaning protocols needed to ensure guests’ safety. Performance-wise, they knew their home had the potential for more bookings. They knew they were missing out on younger groups of travelers.

Dean and Lisa had never worked with a vacation rental management company before. However, they were interested in AvantStay when they learned about its flexible management options, premium home care, and around-the-clock guest support.

Solution

Once Dean and Lisa discovered the master lease management option, they were excited to partner with AvantStay. With this option, they would maximize guaranteed income, regardless of bookings or the season.

The two also discussed their concerns about maintenance and guest support with the AvantStay team. They were thrilled to learn that AvantStay would take care of everything from maintenance, utilities, surveillance, and cleaning to 24/7 guest support and in-app upgrades and experiences.

During the initial design consultation, the AvantStay team saw an opportunity to increase occupancy. They swapped out the unused office space for a second seating area with sleeper sofas. They also purchased all new furniture and design elements to modernize the home and appeal to a younger demographic. The large backyard, patio, and swimming pool also provided a great opportunity to create a fun space for guests to gather and entertain.

Property performance

Time with AvantStay: 37 months
Occupancy rate: 74%
Weekend occupancy rate: 95.2%
Rental income: $120,000 per year

Results: short-term rental income increased

Going on three years with AvantStay, Dean and Lisa couldn’t be more confident in our partnership.

“We went from an occupancy rate of 40% to 74% since we partnered with AvantStay,” said Dean. “Their talented interior designers gave us free design recommendations that actually helped us bring in more bookings and better reviews.”

“We love our guests, but since working with AvantStay we’ve been able to spend more time with family and our new grandkids, and less time worrying about bookings, guest requests, and upkeep,” said Lisa.

The two are frequent travelers, and also enjoy using AvantStay’s Vacation Club credits to rent out other AvantStay homes in places like Hawaii and Palm Springs.

Interested in learning more about how AvantStay can increase your occupancy rate and short-term rental income? Our team of vacation rental management experts is here to help. Get started today!

Challenge: Give real estate investor peace of mind and maximize revenue so she can focus on growing her portfolio.

Background

Mariah owns several short-term rental properties in Temecula and Sonoma. While she loves getting her properties up and running, her true passion is searching for investment properties to use as short-term rentals. Last year, Mariah started researching vacation rental management companies to partner with. Her goal is to focus her time on finding new additions for her short-term rental portfolio.

Mariah researches everything, which is why she excels at finding new homes to purchase. She understands the ROI when a property is maintained properly. Finding a company to take proper care of her homes, bring in the right revenue, and not list them for bottom-dollar were her top priorities. However, during her search, Mariah found that most management companies’ revenue projections were less than what she was already making on her own.

Mariah finally reached out to AvantStay for a free revenue projection for one of her Temecula homes. She was pleased to learn that our projection perfectly aligned with her revenue goals.

Solution

Mariah always thought of AvantStay as the “high-end” option but was even more interested when she learned about our interior design offerings and in-app upgrades and experiences for guests.

“I like to think that I have an eye for design, so I appreciated AvantStay’s consultation. They showed me how they would rearrange some of the main living spaces and the back patio to increase functionality and occupancy,” said Mariah. “Not only is their design aesthetic beautiful, but the new, complementary furniture has seen a ton of guests and looks as good as it did on day one.”

The guest experience and positive reviews are also important to Mariah. Taking care of guests during their stay was one of the most time-consuming parts of managing her own homes. She was thrilled to leverage AvantStay’s upgrades and experiences. Mariah’s guests can now easily arrange everything from local chefs to local tours, mid-stay cleanings, in-home spa treatments, transportation services, and more.

Property performance

Time with AvantStay: 12 months
Occupancy rate: 71%
Weekend occupancy rate: 78.8%
2021 realized revenue: $96,600

Results

After one year of partnering with AvantStay, Mariah knows she made the right decision. Her Temecula home has more bookings and is generating more income than she saw while managing the home on her own.

“This past July, we had over $33,000 in bookings which is my best month out of all my homes to date,” said Mariah. “I’m blown away by the performance and the positive feedback from guests.”

Mariah has now been consistently getting five-star reviews on both Airbnb and HomeAway. A common sentiment from guests is that they appreciate the “excellent customer service” and amenities.

Now that Mariah has more money and time, she is excited to reinvest in her short-term rental business. She even has plans to list three more properties with AvantStay.

Interested in learning more about vacation rental management with AvantStay? Our team of experts is here to help. Unlock your vacation rental’s full value and get started with our team today.

Despite the recent pandemic, investing in short-term rentals is still a world of opportunity for people looking to generate passive income. According to AirDNA, short-term rentals listed full-time in 2021 earned their highest ever annual revenue at $56,000. This is 35% higher than at the start of the pandemic.

Although it’s been uncharted territory, the future of travel is looking up. 82% of families around the world are still planning to go on a trip sooner rather than later. Airbnb reported its most profitable quarter ever in Q3 2021, with a net income of $834 million.

With the right strategy, investing in short-term rental properties can be entirely rewarding. As with any investment opportunity or new business venture, there’s a lot of research to be done to better understand the industry and the market. Keep reading for our 10 expert tips for investing in short-term rentals.

Tip 1: Compare short-term rental location options

A large part of the success of your vacation rental venture depends on where your property is located. You might think that a secluded lake getaway is ideal for generating that additional income. However, it might be too far from local attractions and not a popular destination for travelers.

Research and track key metrics of potential markets like average daily rates, occupancy rates, and what other homes are selling for in the area.

Consider property appreciation statistics as well. Some properties can increase in value by as much as 25%, depending on what’s happening in the neighborhood and their amenities. This should also form part of your property location decision.

Tip 2: Know the demand for short-term rentals

Once you’ve identified or at least shortlisted some of your potential locations, the next step is to find out if there is a demand for short-term vacation rentals in the area.

Remember that vacation rental demand and long-term, or residential, rental demand are two very different things. For example, people looking for residential rentals might look for things like proximity to schools and hospitals. On the other hand, vacationers might look for proximity to local attractions or amenities included.

Did you know that there are 115,000 vacation rental companies worldwide? The demand for short-term rentals is definitely on the rise. AirDNA is predicting that investor interest will surge with demand rising, and expects a 15% increase in US listings in 2022. There is a demand; you just have to find your place in it.

Tip 3: Understand low-season and high-season fluctuations

Almost every vacation spot has low-season and high-season calendars. These are the times of the year when owners can expect higher numbers for a certain period of time. Less busy times of the year are referred to as low-season.

Not only does this affect your overall income projections, but you may need to be open to flexible pricing depending on the season.

There are markets, like Lake Tahoe, that generate steady income throughout the year with strong winter and summer seasons. Be sure to factor this in when choosing your location.

Tip 4: Have a solid business plan

Just like any new business venture, you should have a solid business plan for your short-term rental. You wouldn’t open a new restaurant without having a business plan. The same goes for investing in short-term rentals.

Your business plan doesn’t only have to include this property. Do you intend on owning more than one short-term rental property? How do you see your business growing in the short and long-term future?

Also, you need to figure out just how much of the business operations you’ll be doing yourself. How involved are you going to be? Will you hire someone to help you with marketing, or someone to take care of maintenance? What about helping with guests’ mid-stay requests? You might want to consider partnering with a vacation rental management company, like AvantStay, that can deliver all of these services and more.

Tip 5: Figure out financials for your short-term rental investment

Deciding how you’re going to finance your new vacation rental venture is key to your overall success. First, you’ll need to have a clear understanding of your investment objectives. Is your goal to have a short-term rental for occasional personal use? Do you want rental income to offset your mortgage? Or are you looking to maximize your cash-on-cash returns?

Once you have an understanding of market performance and your investment objectives, you can begin researching financing options. Three popular options for short-term rentals are traditional loans, asset-based loans, and hard money loans. Chat with different financial institutions and weigh the duration of credit as well as the different interest rates. Go with the option that puts you under the least amount of pressure for repayments.

Tip 6: Identify your ideal guest

When choosing a short-term rental property, envisioning who will stay there is going to inform your overall marketing strategy.

For example, if you purchase a high-end beachside property with modern features, then your ideal guest might be newly engaged couples or retired couples looking for a quiet week-long getaway.

Identify your ideal guest before you consider the property that you want to invest in. These are the people that you’ll want to attract with the right furnishings, decor, and amenities.

Tip 7: Pay attention to rules and regulations

Make sure that you are fully updated and understand the rules and regulations in place for the property, along with the neighborhood and city.

Check with your local city or county government about taxes. You might also need a general business license or short-term rental permit. These ensure your vacation rental is compliant with zoning restrictions and meet the local health and safety requirements. They also ensure neighboring properties know about your rental operation and aren’t taken by surprise.

Your due diligence on local rules and regulations will keep you safe from hefty fines and legal repercussions.

Tip 8: Plan your expenses

Investing in short-term vacation rentals is a great way to generate extra income, but you need to be mindful of both planned and unplanned expenses that may come your way as a property owner.

There are your usual consumables, things like cleaning supplies and toilet paper. Then, you have maintenance on facilities such as air conditioning, swimming pools, and landscaping.

Budget for these expenses so you’re never taken completely by surprise if you need to spend a little extra one month to repair the swimming pool heater.

Tip 9: Budget for insurance

Accidents happen, so make sure your short-term rental is covered when it comes to any breakages or accidents that may come your way.

A good short-term rental policy will cover the loss of income if your property cannot be rented due to damages, and the resulting repairs needed to make it occupancy-ready. If a guest should get injured on your property during their stay, short-term rental insurance can also help cover medical bills or legal fees. If guests accidentally leave a faucet running after they check out, insurance can help with the additional utility cost.

The average cost of short-term rental insurance policies ranges from $1,000 to $3,000 a year. Check with your current insurer to see if they offer any discounts for bundling policies.

Tip 10: Manage your overall expectations

It’s important to manage your expectations as you start the journey into buying a rental property.

Many vacation rental owners think that success will flow in overnight if they pick the right property, but that’s not always the case. Managing a vacation rental yourself can be a heavy lift. There’s handling guest requests, figuring out distribution on listing sites (known as OTAs or Online Travel Agencies), other digital marketing efforts, managing and maintaining your vacation property, and much more that goes into it.

It’s easier to go into the vacation rental industry with realistic expectations. Talk to other short-term rental owners about their experience. Research and understand the industry, the market, and what is required before you anticipate your success or failure.

The simplest way to manage your short-term rental investment

Investing in short-term rentals is not to be taken lightly. As you can see, there are many cogs that make the rental machine work. It can be a rewarding experience both mentally and financially if you can find the right property, with the right target market in the right location.

If you’d rather partner with a vacation rental management company to remove the guesswork from the guest work, AvantStay is here to help. From financials to design to maintenance, we take care of your home as if it were our own. Our proprietary tech suite powers bookings, operationalizes in-field management, and activates an elevated guest experience. We take care of all the work to maximize your home’s income—it’s that simple.

If you’re interested in learning more about how AvantStay can maximize your return on investment, our team is ready to help. Get started with our vacation rental management experts today!

So, you’re in search of a vacation rental manager? Whether this is the first vacation home that you want to list as a short-term rental, or you’re looking for a new company to manage your fleet of vacation properties, our guide will help you make an informed, stress-free decision. We’ve compiled all the questions you should ask when wondering how to choose a vacation rental management company. Let’s dive in.

In this guide we’ll answer:

How do other short-term rentals perform in my market?

What are vacation rental management fees & contract terms?

What services are included in my contract?

How do you advertise my home?

How large is your rental portfolio?

How do I know my home will be in good hands?

Why should I partner with a vacation rental management company?

How do other short-term rentals perform in my market?

A great vacation rental manager should be an expert in all aspects of your local market. Be sure to ask them about the other types of vacation rentals in your area and their rates, seasonal trends, and local regulations.

Unlike traditional management companies, which use simple on and off-season pricing, we use our proprietary dynamic pricing model that leverages 75 to 150 pricing “seasons.” These seasons capture and optimize revenue based on occupancy, day of the week, seasonal fluctuations, holidays, and market events.

What are vacation rental management fees & contract terms?

Short-term rental management companies can charge you anything from 12-50% of your rental income. While a lower management fee with higher promised profits sounds great, make sure you know exactly what services are included with your contract so you don’t end up breaking even. If your budget allows it, consider paying above-average management fees in return for services that will wow your guests, boost your ratings, and ultimately drive more revenue.

Also, ask about the terms and conditions of your contract. Can you end your contract early if the company isn’t performing well or isn’t delivering on the promised services? Know your outs and any opportunities for negotiation.

When it comes to contracts, one size doesn’t fit all. That’s why we offer customizable programs that work for you. Our flexible management options let you choose what’s right for you and your home. Select between our Master Lease and Vacation Rental Management agreements:

Master Lease

We pay you a guaranteed monthly rent in exchange for leasing your vacation property to AvantStay. The amount is a fixed, previously agreed-upon monthly rent that you receive regardless of season or how many bookings we make.

Vacation Rental Management

We earn a percentage of the revenue we bring in and pay you a monthly revenue share. The amount varies, depending on the season and guest demand, with a potential for higher profit during high-demand periods.

What services are included in my contract?

Management fees and contracts should help you deliver an exceptional experience for your guests. When vetting vacation rental managers, ask what is and isn’t included in your contract. Services like marketing, interior design, photography, listing and pricing your home, managing reservations, and home maintenancef are all worth investing in to ultimately maximize your revenue. Consider partnering with a full-service company, like AvantStay, that can deliver these services.

How do you advertise my home?

Once your home listing is live, the approach any vacation rental manager takes to advertising and distribution is key to your success and can make the difference between getting plenty of bookings or getting overlooked.

Ask where they plan to advertise your home, how many bookings come from their site, what other listing sites they partner with (known as OTAs or Online Travel Agencies), how they drive positive guest reviews, and other services they provide like photography or search engine marketing. On average, vacation rental companies that manage over 1,000 properties only list on five platforms, so be sure to vet carefully.

With AvantStay, our powerful distribution capabilities are included in your management agreement. 40% of bookings come directly from our site, but we also optimize each listing across more than 60 distribution channels, including Airbnb, VRBO, La Cure, LVH, TripAdvisor, Expedia, Booking.com, and Homes & Villas by Marriott International.

How large is your rental portfolio?

When inquiring about a vacation rental manager’s portfolio, it’s important to gauge two things: does a large portfolio mean they’re successful and maintain good relationships with homeowners, and how do they scale their operations? Ask if they can provide owner testimonials, case studies, or even put you in touch with a current homeowner to see if their management is a good fit for you.

A good vacation rental manager will scale their operations to ensure all properties receive top-notch care. Ask about the ratio of staff to rental properties in your area. At AvantStay, we have one of the lowest homes-to-employee ratios in the industry, meaning for every home in our collection, we have several employees on the ground and at our headquarters that can give you their full attention.

How do I know my home will be in good hands?

Are you worried about noise complaints from your neighbors? Or wonder who will bring guests fresh linens if requested mid-stay? Be sure to ask potential management companies about maintenance, security, and guest and owner support services offered.

To give you peace of mind, we manage inquiries, vet every guest, and take care of their every need during their stay. Our local operations team manages the maintenance, upkeep, and surveillance, while our housekeeping team professionally cleans your home after every stay in adherence with our premium and CDC-grade cleaning standards. In addition, we provide and install home devices such as smart locks, noise sensors, doorbell cameras, and more, compliments of AvantStay.

Why should I partner with a vacation rental management company?

A full-service vacation rental management company should create a stress-free experience for you. Owning a vacation home can be expensive and time-consuming, so we offer the first hands-off approach for short-term rental owners. We use a proprietary tech suite to power bookings, operationalize in-field management, and activate an elevated guest experience. If you have questions, our team of experts is here to help. Unlock your vacation rental’s full value and get started with our team today.