Guide: Start Your Own Vacation Rental Business Today!
By Seth Murphy | Aug 10, 2021
Are you thinking about forming your own vacation rental business? There are several things you should keep in mind as you are starting out, so let’s take a look at a few key things to remember:
Forming a business strategy
The first thing you want to do when starting a new business is figuring out where you’re going with it. This involves several key steps.
- Ask yourself: Why do you want to invest in rental property? Is this a good fit for your business goals?
- Formulate a business plan. This can help you strategize, forecast profits, and get organized. This is a huge part of getting investor attention, as well.
- Apply for business loans. The Canada Small Business Financing Program can be a great place to start.
- Invest in payroll services, defined as an automated system that can help you organize your payroll processes so you don’t have to worry about paying your people on time or filing taxes incorrectly.
Learn all about real estate
The health of the real estate market depends on multiple factors, but there are several constants that you can learn and build from as you get started in the industry.
- Invest time into learning the latest statistics and sales numbers from the Canadian housing market.
- Learn where the best properties in your area are and what they’re going for. Keeping your prices competitive is part of the process, and Donna can be your guide in the process.
- Consider looking into a real estate arbitrage situation, where you buy a property and then turn around and sell it for more money. Certain markets take to this situation more readily, so do your research before you choose this option.
Where do you get clients?
Don’t overlook this important part. It’s best to have customers lined up to buy before the business is even off the ground because you want to show your investors that the business is worth spending money on.
- Ask friends and family to put up funding for you and become your first clients.
- Advertise on social media and in local spaces. Your neighbors and mutuals can be a great source of potential clients.
Before the visit: Prepare the property
Once you have the business plan, the money, the real estate know-how, and the clients, there’s only one thing left: the first vacation visit from a customer!
- Spruce up the space by changing the wall colors to impact mood or by opening windows to let in light and fresh air.
- For main pieces, stick to neutrals so as to appeal to a wider range of potential guests.
- Add warm touches like small houseplants or artistic wall pieces to give the space some personality without overdoing it.
What are you waiting for? Your vacation rental business awaits! Once you have all of these first steps taken care of, it’s a matter of elbow grease, time, and strategic planning. Good luck!
Please contact Broker Donna Bulika to enquire about vacation rental properties in Ontario and to book your private consultation by filling the form below or calling/texting at 416-797-6226, or email firstname.lastname@example.org
Photo by Julius Silver from Pexels