How Your Vacation Property Can Generate Rental Income

Oct 05 2023

Get tips on how to use Hostfully to optimize your vacation rental business and make more profit.


What’s in this article?

The vacation rental industry is booming, and many homeowners are taking advantage of this lucrative opportunity. Whether you own a beachfront cottage, a stylish city apartment, or a cozy countryside second home, your property is a valuable asset that can generate significant income.

However, generating rental income and running a successful vacation rental business requires careful planning and execution. In this article, we will explore various strategies and tools to soar on those Airbnb profits and bring in that sweet Vrbo chateau dough.

In this article, we’ll cover:

  • What renters want in vacation rental properties
  • Putting vacation rental property management systems to work
  • Marketing short-term rental properties
  • Enticing potential guests with reviews
  • Other vacation rental property revenue streams
  • FAQs

What renters want in vacation rental properties

Whether you have a second home and are looking to set up a first-time Airbnb listing, you’re curious about investment properties, or you’re scaling your vacation rental property business, there are a few crucial criteria to keep top of mind. And it starts with who you’re serving: potential vacation home renters.

Here’s some food for short-term rental thought:

Location, location, location

As any homeowner knows, the first rule of real estate investing is location. So when it comes to attracting potential guests and maximizing your vacation home profits—you guessed it—location is key.

Consider the unique features and attractions of your property’s surroundings. Is it located near popular tourist destinations, stunning year-round landscapes, or vibrant cultural hubs? Even if you already own a property, and are worried your location won’t appeal to renters, highlighting the positive aspects in your marketing materials can help you stand out from the competition and entice potential guests.

For example, a rental home near the highway might be the perfect location for guests seeking convenience and access. A bare-bones bungalow in the woods might appeal to those on the hunt for peace, seclusion, and a Wi-Fi-free stay.

Sweet amenities, comfortable furnishings

In today’s competitive rental market, guests expect more than just a place to stay. Think about what sets your vacation property apart from others and emphasize those features, such as:

  • Appealing amenities: Do you have a private pool, a fully equipped kitchen, a well-equipped bonus office with stellar Wi-Fi, or a spacious outdoor patio? These amenities can greatly enhance the guest experience and make your rental more desirable.
  • Thoughtful design and inviting furnishings: Guests are often willing to pay a premium for a beautifully designed and well-furnished vacation home. Paying attention to small details such as comfortable bedding and furniture, and thoughtful decorations, can go a long way in creating a memorable stay for your guests.
  • Smart devices: Installing smart devices such as keyless entry systems, smart thermostats, and security cameras can enhance the guest experience, make check-ins/check-outs a breeze, and help to streamline your operations.

A+ customer service

In addition to the physical aspects of your vacation property, and perhaps most importantly, providing exceptional customer service is crucial for success in the vacation rental industry. Promptly responding to inquiries, addressing renters’ concerns, and going above and beyond to ensure a positive experience can lead to repeat bookings and positive reviews.

Consider implementing a guest communication system that allows for streamlined, easy, and efficient communication with your guests throughout their stay…which leads us to: a property management system.

Putting vacation rental property management systems to work

An efficient property management system (PMS) can be a game-changer for your vacation rental business. These software solutions can automate many tasks from sending booking confirmations to providing check-in instructions, help streamline your operations, centralize your OTAs to prohibit double bookings, save you time, increase your productivity, and provide a seamless guest experience.

Centralized calendar syncing

The ability to integrate with popular vacation rental platforms like Airbnb, Vrbo, and is also essential for maximizing your exposure and bookings—and can be a worthwhile return on investment.

A reliable property management system also offers calendar syncing, which means that any changes made to your availability on one platform will automatically reflect on all connected platforms. This eliminates the risk of double bookings and ensures that your calendar is always up to date.

Guest communications

When it comes to guest communications, a property management system’s automation capabilities can save valuable time and ensure that your guests receive timely and personalized messages. The PMS can handle it all, from pre-arrival check-in instructions to post-stay feedback requests, leaving you free to focus on other important aspects of your business.

With an intuitive interface, you can easily view and manage all your short-term rental bookings and vacancies in one place. The PMS can handle renters’ reservation requests, send out booking confirmations, and even process payments, making the entire booking process seamless and hassle-free.

Streamlined integrations

The ability of a property management system to integrate with popular OTAs like Airbnb and Vrbo is crucial for a vacation property business’s success. By connecting your PMS to these platforms, you can effortlessly manage your listings, synchronize rates and availability, and even receive direct bookings from these platforms.

Moreover, integrations with other essential tools such as accounting software, channel managers, and online payment gateways can further streamline your vacation rental business operations. Imagine having all your financial data automatically synced with your accounting software, or being able to manage multiple distribution channels from a single dashboard with a custom tech stack.

A solid PMS will also provide dynamic pricing integrations that analyze demand, competition, occupancy rates, and market trends to automatically optimize your nightly rates in real-time. This ensures that you are always charging a reasonable price for maximum profitability.

By investing in a property management system, you can save valuable time, reduce the risk of errors, maximize your revenue, minimize staffing hires, and scale your short-term rental business.

Marketing short-term rental properties

Your vacation rental business is only as successful as your marketing efforts. Utilizing various online platforms and social media channels with high-quality photos, engaging descriptions, and positive guest reviews can all contribute to attracting potential guests and increasing your occupancy rate. Here are some marketing strategies to consider:

  • Short-term rental reach: Utilize listing sites like Airbnb, Vrbo, and to reach a broader audience. Invest time in creating eye-catching listings that highlight the unique features of your property.
  • Vacation home digital guidebooks: Besides reach, homeowners and property managers can consider creating customized digital guidebooks to brand their business and to it to the next level. Guidebooks can also help short-term rental companies scale their businesses by giving potential guests a robust, professional resource with custom itineraries, and minimizing the time the team spends building out listings.
  • Social media marketing: Leverage the power of free social media platforms like Facebook and Instagram to showcase your short-term rental. Share high-quality photos, engaging captions, and encourage your guests to tag your property in their posts.
This is an example of one of Hostfully's beautiful guidebooks where you can upsell services.
Mid-stay clean, bottle of wine, breakfast package anyone? Add some easy upsells and offer your guests an even better stay with a custom digital guidebook. Sources: Hostfully and Take Me To Myrtle Beach Vacation Rentals

Enticing potential guests with reviews

Guest reviews play a significant role in attracting new bookings. Positive reviews provide social proof and build trust among potential guests. Here are some tips to maximize the impact of guest reviews:

  • Prompt review requests: After a guest’s stay, send them a personalized message thanking them for choosing your property and kindly ask for a review.
  • Respond to reviews: Show your guests that you value their feedback by responding to their reviews. Address any concerns they may have raised and express gratitude for their positive comments. This demonstrates your commitment to providing a memorable experience.
  • Highlight positive reviews: Incorporate positive guest reviews into your marketing materials. Feature them on your vacation home website, in social media posts, and in your listings. This showcases the positive experiences of previous guests and encourages potential guests to book.

Other vacation rental property revenue streams

To further increase your vacation rental income, consider exploring additional revenue streams:

  • Add-on services: Offer additional services such as airport transfers, grocery delivery, or cleaning services at an extra cost. These upsell services can provide convenience to your guests while generating additional income for your business. You can even charge extra for early check-ins (or late check-outs) which requires little to nothing of your team and meets a common guest demand. Passive income for the win!
  • Integration partners: Leverage integrationtools like Viator which sources the internet for local tours and events and then promotes those to guests during bookings. When renters book those offerings, you benefit by receiving a commission.
  • Long-term rentals: If your property is vacant during certain months, consider offering long-term stays (at weekly or monthly rates) instead of short-term rentals (at nightly rates). This can be an attractive option for renters looking to stay for an extended period and can provide a stable income stream during slower seasons.

Real estate investments can be a lot of work, but with these strategies and tools, you can maximize the profitability of your vacation rental business. Stay focused, adapt to market dips and trends, and always strive to exceed your guests’ expectations. The rental income will follow!


Here are some common questions that homeowners and property managers have when it comes to making money with a vacation rental business:

How can I determine the optimal rental rate for my vacation rental property?

Use sites like AirDNA And Key Data Dashboard to research similar Airbnb, Vrbo, and properties in your area and analyze their rental rates. Consider factors like location, amenities, and demand during peak season. You can also consult with property management companies or vacation rental homeowners and experts for guidance.

How can I simultaneously manage guest inquiries and bookings on Airbnb and Vrbo?

Implementing a guest communication system can help you manage inquiries and bookings efficiently. Set up automated responses to common questions and utilize a centralized platform to track and respond to guest messages and prevent double bookings.

What should I do if I receive a negative review?

Even the best property managers don’t always get glowing reviews. Take negative reviews as an opportunity to improve. Respond promptly and professionally, addressing the guest’s concerns. Offer resolutions or compensate for any issues renters experience. Show potential guests that you are committed to providing an exceptional experience.