We report the article by Elena Nacci that talks about us on the blog Dotflorence.
Is it possible to make good money on Airbnb short term rentals and maybe make a business out of it?
The short-term rental market in Italy continues to show positive profits, and this despite the offer of tourist apartments is recording record numbers throughout the country! We are witnessing a real boom in tourist rentals, and of course Florence is no exception.
Tourist apartments are a safe source of income for the owner, who will always be in possession of his property and can count on certain earnings, against those potentially risky arising from tenants who are renting for too long periods.
Airbnb Tourist Rentals, a market of over 5 billion Euros!
Italy is at the top among the countries that have recorded the greatest economic benefits (over 5 billion euros in 2018 alone!) thanks to the tourist flows generated by Airbnb, share economy giant and now at the top of the major online platforms together with Booking.
But is it really possible to make great profits from short rentals and manage rentals successfully? In order to achieve high-level performance and thus guarantee the owners an income that is constant over time, all the work of managing the apartments must be set up with the highest quality and professionalism.
On the one hand, the extra-hotel tourism sector is expanding and becoming stronger and, on the other, every single apartment is increasingly struggling to maintain its high performance; this is due to an imbalance between supply and demand. That is why the role of highly professional management becomes fundamental.
All phases relating to the management of tourist accommodation must be carried out in a professional manner; before, during, and after the stay of travelers. This is a full-time job, which requires a lot of attention and specific skills.
It is important to point out, however, that the income from an apartment intended for short-term rentals will also depend on objective factors, which are independent of the quality of the management work. The location of the property will have a fundamental role, as well as its size and the number of guests that the accommodation will be able to accommodate, and also the fact of enjoying intrinsic properties, such as, for example, a terrace with views, a garden, frescoed ceilings, or elements of historical value.
7 Valuable Tips to Increase Revenue from Short Rentals
That said, here is a list of tips or key points to focus on in order to maximize the profits from managing tourist rentals, all of which will surely affect the income.
1) Original and unique apartments
The password is to customize! In setting up an apartment for tourist rentals, the furniture will have to be studied ad hoc; there are many announcements of new apartments, modern, beautiful and light and relaxing, but cold and impersonal.
To be really competitive and be noticed among thousands of online ads, the accommodation will really have to differentiate from the “mass”, be unique and particular, so as to offer an unconventional stay, which is remembered as related to the local experience. It will therefore be important to customize the decor and style of the house, creating unique features.
For example, an idea for an apartment in Florence could be to create the House of Portraits; just think of the beautiful portraits of the Medici family on display at the Uffizi!
You can embellish the walls with beautiful portraits, opt for a modern style but in harmonious contrast with furniture and antiques of timeless charm; and for fabrics opt for colors such as blue or golden that we find in the Hall of Lilies in Palazzo Vecchio.
2) Beautiful and emotional photos
A picture is worth a thousand words! the photo of the ad is the first thing that attracts the attention of the user; it is on it that the eye immediately falls, even before the price or location of the apartment.
Professional, beautiful, and emotional photos will definitely get a better ranking in search results and can affect user decision making. The photos must also tell the “story” of the apartment, be able to convey an emotion, and at the same time be corresponding to reality.
3) Management of online ads
Professional photos will be the basis for creating attractive ads on major OTAs. The descriptions and all information relating to the apartment must be truthful and not hide any “weaknesses” of the accommodation, to avoid receiving negative reviews afterwards.
In the management of the announcement it will be fundamental the rate of answer in order to increase the visibility in the algorithm, it is fundamental to answer very fast, if not in real time! It is also very important to pay attention to the needs of your guests, h24.
It is a job that requires a lot of time and patience, as it consists in responding immediately and comprehensively to all the requests or questions that will be asked. Work that will be rewarded by excellent reviews, which will be a key lever to increase the visibility of your ad.
4) Revenue Management and Dynamic Tariffs
The professional management of the calendar and rates in a dynamic way is a key element to be able to really maximize the revenue of a tourist accommodation, be it a hotel or a tourist apartment.
Many ads still use the flat rate, which means they set the same price throughout the year, regardless of the season, events or holidays.
Rates must be competitive and vary according to a whole series of factors and mathematical data, resulting from a careful pricing analysis.
Surely one of the most complex aspects in the work of managing tourist rentals as it will depend on the good return on income.
5) Providing the services of a hotel and the warmth of a home
Today an apartment for tourist use can not do without services such as wi-fi, smart tv, Netflix, air conditioning, courtesy line quality, clean and impeccable linen, beds always well made! Comfortable and quality sofas and mattresses will have their importance.
To this you can add a fully equipped kitchen with everything you need!
Wine and chocolates, accompanied by a personalized ticket from the host will be a gesture appreciated. All this will help to generate 5 star reviews!
6) A special welcome
When it comes time to welcome our guests, the check-in phase, it will be important, first of all, to understand who you are in front of. Those who will welcome guests must also be a little “psychologist”; after a long journey often those who arrive are tired and want a quick check-in.
Other times, however, guests will want to socialize, and know everything about the apartment and the city, and maybe even something of the personal life of those who welcome them. In some cases, you can establish relationships of sincere friendship, and both the host and the guest can live an experience of personal enrichment, beyond the economic side.
Many will tell you to always delegate the check in, wrong! if the traveler is pleased to know the host with whom he may have exchanged many messages before arrival, to meet live the face of who is behind the profile photo on online portals, then get to know him!
7) Knowledge of legislation
Last but not least is to know the rules and regulations that govern the tourist rental industry, which is constantly evolving. It is essential to be aware of the regional rules and requirements, such as the communication of guest data at the police station and the tourist tax.