STEP 1: Research and Understand
the Vacation Rental Market

Additionally, the data from Airbnb doesn't take into account factors such as local zoning laws, competition from other short-term rental platforms, or seasonal fluctuations in demand.

As a result, you could find your property is not generating as much income as you had hoped because you missed other sources of data or factors that could impact the market for rentals in the area. 
There could actually be a high demand for a variety of other types of short-term rental properties, and you would need to adjust your pricing strategy to better meet the needs of their target customers.

The review section is important because in areas where there is a density of accommodation, you may have to search hard to find out what makes one place stand out over the rest.

Your job, of course, is to be so much better than your competition.

Here’s a couple of examples that show it doesn’t take much to create a sought-after property.

The owner of this condo in Destin has over 100 reviews and most of them mention the beach gear and wagon to take it there.

Other condos in the same building and nearby, mentioned that chairs and umbrellas were available to rent on the beach, at an additional cost.   Their reviews were also 5-star but didn’t have the enthusiastic response of the one that provided those little extras.

In this case, you’d add chairs, umbrella, towels, cooler, and a wagon/cart to your spreadsheet in the column on reviews.

It’s not hard to imagine how a family with small children would enjoy having those things provided…particularly the wagon.

In different locations, other amenities may be cited as important.  For example, I’ve stayed at a couple of properties on visits to Costa Rica.  I’ve chosen them based on the reviews that mentioned safety, ease of access to the property and 24-hour connection with the property manager if necessary.

While all the places I looked at mentioned the wildlife, the range of activities on offer, and had photos of the swimming pool and spectacular views, a new visitor to a country wants to feel secure and not have to worry about getting into the place or finding someone to fix a problem.

Reviews are a goldmine of information on what makes guests happy….and in some cases, deeply unhappy!  

Set aside a good amount of time to scroll through as many reviews as you can, making notes on all the ones that cite specifics that made the stay special.

Earlier I talked about Marthasville, Missouri, and Midland, Texas – both relatively obscure places you may not have on your bucket list.

But…each in their own way attracts inbound travelers.  Not necessarily tourists as is the case in Midland where business travelers are more likely to snag the smaller properties.

Sue Allen is the founder of East Ruston Cottages in Norfolk, on the east coast of England.  It’s a very dog-friendly area, with many restaurants, cafes, and tourist attractions accepting pets.

The area has many beaches where dogs are welcome to run free.  

Sue knew that travelers would come to her part of the country, specifically because their pets could run along the beach, sit beside them in a pub garden, and be accepted in many of the places they wanted to visit. 

This prompted her to create a company that only rented properties that would accept multiple dogs.

It’s a hugely successful niche that would not have worked as well in other parts of the country where there are more restrictive policies.

VRS416 – How to Really Welcome Pets and Not Just Tolerate Them

The nature of the inbound market could certainly define the type of property that is going to do the best in your location, and your research on existing data is likely to back that up.

Some locations may give year-round occupancy potential, while others will have seasonal variations.

However, what may have been standard in the past is open to change, and the last few years have shown seasons widening, and the potential for low & shoulder period occupancy to rise.

Savvy operators are seeking out reasons for people to visit they may not have considered, and this is creating marketing opportunities where none existed before.

When we started our property management company in Ontario, we were told it was a two-month market.  July and August would be the only times to expect near 100% occupancy.

Traditionally, visiting what is known as ‘cottage country’ in the summer was a rite of passage for the domestic market i.e. the majority of guests coming out of the southern cities including Toronto.