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5 Misconceptions about Starting a Vacation Rental

5 Misconceptions about Starting a Vacation Rental

Just like any other business, industry, or profession, there are always assumptions, generalizations, and truths untold due to misunderstandings or incidents that have occurred once and have gone viral over social media. Sadly, the vacation rental industry is just the same and is subject to these myths.

More so, these myths or misconceptions bring fear to the ones who would want to invest or start this lucrative business stopping them from moving forward while giving unrealistic expectations. Contrary to what is believed, below are some of the biggest myths you might have heard of in the vacation rental industry.

5 Biggest Myths about the Vacation Rental Industry

1. Vacation rentals are harmful to the economy and the community

As vacation rentals emerge, it is expected for neighbors and anti-vacation rental associations to emerge as they come to believe that it is damaging the economic and local neighborhoods which have demonstrated in Hawaii, whereas of August 2019, the number of vacation rentals has been reduced.

But truth be told, tourists who stay at vacation rentals are contributing to the local economy as they spend money on shopping, restaurants, and bars in the local areas. If you think about it, short-term rentals have their advantages such as an increase in tourism activity, positive economic impact, missed tax revenues, and more. Furthermore, a study in San Diego showed that tourists who stayed at short-term rentals spent $86.4 million in their leisure time. What does that say? Nevertheless, to what is believed, without vacation rentals, local companies would not be able to benefit from tourism.

2. Guests will never want to leave!

Guests will never want to leave!

One of the biggest misconceptions and fears of starting a vacation rental is that guests will not want to leave the premises at all. However, keep in mind, travelers ideally have a limited number of days for their vacation.

Additionally, most vacation rentals abide by the short-term laws and regulations ensuring that all guests stay within the law. And if you want to avoid such situations, one significant way is for hosts to screen for bad guests before their reservation. In addition, when vetting guests, it is highly suggested to check out Airbnb guest reviews that are usually visible and displayed on their public profile.

3. No one responds to the guest’s issues

Vacation rental owners act just the same as a hotel manager does, maybe even more. Take note, not only does a vacation rental owner respond to guests’ problems but they also solve and improve their stay by offering recommendations, welcome books, and gifts enhancing the overall guest experience. More so, they take the extra mile to ensure guests have a comfortable and enjoyable stay resulting in a closer relationship between the host and the guest.

4. You may not get paid!

There are several security features such as refund and cancellation policies that protect both hosts and guests. More so, it is always recommended to only accept payments through short-rental platforms as it prevents unnecessary risks that come along when paid outside the system.

Ideally, when a guest makes a reservation, the payments are made through the short-term rental platform and then are transferred to the host twenty-four hours after the guest checked in.

5. Vacation rentals aren’t safe as hotels

Vacation rentals aren’t safe as hotels

Think about it, hotels are just like any large chain store that often provides guests with security- CCTV, front desk, staff uniforms, etc. Although, it may seem unknown businesses like vacation rentals give a sense of doubt to tourists, reassure you that vacation rentals can offer guests a strong sense of security just as hotels.

Take note, many vacation rentals have formal agreements specifying host obligations to the guests, protecting the owner, the property, and insurance. More so, vacation rentals listed on Airbnb specifies that the safety of the guest is of the utmost importance providing smoke and carbon monoxide alarms to hosts listing on their site.

Bottom Line

An old saying goes ‘don’t judge a book by its cover’. So, not everything you hear about vacation rentals is true.

It is important to first research and plan carefully before starting a vacation rental business. Know the in and outs as it allows you to open many opportunities in this business.

Ready to find out how Hostaway can transform your business?

Hostaway is proud to support thousands of Property Managers and Airbnb Hosts Around the world. We take pride in being Top Ranked in Vacation Rental Software Review Sites: Capterra, G2, Software Advice, Trust Pilot, to name just a few! Check out our reviews and read the Hostaway Case Studies from real successful and growing Short-Term Rental Managers!