Things Break - Lodging Newsletter February 28, 2022

By Wm, May
Published: 02/28/22 Topics: Lodging Newsletter Comments: 0

The surge of people purchasing second homes for their families continues and many are counting on vacation rental income they can earn. But becoming a Vacation Rental landlord is not for everyone.

Our methods of qualifying, educating, contracting, monitoring and serving guests go far in controlling the behavior of guests.

In the industry, the incidence of extensive damage in homes is rare and the occurrence of theft is virtually unheard of.

On the other hand, having people live in a home - whether the owner's family as full time residents, or renting to tenants long term (perhaps on an annual basis), or allowing guests to stay on a short-term basis (what are now called vacation rentals) - does subject the home to usual wear and tear.

Even with the most well-behaved, conscientious guests, homes may incur scuffs on the wall, broken glasses, lost flatware and other issues. So techniques are used to offset those costs.

When Visa/MasterCard objected to damages (or corresponding deposits) being charged on credit cards, the industry invented the "Accidental Damage Protection" (ADP) that pools small fees charged to guests to offset minor costs. Some advertising websites also offer such coverage.

Should significant damage take place, homes should have property insurance designed for short-term renting. That will kick in to restore the home for damages greater than the ADP.

Even with the cost of damage removed, however, there are other conditions every property owner should consider when becoming a vacation rental landlord. This newsletter discusses some of them.

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Issues that arise with vacation rental homes are rare, but they can be upsetting to new owners unaware of them when they begin. Here are a few to think about:

Wear and Tear - Even if you lived in the home full-time, scuffs will appear on walls. Hardwood floors can get scratched, light bulbs wear out, and dishes get broken.

Replaceables - Things break and not necessarily by guests. Be prepared for replacing kitchen and tableware pieces, towels and linens. Even when still serviceable, allowing amenities to age results in negative reviews and lost income. Be prepared to replace them regularly.

Upgrades - Sorry, but towels, linens, mattresses, sofas, chairs and even electronics do not last forever. Depending on age, be prepared to upgrade and improve furniture and furnishings to maintain guest satisfaction and, therefore, maximum income.

Cleanliness - Housekeepers are diligent but all homes differ, have "eccentricities", and some are very large. Out-cleans are thorough and done within a limited time frame, because new guests are likely arriving soon. Should something be missed, call us quick to fix.

Deep Cleans - While out-cleans cover guest cleaning, even your primary home needs a thorough deep clean twice a year. Be prepared for that cost and enjoy having a home that is well maintained.

Pet Friendly - Allowing dogs (never any other animal type) will increase income significantly. If you bring your own dog, it would be unwise to advertise the home as not dog-friendly.

Vendors - Whether for gardening, snow removal or other services, some vendors may make mistakes, fail to show up, or raise costs. Be prepared to have that reflect on your property.

Neighbors - No matter how well guests behave, be prepared for neighbors anxious to peg you as a out-of-towner capitalist. They will manufacture complaints and scream to regulators.

Regulators - When city or county officials in your area begin to add regulations or even prohibitions, be prepared to invest time and money to defend your property rights. You will need to attend hearings and lobby representatives.

Online Reviews - Now that every person is a "reporter", expect that most guests will love your well-outfitted, nicely-maintained and professionally-managed home. However, don't be surprised if a guest invents a complaint to extort a free stay.

Weather - Most rental homes are in recreational areas where snow, rain, flooding, wind and other events can cause cancellations and even delay housekeeping and maintenance. Be prepared for that.

Management - When issues arise, it may seem convenient to blame someone. But keep in mind, managers are also negatively impacted by the need to maintain homes in good condition. Working calmly and collaboratively retains the motivated people you need available 24-7-365.

Most owners seldom have issues, and when they do, those should be small. In the end, being a landlord is the only way to enjoy vacation renting and profiting from it. Expect the best, but be prepared for anything.

Author: Wm, May, Vortex VIP
Blog #: 0907 – 02/28/22

Sponsor: Vortex VIP – – VortexVIP.com