Singapore over the years has established itself as a fast-growing country. Along with its economic growth, its tourism industry has boomed thanks to an abundance of popular destinations and landmarks in the metropolis, hitting a record high of 16.4m tourists in 2016. With visitors continuously flocking to Singapore, it is no wonder vacation rentals are also becoming a trend in the country.
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Data from Statista shows that the vacation rental industry in the country amounts to US$136m in 2017, with the average revenue per user totaling to US$400.96. User penetration is also expected to reach 11.0% in 2021 from 7.0% this year.
As more and more players are joining the short term rental game in Singapore, the competition is becoming stiffer, and home owners like you are only expected to up their game. That said, here are some tips on how you can step up your game and increase your properties’ potential for profitability.
Assess & eliminate potential risks
As with any other business, the vacation rental trade is also prone to risks that may cause profit loss. Take time to research on the possible causes and provide a measure to mitigate these risks. Choosing the right destination, determining market supplies and identifying market price points are some of the steps to eliminate accommodation rental risks according to this article.
Present vacation home as if your own
Try to put yourself in your guests’ shoes. Would you like to sleep in beds crawling with bedbugs? Would you feel at home sitting on a dusty and creaking sofa? Or would you survive a day without being connected to the net? No one would enjoy an uninhabitable “habitat”, so it is your duty as a property owner to create a hospitable environment for your guests. Take the extra measure and exceed their expectations with simple gestures like keeping the propane tank full or the bed sheets clean and make your property their home away from home.
Prioritize security
The return of investing in a reliable security system is pretty obvious but is often neglected by home owners. You might not consider installing a security at home but for vacation homes, it is a must if you want to attract more visitors. In a 2016 survey, peace of mind remains the biggest driver for installing a home security system. The survey shows 93% of the American respondents said they want a security system that would alert the authorities, indicating they prefer professionally monitored security system over self-monitored ones.
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Maintain cleanliness
A clean home attracts more visitors. This is another given method where property owners fall short. A stainless bath tub and toilet would make a big difference compared to a nasty bathroom. Cobweb-free ceiling fans and other appliances and furniture would bring in more profit for you, so it is important that you maintain cleanliness for each guest. If you can’t afford to clean your vacation rentals, there are professional third-party cleaning services available in Singapore that can do the work for you.
Promote your vacation home online
Build a professional website, establish your presence in social media and enlist online listing sites. Make use of the internet and get your brand known. Having your own website and establishing your presence online should help build your reputation and increase your potential guests’ trust. The more you are trusted, the more the visitors will convert and bring more profits to your business.
Take note of customer feedback
Make use of customer reviews to further improve your offerings. Maintain the positive feedback and work on the negative comments of your customers. Follow up on visitors who did not leave a review by sending a thank you email and ask for suggestions on how you can improve your service.
Vacation rentals are indeed booming in Singapore. With the steady growth of the country’s tourism industry, the vacation rental businesses can see a bright future ahead. If you are planning to venture in this trade, make sure you take the necessary preparations and heed our advice above to stay on top of your game.
References:
https://www.statista.com/outlook/268/124/vacation-rentals/singapore#takeaway
http://www.straitstimes.com/singapore/tourists-spent-record-248b-in-singapore-in-2016-arrivals-also-hit-record-high-of-164m
https://www.flipkey.com/blog/2015/07/07/6-tips-to-run-your-vacation-rental-like-a-successful-small-business/
http://www.bricrental.com/tips-to-make-your-vacation-rental-more-appealing.htm
https://www.vacationrentalpartners.co/marketing-tips/tips-for-a-profitable-vacation-rental-marketing-plan/
http://www.cottageblogger.com/10-mistakes-vrbos-often-make-5-will-kill-your-business-before-it-gets-started/
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