Ten mistakes you should avoid when renting out your holiday home
Most common mistakes when renting your holiday property
- Avoid mistakes when renting: quality furniture and clear standards are key.
- Comply with laws and ensure sound financial management.
- Fair prices and clear communication for a successful experience.
- Optimise your holiday rental with practical strategies.
Renting out holiday accommodation can be quite daunting for hosts. After all, people you don’t know will be staying there. So, here we lay out the most common mistakes made by holiday rental hosts. The aim is to steer clear of them at all costs to avoid problems and safeguard your property.
The information we’re sharing here will be greatly beneficial for everyone, whether you’re just starting to offer your home as a holiday rental or you’ve been doing it for months or years because it’s easy to fall into one of these mistakes. The goal is to manage your holiday rental well, increase rental demand, and keep your guests satisfied.
The ten most common mistakes when renting out your holiday home
Furnishing the home with low-quality furniture
Many hosts opt for low-quality furniture for cost-saving reasons. However, the difference between cheap and good quality furniture is considerable, and the guests notice it. With cheap furniture, you might achieve a nice-looking flat, but not a comfortable one, at least not in the long run. And in the end, buying quality furniture is an investment because it will be better and more durable.
Setting an inappropriate price
Every home has its own value, and by extension, a different price. You need to consider the size of the house, the location, the amenities, the furniture… Only then, set a fair price for it. It shouldn’t be higher than it deserves, as with so much competition, guests might choose better options for a lower cost. But it shouldn’t be below its value either.
Not paying the corresponding taxes
If you don’t want to have problems with holiday rentals, we advise you to register your home as one to avoid future fines. From the first day you rent out your home, it must be registered. It must also have a certificate of habitability and be furnished. Taxes are paid based on the number of days you’ve rented out the property as a holiday home.
Not fixing damages
On a holiday rental website, there are plenty of homes accompanied by photographs. Generally, damages are not shown, so when tenants arrive at the flat and detect them, they don’t get a good impression of the house or the host. This practice is considered unethical. Damages should be repaired as soon as possible.
Not having home insurance
In these cases, it’s highly advisable to have one. Nothing necessarily has to happen, but you’ll gain peace of mind. If an incident occurs, the insurance will cover the expenses. With guests changing so frequently, the likelihood of something happening is higher. However, note that some insurances exclude short-term rentals. We recommend opting for specific holiday rental insurance.
Not informing the neighbours that I’m going to rent out my holiday home
As neighbours, they have the right to know this information. Not everyone will like your decision, but you are free and entitled to use your home as you wish. Eventually, they will get used to this practice, especially if your guests are courteous. And in the event of an incident, your neighbours might be able to help you.
Not establishing written rules for guests
We’ll talk more about this later. They are necessary in any holiday home. Since you have to follow rules everywhere you go, whether it’s in a hotel, university, or on a bus, the same goes for holiday rentals. Plus, it’s a way to ensure that your tenants behave civically.
Not drafting holiday rental contracts
The holiday rental contract is a way to ensure the commitment your guests have to you and the home. And a way to validate that they agree with its terms and conditions. It’s better to opt for friendly rather than legal language to avoid doubts about what they’re signing. This contract should include the entry and exit dates, rates, and other relevant information.
Neglecting your guests
The great advantage of hotels is that guests always have someone available for any situation that may arise. This doesn’t happen in all holiday rentals, and it’s a big mistake because if something happens, the guests will have to deal with it themselves, which can even be detrimental to you, especially financially. This can range from fixing a broken appliance to a power outage.
Not knowing your guests’ profile
To provide the best experience to your customers, you need to know your guests. At least their profile, as depending on one or the other, they will have different needs and interests. And you can use this information to your advantage, to improve their stay and that of future guests. It’s best to create statistics of your tenants to see what kind of people are most interested in your holiday rental.
Establishing house rules
Just like in hotels, you should establish some house rules for the holiday rental. That’s right, holiday homes should also set their boundaries. Here are some basic rules that every home should implement:
- Respect the previously indicated number of people who will be staying in the holiday rental.
- Adhere to the entry and exit times of the home.
- Do not disturb the neighbours.
- Do not make modifications to the home.
- Do not be noisy at night.
- Do not bring pets without the host’s permission.
- Be careful with the furniture and the home.
- Pay the agreed-upon price if it hasn’t been done yet.
- Do not smoke if it’s prohibited.
- Report any incidents to the host as soon as possible.
These are basic rules of coexistence with the building’s neighbours, but they are also respectful of the home itself. When guests leave your home, it should be in the same condition as it was upon arrival. However, it’s also important to be understanding and realise that some things wear out with use and time.
Tips for rectifying mistakes
Holidu advises you to review these mistakes and, if you’ve identified any, rectify them as soon as possible. Prices should be set based on the conditions and characteristics of the home. Communication with guests should always be clear to avoid misunderstandings. And finally, it’s advisable to opt for transparency in the information.
By advertising a holiday home, you’ll gain customers if you avoid these kinds of mistakes. Take advantage of all the useful information we’ve just provided, go to the holiday rental website, and clearly set out the conditions of the flat and the services you offer. This will allow you to keep your home and your income safe. And guests will know that their host is a serious person.