October 15th 2019
Often it starts with the desire to acquire a vacation property. Somewhere special to you.
It may be along the shores of Lake Erie, Sherkston perhaps or Crystal Beach, it may be farther afield, P.E.I. or even Mexico. You travel, you search until you find the perfect place. And you buy it. 
But like most of us, if you are still working and busy with all the demands of life, you find that you don’t have a lot of time to enjoy that magical getaway. Maybe a couple of weeks here and there. And the rest of the time it sits idle. Seems a waste.
Then you come up with an idea. Why not rent it when you’re not using it personally. After all, if you love it, surely other people will too. And suddenly a real estate investment has opened up for you. In some cases a very lucrative one.
Here’s basically how it works. There are a number of vacation rental sites on the internet. AirBnB is probably the most well known and widely used. Go to one of these sites and begin your search. Find out what the demand is like for the hideaway you have and at that location. What are rental prices like?
Essentially what you are venturing into is the hotel business. People from all over will be looking for, booking and traveling to your property. In all probability they will be staying for a few days (you can require a minimum stay on your booking site, i.e. 3 or 4 days). It will be a vacation for them. And, depending on what you have to offer and where it is located, you may be charging $200, $300 or more per night.
Now, with those kind of numbers you may want to rush out and get into the short-term rental business, but before you do, you need to realize there are offsetting costs to consider and an infrastructure to be put in place. You will need, for example, someone to clean the property, wash and change the bedding and towels. This will need to be done in the 3 or 4 hour window between one guest departing and the next one arriving. You will also need someone to maintain the grounds (unless what you are renting out is a condo) and in the case of property not close to where you live you will need someone nearby who can step in in case maintenance issues arise.
It sounds like a lot, and it is, but once it is set up, systems in place, it should run very well without a lot of involvement on your part. And as a bonus, these systems such as AirBnB have provisions in place for a clean-up charge billed to the visitor. People using these services are used to and expect this added fee, often in the $100-$200 range. There is also a security deposit put up by the guest and returned once the property has been inspected after their stay.
At the end of the stay, guests are requested to post a review of their experience. These reviews are posted on your site and can help or hinder future business. Great reviews go a long way in helping boost your ranking with the company. And you, as the host, are also encouraged to write a review about your experience with the guest. Did they look after the place? Were they courteous and thoughtful? Would you recommend them? As a lodge provider it helps if people registering a stay can be checked by you first. These reviews make that possible.
As far as costs are concerned, sites like AirBnB get most of their revenue from the guest. The charge to you is nominal, usually in the 3% - 4% range. And booking is a breeze. When a person searches for a holiday and your property comes to their attention, along with the pictures and description, a calendar will appear with available dates and those already booked. Each day shows the per diem charge. You may for example charge more on weekends, certain times of the year or around special events. The guest simply books the dates they want and pays up front.
And, of course, one of the best parts is that you have the option of selecting the times you want to use the property yourself and blocking those dates off. They say you can’t have your cake and eat it too, but with this type of vacation property you can. It’s a rental – yes. It’s a revenue stream – yes. But it’s also still available to you to enjoy as your own personal getaway.
Wayne Quirk, Author
“THE MONEY MACHINE”
wayneq@remax-gc.com