You’re only going to get out, what you give into your vacation rental investment property. If you sow sparingly into your property you will reap sparingly. How much do you want to reap? It’s imperative that owners invest in marketing their vacation rental properties.
How Much to Invest in Marketing a Vacation Rental Investment Property?
According to Coldwell Banker’s real estate suggestions a vacation rental home owner should invest approx 10% of their target monetary goal in their advertising. For example if you’re looking to generate $30,000.00 in rental revenue you should consider investing $3000 in marketing.
If this sounds like a lot, take into consideration that a booking agent may charge 15 to 35% (depending on the agency) for booking your property on your behalf. In the future you may be able to reduce the marketing investment as you develop return business and an established history in the vacation rental market.
How Much To Invest In Marketing If I Want To Improve My Current Marketing Results?
If you’ve been marketing your vacation rental and its just not bringing in enough bookings, it’s highly probable you’re not investing enough in marketing your property. I know that’s the last thing owners and investors want to hear but its the first thing that needs to be addressed. The saying it takes money to make money is true in any business and the vacation rental market isn’t exempt.
Advertising and marketing statistically offer the best return on investment, this is why you’ve got to get your marketing right. Your vacation rental marketing investment is directly related with the return on your investment property.
I suggest you break out the books and see how much income your vacation rental investment is bringing in . Also take a look at your current vacation rental marketing budget and see if it lines up with the recommendations made by Coldwell Banker. If your marketing budget doesn’t line up you’re likely not maximizing your rental return.
The good news is, you can adjust your marketing budget and correct your investment returns, just don’t wait until its too late to correct. You first need to know what the income potential of your vacation rental is. Once you’ve done the market research you can set up a realistic monetary goal and then correct your budget and consequently your marketing.
For example if you’ve set up a realistic goal to make $100,000 annually in bookings and your only earning 60,000.00 you should consider reinvesting an additional $4,000.00 to make the additional $40,000.00 in bookings.
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