Like many other sectors, the vacation rental biz was heavily hit by the pandemic and the way it dramatically changed so many aspects of life in general. However, Airbnb and other rental platforms have been back and booming for a while now, with many hosts reporting their calendars being fully booked. Of course there are still restrictions in place, and it varies depending on the location, but all in all many people are dying to travel, even if it means doing so in a manner different to pre-pandemic times.
As a property management company with rentals in an area highly frequented by tourists, Los Cabos, Mexico, these are some of the strategies that we have found helpful during these unpredictable times.
1. Flexibility. With everything seeming a bit unknown in terms of what’s going to happen next, guests are looking for the rentals that offer the most flexibility possible. They want to know that if they have to cancel for any reason, they will be able to do so. Now, no host likes the thought of a guest cancelling a few days before their check-in date and
having that lost income opportunity. However, its important to look at the big picture and consider that the realized income from offering flexibility often outperforms the results with the lost opportunity of income from folks that are avoiding homes with strict cancellation policies. To illustrate this, take the following scenario—you offer a flexible cancellation policy, and obtain five reservations for the month. One ends up cancelling. Versus if you had a strict cancellation policy, and you only got three reservations. No one cancelled but you still would have made more money by offering flexibility.
The other component to flexibility is the fact that people are booking their stays a lot closer to the check-in date—this is smart because they won’t have to worry about uncertainty so much if their trip is right around the corner. According to Airbnb’s website, about one third bookings are made within a week of the guest’s arrival date. Airbnb, and most other rental platforms, enable you to set a minimum advance notice. Some of the properties we manage here at Baja BnB allow same-day check-in (guests are usually understanding if check-in time is delayed a bit for cleaning). If you do have a property manager, you should check if they are facilitating same-day check-in. If you are hosting yourself and maybe you just don’t have the capabilities to pull off a same day check-in, that’s totally fine, but the shorter advance notice you need the better!
Sidenote: (this is my personal experience, so take it lightly!) In my experience, cancellations (especially closer to the arrival date) are quite uncommon if you provide positive and quick communication to your guest, which is very important. As a property manager with years of experience, the majority of my cancellations have been due to extenuating circumstances that the guest has experienced, which Airbnb typically refunds even if they have passed the cancellation period.
2. Cleanliness. Cleanliness is one of the top factors that guests care about in a rental, period
—so this should always be a top priority Covid or not. Covid cleaning precautions basically just mean going one step further and making sure your place is not only sparkling clean but disinfected as well. There are a few guidelines given by different platforms and organizations, here is Airbnb’s 5-step enhanced cleaning process: https://www.airbnb.com/help/article/2809/what-is-airbnbs-5step-enhanced-cleaning-process
3. Contact-free. Having the ability to have a contact-free check-in is a huge plus for travelers right now, and it is something that they are specifically checking off in the filter feature when searching for a rental. If you normally personally check guests in, or have someone that does, it’s a good idea to invest in a self check-in method. As a property management company that regularly receives feedback from guests, we hear the most positive feedback about electronic keyless smart locks. All the guest needs to do is input a code and they’re in, and they feel safe knowing that the code is changed between stays. A more affordable option is a simple lockbox; you supply guests with the code and they retrieve the key from there. And as always, make sure you are providing great communication prior to their arrival and giving detailed instructions to make check-in easy.
These are tips that we generally find helpful, and as always, it’s best to modify them taking into consideration your overall rental strategy and the specific characteristics of your property. If you want advice on your Airbnb and/or are interested in investing in the Los Cabos area, feel free to reach out to us. We service areas in Cabo San Lucas, San Jose Del Cabo, East Cape, and Todos Santos. Happy renting!
댓글