Are you looking for the perfect tips to manage properties abroad? Now could be the ideal time to expand your short-term rental business.
According to Skift’s research for 2020, they are predicting 40 million more international trips, which will take the total to 1.34 billion trips. Get ready to access these globe-trotting travellers and profit from the extra income into your business.
Use these tips to check that your business is ready to be successful internationally. The opportunity for international short-term rental businesses is out there, start leveraging it now.
If you’re planning on receiving international guests, you need to know some of the laws around their stay. Many guests will be relying on you for guidance, especially about local visa laws.
A visa is a document that gives a guest the right to enter a foreign country legally. It does not have to be so complicated, and in some cases, you don’t even need one.
Further good news is that the EU is thinking of making visas even easier to stimulate the economy.
Your Legal Requirements As A Property Manager
When you rent property abroad, you need to make sure that you follow any specific laws in the country. It can vary from location to location, so check with a local lawyer to make sure you are legal: –
- Is it currently legal to offer short-term accommodation in this location?
- Is there any limit to the length of the stay?
- What is the maximum amount of properties you can rent?
- Is the type of property suitable for renting?
- Is a general business or short-term rental licence required?
- Check all required taxes.
Where You Can’t Purchase Properties
The rules on short-term rentals have become stricter over the last few years. Mainly because local hotels have complained about losing business in this competitive market.
Also, some neighbourhoods have found short-term rentals had a negative effect on their local communities, due to the constant rotation of guests.
Additionally, some locations have reported a surge in property prices. But this could be an exaggeration in some areas, as according to a recent study by Oxford Economics, the impact in American housing costs has not been that severe.
These factors have led to restrictions and total bans in some cities. For example, in the US, since 2019, there are extreme restrictions and bans in LA, New York, Santa Monica, Las Vegas and San Francisco.
And in Europe, a further example would be the Horizontal Act in Spain. Spain brought in new laws in 2019 for both short-term and long-term rentals.
In a nutshell, if you want to rent short-term, this can be voted on if you are in a community and be banned outright. Also, your community can vote and get your yearly community fee raised if you are making substantial money from rentals.
The rules may be stricter, but it certainly shows you that there is a vibrant international market waiting for you.
Because there is currently no set global rule, check with a local lawyer to find out the current laws in your preferred location, before you buy a property.
Get In Touch With The Local Market
If you are ready to take the plunge, make sure, you have done your research. The local market where you want to buy and potentially rent will have its industry statistics.
For example, location is key, as short-term rentals work best when they are near some attractions. For instance, beach locations are generally popular, but rural areas are now sought after as well. The European Vacation Rental survey in 2018 also found that the vacation rental industry had two distinct markets, urban and leisure.
The urban market was the younger market and was growing a lot faster at 33%, compared to the leisure market at 8%. Therefore, these two markets should always be analysed separately for all business decisions.
Of course, seasonality affects beach and leisure destinations much more than urban and city locations. Keep this in mind when considering purchasing properties or setting pricing.
Get to the nitty, gritty and ask the potential seller or a local real estate agent for the following data, so you are more informed before you commit yourself.
- Past occupancy rates
- The average daily rate (ADR)
- Popularity of the neighbourhood
- Local attractions
- Seasonal demands
If it is far away from where you live, literally go the extra mile and make sure you visit the location. Don’t be reliant on statistics alone; go and get a feel for the place. You will then get to view it in the eyes of a potential renter and get tips to take your vacation rental business international.
Dealing With The Currency
Gone are the days of dealing with international bank transfers and converting everything into the local currency, at the right time of day, any day of the week, to get the best rate.
Luckily, things have advanced since then, and you can now use vacation rental software for your short-term vacation rentals, such as Your.Rentals. Software takes the stress out of processing payments for both you and the guest.
For example, with direct bookings, you can arrange for payment to be collected online, there is no need for bank transfers or for the guest to pay cash on arrival.
This flexibility with payments is great for when you have properties based globally, but don’t have the time to monitor payments constantly at different times of the day.
Translating Your Listing Into The Local Language
If you want your short-term rentals to make an impact and start booking fast, then you need to ensure your property descriptions are in the local language for your potential guests.
Not everybody is a linguist or has the time to convert text into another language. You can use Your.Rentals easy listing builder to help you with this.
It can show your listing in the guests’ language. This adaption means they will have the same experience as anybody else, and you are even closer to securing more bookings, but this time internationally.
These tips can help you get you on track for growing your short-term vacation rental business. Go global and benefit from the guests who are booking international trips in 2020.
Watch this customer success story with Your.Rentals and how they were able to expand their business online.
Also, if you have over five properties and want more information on how to internationalise your vacation rental business, Your.Rentals can provide you with a dedicated account manager to assist you.