April 15, 2009

If you own a vacation rental property, this year it may be a little more challenging to find a renter. More people have decided to spend more time visiting places within a day's drive of where they live, using their home as a base for travel. And some people just don't have the discretionary funds this year that they've had in the past.

But that doesn't mean you won't rent your vacation home. It's just means you may have to change the way your market it.

"The truth is, the playing field has changed," Christine Karpinski, Director of Owner Community (www.OwnerCommunity.com) for HomeAway.com (an online vacation home rental marketplace). "People are still going to be taking vacations, but rather than passively waiting for them to come to you, you're going to have to put in a little extra effort. You're going to have to ramp up your marketing and strategies and-this is important-set some goals. By having a number of bookings or a profit amount to aim for, you're more likely to stay motivated."

Karpinski offers the following advice to help rent your vacation home in these challenging times:

Reassess your target market. Knowing whom you are trying to attract will help you choose the best marketing options for your property. Do you want to stick to only families and seniors or are you open to 20-somethings and college students? Consider the demographics your past guests.

↓ Continued from front page of Where To GO Next!

"Keep in mind your target markets can change," says Karpinski. "For example, rather than accepting only families willing to book for six nights, you might open your home to business travelers or weekend vacationers who will book the property for only one or two nights. If you want to stay booked up in a down economy, these are definitely markets you should consider."

Perform a SWOT Analysis. In case you didn't know, "SWOT" stands for strengths, weaknesses, opportunities, and threats. Completing a SWOT analysis will help you determine where your vacation home's strengths lie, where you can improve, what opportunities exist in the market, and what threats loom on the horizon. Here are a few things to consider in each category:

Strengths.
• What does your home offer that other homes in your area do not?
• Are your rates competitive?
• What do you do as an owner that is better than other owners in your market?

Weaknesses.
• What do other homes in your area offer that you do not?
• Are there any areas where your home could be improved?
• What could be improved about your ads?

Opportunities.
• Are there any improvements being made or attractions being added in your market?
• Does your property cater to any growing market segments like seniors or business travelers?

Threats.
• Is your market overcrowded with vacation rentals?
• Has there been a significant increase in property taxes for non-homesteaded homes?
• Is there movement in your market to restrict, limit, or ban short-term rentals?

Size up your competition. In positioning your vacation home, you should consider who you're competing against for your target travelers, what they offer, and how their pricing compares to yours. After you've compiled a list of your biggest competitors, take note of where they currently advertise, which marketing tactics they've chosen to implement, and how you can more effectively or persuasively reach the target customers you have in common.

"Don't be afraid to look to your competition for creative marketing ideas," says Karpinski. "Maybe you like the way they've staged a room in one of their photos, or they're offering a special you hadn't ever considered. Just be sure to put your own spin on it to make it's true to you and your property."

Concoct the right marketing mix. Most marketing activities conducted by vacation rental homeowners fall into the categories of online advertising, offline advertising, and word-of-mouth marketing. While print and radio ads are viable options, Karpinski says you can't beat online advertising for ease and cost-effectiveness.

"Vacation rental websites like HomeAway.com, VRBO.com, and VacationRentals.com attract millions of vacationers each year, plus they provide great support to the homeowners who list their properties. You can list on these sites for between $169 and $550 annually," she explains.

"And you can't go wrong with great word-of-mouth advertising," she adds. "In addition to asking for referrals, you should consider asking your renters to look you up on Facebook or LinkedIn. It's a great way for you to create a network of renters and to give them an easy way of recommending you to their friends and family."

Be careful how you position your property. When setting your marketing strategy, it's important to determine what group(s) your home is perfectly suited for. Many vacation homeowners inadvertently target the wrong travelers, says Karpinski, especially when they start feeling desperate.

"For example, an Orlando-area home called 'Mickey's Paradise,' is family-friendly but it may not also be the perfect home for a guy's golfing getaway," she explains. "If you position it to attract golfers, not only will you risk missing out on the families who would actually be right for the home, you may also make golfing renters unhappy with your kid-centric décor and the loud playground next door. This can lead to negative property reviews, which you definitely don't need."

Stay current with events in your market. "Even when the economy is bad, large groups of people will still turn out for golf tournaments and other sporting events, music festivals, and so on," says Karpinski. "It's important that you stay abreast of events in your area so that you can adjust your marketing strategies accordingly. Consider subscribing to the local newspaper in your vacation home market or set up Google News Alerts to come to your email. Simply making a change in your ad copy to mention the event will help event participants find you more easily."