The 6 Critical Steps to Rental Revenue Projections
How We Craft Revenue Projections With Pinpoint Accuracy
And what it means for our homeowners
Every home is unique. And every rental revenue projection should be treated as such. At InvitedHome, first and foremost, we understand your tremendous love of your vacation home. And we want you to enjoy it whenever you can. Therefore, based on your own varying levels of occupancy throughout the year and your individual goals for return on investment, we’ll customize a projection that is personalized for you.
InvitedHome Head of Revenue Management Owen Miller always says, “I cannot emphasize enough that each projection is bespoke.” So with that in mind, Owen offered his elaborate insight into some of the basic steps of the process when assessing each new home, and the often unseen intricacies that contribute to more accurate revenue projections for new homeowner partnerships.
Step 1: Research
Before InvitedHome even meets with a prospective homeowner partner, you can be confident we've done our due diligence. We've already evaluated questions like “what drives demand for this specific destination?” and analyzed pertinent data, such as where guests most frequently travel from. We gather these to help round out a complete picture of the potential revenue that you can generate from your vacation home.
Step 2: Analyze
This data is not just part of the presentation process, either. The information curated by InvitedHome relating to weather, activities and attractions, and minute details such as school calendars associated with the guests that frequent the area all contributes to how we craft different rate periods for that destination. With a collective dataset, we then carefully analyze how it directly corresponds with both demand and consumer behavior.
Step 3: Compile
Next, the InvitedHome team compiles a series of comparable homes in the immediate area to assess competitive price points throughout the various seasons and peak vacation rental periods. This goes beyond just counting bedrooms or square footage. It’s far deeper, as we then carefully compare the quality and attractiveness of your home with nearby properties, tending to the details with the same care you should expect and demand for your high-end home.
Step 4: Differentiate
Demand patterns differ in every destination. And our local team carefully measures what makes each upscale vacation home so unique. It should then come as no surprise that there’s a direct correlation between demand and the home’s specific location. So while InvitedHome’s premier coastal destinations always have their own distinguished cachet, a home located directly on the beach is still going to have a higher year-round allure. Such characteristics always drive interest, and our astute team accentuates what sets each home apart from the rest.
Step 5: Assess
The process continues all the way down to the smallest details. Amenities can greatly impact demand in certain destinations. InvitedHome takes stock of all the imaginative extras your beautiful home provides, and does not take them for granted. Outdoor spaces with great views, a hot tub on the patio, a remodeled kitchen, and even smaller luxury appliances such as Nespresso machines and Vitamix blenders will all have a positive impact on your nightly rate.
Step 6: Personalize
Of course, no rental revenue projection would be complete without a customized plan and input from the people who know your destination best - our experienced and expert ground teams, as well as you. They are lucky enough to enjoy your home’s location full-time, and thus know exactly what makes it so unforgettable. This rare insight manifests itself into a one-of-kind understanding of your particular market, and ultimately helps us meet your goals for your home, whether it’s maximizing your return on investment or maximizing the joy you feel when you step into your pristine vacation home every year. We always personalize your projection based on your individual needs and goals.
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See what you could be earning with InvitedHome.
Turning Projections in Profits
At InvitedHome, we spare no expense when it comes to projecting potential rental revenue for your fabulous vacation home. And this is only the beginning. The unparalleled attention to detail that the entire team brings to the table before and after you officially come onboard only intensifies throughout our partnership. From the regularly scheduled maintenance and proactive upgrades to the essential inspections needed to sustain your vacation home’s beauty in between, projections can quickly turn into profits when you connect with InvitedHome. Please call our team members at 855-666-8064 to learn more today.Get Rental Estimate or Contact Us