The 6 Critical Steps to Rental Revenue Projections
The InvitedHome process ~ To understanding revenue success
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 our due diligence is done. Questions like “what drives demand for this specific destination?” are evaluated, and analytics such as where guests most frequently travel from are gathered to help round out a complete picture of the potential revenue that can be generated from your 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 - along with minute details such as school calendars associated with the guests that frequent the area - all contribute 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 those properties by treating 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, oftentimes, there’s a direct correlation between demandand the home’s specific location. So while InvitedHome’s premier coastal destinations always have their own distinguished cachet, a beachfront home is going to have more of an allure, all year round. Such characteristics always drive interest, and our astute team accentuates what makes each individual home so unique.
Step 5: Assess
The process continues right 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. That great outdoor space you have when the weather is nice? That can only raise the price. How about that hot tub out on your patio to relax in during ski season? It’s often these sought-after attractions your guests will be seeking, and your rates will reflect that accordingly.
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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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