YOUR HOLIDAY RENTALS GUIDE
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1 YOUR HOLIDAY RENTALS GUIDE
2 Section 1 CHOOSING TO LIST YOUR PROPERTY AS A HOLIDAY RENTAL Whether you own your property primarily as an investment or as somewhere to spend your holidays, listing it as a holiday rental can be a great way to increase your return on investment. Holiday rentals are a completely unique way to give travellers their own freedom and space during a family trip or couple s retreat. HomeAway attracts over 32 million potential travellers every month, so why not make the most of your holiday home and connect with this growing audience?* Holiday renting can be a highly profitable endeavour in many cases more than long-term rentals can allow. Depending on the location of your property, you might charge holiday guests taking a one-week holiday the same amount a long-term tenant might pay for one calendar month. Leasing your property for only 12 weeks a year as a holiday rental would then generate the same investment return as a permanent tenant! Any additional weeks when you rent the property simply increase your returns, with the property still available for you to enjoy for your own holidays. We ve put together this guide as an introduction to running your first holiday rental with HomeAway. Let s get started! Top 5 HomeAway holidays in Australia 1. Nelson Bay, NSW. 2. Cowes, VIC. 3. Byron Bay, NSW. 4. South West Rocks, NSW. 5. Sorretno, VIC. Based on Feb 2014 enquiries * Represents the global HomeAway network. Current at 30 September, Section 1 Choosing to list your property as a holiday rental Page 1
3 Section 2 WHAT S INVOLVED? If you decide to rent your property as a holiday rental, there are a few key decisions you ll have to make. The first being whether you want to look after the rentals yourself or use an agent? If you want to self-manage your property and maximise returns, HomeAway provides handy tools to help you out, from rental contract templates to guides on how to reply to travellers. Even our HomeAway mobile app can help you manage bookings on the go. Above all, listing on the HomeAway network will help grow your enquiries so more travellers can discover, book and enjoy your holiday rental. Over the next few pages, we ll take you through the process of preparing for your first listing and welcoming your first guests. Getting Ready Complying with rules and regulations Setting-up your business Managing keys & hiring cleaners Preparing your property Arranging your listing Day to Day Business Managing your listing Responding to enquiries and booking requests Taking payments Section 2 What s involved? Page 2
4 Section 3 GETTING READY Without holiday letting, we simply wouldn t be able to afford to keep our property. Renting holiday homes has enabled us to ride out the difficult financial times by giving us higher returns than permanent rentals, which gives us the opportunity to realise our asset at a time of our choosing. Glenn, Torquay, VIC Self-managed holiday rental owner Complying with rules and regulations Before you are ready to list your property for rent, there are a few things to consider to help your business run as smoothly as possible. Privacy policy Small businesses are generally not required to comply with the Privacy Act, however it is good practice to be aware of the guidelines. There is no hard and fast rule about what questions you can ask a prospective guest in screening their enquiry but it s important to consider whether it is necessary to collect the information in connection with the holiday rental and whether you are collecting that information in a fair way. For example, if a property owner did not wish to rent their holiday home to university students, then it may be necessary and reasonable to ask questions to obtain that information from the outset. To determine if you are covered by the Privacy Act, and for more information on how to comply, visit oaic.gov.au. Section 3 Getting ready Page 3
5 Section 3 Getting ready Government bodies Each state has unique legislation relating to holiday rentals. Generally, a holiday home or rental is defined as a property ordinarily used for holiday purposes or rented for no more than 2 months in a year. General government guidelines for property owners include: 1 2 Confirm the rental agreement in writing to guests, including emergency and repair contacts, and departure requirements. Request a security bond to protect you from damage to the property and early departure. Contact your state government department for further information: NSW fairtrading.nsw.gov.au SA cbs.sa.gov.au QLD fairtrading.qld.gov.au NT consumeraffairs.nt.gov.au VIC consumer.vic.gov.au Council zoning Some councils may require you to seek approval for short term leasing (i.e. less than 3 months) of your property. Contact your local council for guidelines and further information on approving your holiday rental. Setting up your business You may want to set up a registered business with an Australian Business Number (ABN) for your holiday rentals. As a business, an ABN is essential for dealing with the ATO and other government departments. You will also require an ABN to register for GST. For more information, visit business.gov.au. Taxation guidelines require you to declare income from rent for tax purposes. You may also be able to claim on rental property expenses. Contact your accountant or the ATO directly for more information on income tax and GST ato.gov.au. 3 Make an inspection of the property before new guests arrive. Note any damages and provide guests with a copy of the report. Guests are responsible for any damages caused by their negligence. TAS consumer.tas.gov.au ACT ors.act.gov.au Section 3 Getting ready Page 4
6 Section 3 Getting ready Accepting payments You need to decide on the types of payments you would like to offer your guests. Consumers are accustomed to paying online for goods and services, so using an online payment system could help you convert more enquiries. These payment options may include: Direct transfer Provide guests with your account details so they can deposit the total sum directly into your account. Make sure you ask guests for a receipt number of the transaction as a reference. Credit card To accept credit card payments directly, you must have a merchant account. The major Australian banks can assist you in setting up a merchant account that accepts Bankcard, VISA and MasterCard. You will need to deal directly with American Express and Diners if you wish to accept payment with these cards. Speak to your bank to arrange the best way of processing these payments. Cheques Make sure you get the guest s current residential address and phone number to follow up payment in the event that the cheque bounces. Avoid taking payment by money order, cashier s cheque or through untraceable transfers like Western Union or MoneyGram. These payment methods are often favoured by scammers and can place you at risk. Section 3 Getting ready Page 5
7 Section 3 Getting ready We handle everything ourselves. I like to get a feel for the people who will be coming to our garden and the cottage. I also want to be confident I have all the arrangements correctly recorded in our diary so there are no mess-ups. I arrange a cleaner to come on a regular basis and my husband coordinates all the maintenance. That doesn t mean we necessarily do it all in fact, now that we have paying guests we can afford to have professionals assist us at all times. Fiona, Claremont WA Self-managed holiday rental owner Managing keys and hiring a cleaner If you don t live in the area of your holiday rental, this can seem like a big barrier to managing rentals directly. However, with a few of our tips below and a little bit of research, these issues can be overcome Ask a real estate agent or local business such as a post office or newsagency, or a neighbour, if you can arrange key pick-up from them. Install a keyless lock for easy, hassle-free access. Change the code periodically to ensure your property s security. When hiring cleaners, speak to locals or other holiday rental owners in the area to see who they recommend. You may want to interview them before making your final decision. 4 5 Once you ve decided on your cleaner, it s important to give them clear instructions on your expectations. Cleaners are also a great source of feedback about the state of your property after guests have stayed. Many travellers depend on their phones during a holiday, so help them out by sending check-in details and keyless entry codes by both and SMS. Section 3 Getting ready Page 6
8 Section 3 Getting ready Preparing your property Standard equipment It s important to consider your guests expectations. While they are not expecting a cookie-cutter hotel room, there are certain features that will increase the property s appeal and your guests comfort. It can be helpful to look at other property listings on HomeAway to get an idea of what other owners offer. Furniture It s a good idea to think about how many people your property can comfortably accommodate. Make sure you have enough beds, couches and chairs to cater to all. Bunk beds can be a great way to make the most of small bedrooms. If you want to attract a particular market, e.g. families or pets, you may want to include furniture that is suitable to their needs. While some guests will want nothing to do with the kitchen while on holidays, many will want to make the most of the opportunity to cook affordable meals. It is generally expected that holiday rentals will come with a fairly well-equipped kitchen with enough plates, cutlery and glasses for all guests. Basic cooking gear and other items such as a kettle and toaster are also usually expected. Outside of the kitchen, you need to decide whether you want to supply linen and towels. Many owners expect guests to supply their own, which is generally accepted. Other bedding, such as blankets and pillows, should also be supplied. It is possible to make linen an optional extra cost for guests. You may be able to partner with a local linen service business to cater to your guests needs. Added-value To make your guests stay as enjoyable as possible, it s a great idea to think beyond the necessities. Providing entertainment in the form of books, games, music, internet and perhaps even perhaps even Pay TV, can help attract guests and make your property a place they want to return to and recommend to others. What to lock away If your property is a place for you to holiday as well as your guests, you re likely to have valuables and other items that you d prefer your guests didn t have access to. If this is the case, put a lock on a room or closet where you can store these items. Section 3 Getting ready Page 7
9 Section 3 Getting ready Create your listing When you advertise your property online, you need to include details that will appeal to potential guests. Photos The photos of your property can make a huge difference to the amount of enquiries you receive. Take some high quality photos and ensure that you display as many photos of the property itself. At a minimum, include shots of: The exterior Kitchen Living room Main bedroom Additional bedrooms The outlook Property description After the initial impression from your photos, travellers will turn to your property description to see whether the rental is suitable for them. It is important to make the description of your property as clear and as succinct as possible to grab their attention as they skim the page. Describe: The property features including unique selling points What kind of people it is suited for (couples, singles, groups, families, accepts pets) The location (proximity to local amenities and areas of interest) Number of bedrooms, bed, bathrooms etc. Pricing It s important to set the right price for your property. What sort of guest do you want to attract? Is your property best suited to couples, families or large groups? Your prices will help set guests expectations and greatly influence whether they ll consider enquiring about your property at all. Make sure you look at similar properties in your area to help you set the right price, and see if others change the price depending on the time of year. For example you may want to charge a higher price for peak season, school holidays and public holidays. Another question to ask yourself is whether you want to set a minimum night stay? This could vary depending on the demand for your area and your property. If your area is in a quieter holiday area, you ll encourage more bookings by offering 2 night stays rather than restricting to 3 nights or more. Section 3 Getting ready Page 8
10 Section 4 DAY TO DAY BUSINEESS Once you are up and running, there are a few simple day to day tasks you ll need to coordinate in order to maximise your bookings and keep your guests happy. Managing your listing Travellers can get frustrated if they can t find out easily if your property is available, and this can affect whether they take the time to enquire with you. So make sure that you add bookings to your calendar to show when your property is unavailable. Keep the pricing up-to-date on your listing also, as this this will attract qualified enquiries that convert to bookings. Section 4 Day to day business Page 9
11 Section 4 Day to day business Responding to enquiries When HomeAway travellers are interested in your property, they ll send an enquiry via our website. Try and respond to enquiries on the day you receive them, ideally within a couple of hours, as this will increase your chance of converting the enquiry into a booking. You ll receive an alert when a guest enquires on your property. If you have a smartphone, you can access and respond to your enquiries on the go with the HomeAway smartphone app for ios and Android devices. When travellers enquire, you ll receive their name, contact details and intended travel dates. You can increase your chance of converting enquiries to bookings by using the phone: call guests to quickly vet their enquiry, answer their questions personally, and check whether they re suitable for your property. experience. Make sure you treat them as a valued customer as this will also help you to secure their booking. Taking payments Deposits Determine what deposit amount you deem acceptable in order to hold the booking. 20% is a good benchmark. Once your guest has paid the deposit, the booking is confirmed and you should block out your calendar to reflect this. Bonds You will also need to consider whether you will hold a bond until after the guests have left the property to safeguard you against any issues. Many businesses simply ask for credit card details to hold, however it s not unusual to take a payment beyond the rental fees that you can return following the stay. Terms and Conditions Make sure your guests are aware of your cancellation policy and general terms and conditions. Details to highlight include your check-in and check-out times and process, the amount due, and any property policies and restrictions such as whether smoking and pets are allowed. Get started with our rental agreements Not sure where to start with your first rental agreement? Find sample documents and templates on HomeAway. At this point in the process, just like at a hotel reservation centre, guests expect to receive a positive customer service Section 4 Day to day business Page 10
12 Section 5 ADVERTISING WITH HOMEAWAY Join the world s largest holiday rental network Start your listing now Instantly list on 25 travel sites in the US, UK, Australia and around the world. Pay no booking fees or commissions. Reach over 32 million potential travellers each month. We guarantee at least one booking, or your next year is free*. Our easy-to-use tools make creating and promoting your listing a breeze. To list with HomeAway, simply call or visit homeaway.com.au * Subject to Performance Guarantee Terms & Conditions, available at homeaway.com.au Section 5 Advertising with HomeAway Page 11
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