Don’t let vacation rental problems surprise you! Our list will keep you prepared so you can succeed as a host.
Not all vacation rental problems can bring your business down— provided you are able to handle them well. Understand the following common vacation rental problems and smartly utilize the helpful hints to magnet success in managing guests and running your business!
1. Problems with Unauthorized Parties
When parties are held on your property, what’s fun for the guests is typically not so fun for the host or the cleaner, who has only a few hours to do turnovers before the next guests arrive.
Once an airbnb party gets out of hand, it could mean chaos, disturbance, damage and a lot more. In other words— a nightmare!
Ideally, your house rules will be your first line of defense. No loud music, no outside guests and no unauthorized parties!
We got it. In fact, most vacation rental homeowners have a strict no-party policy, but ultimately, they can only do so much to control everything.
Unauthorized parties have become a growing concern within the industry because of bad results.
According to The New York Times, complaints about party houses across various vacation rental sites soared 250 percent between July and September of 2020. Indeed, just recently, other vacation rental companies are all trying to nip off parties.
To put an end to your troubled mind, Hustle Pads’ platform puts a high priority on
preventing unnecessary, disruptive or unauthorized parties.
Being a Hustle Pads Host means you enjoy the benefits of providing housing to mostly only remote workers who are there to go on an adventure together or Hustle together across different business themes.
Managing guests is among our top priorities, to deliver you a typically better mannered guest. As a host, you can be confident that a NO PARTY POLICY will be strictly implemented. For more detailed information, please visit Hustle Pads Policy on Parties and Large Events.
2. Unmanageable Excessive Turnovers
High operating costs and management fees
Paying out high operating costs such as cleaning, maintenance and repair, marketing, internet, insurance, property manager, external amenities, and customer service fees to name a few, are prevalent in terms of airbnb problems.
In some cases, other excessive turn overs may also include the following:
1) Initial Setup Fee – the fee to set up your initial account
2) Monthly Management Fee – a fee to manage your property on a monthly basis:
- Flat Fee
- Percentage of Rent
- Rent Due vs. Rent Collected
3) Tenant Placement Fee –a separate fee for placing tenants in your property, may include:
- Advertising cost
- Tenant screening
- Move-in Procedures
- Preparing the lease agreement
4) Vacancy Fee – a fee for vacancies
5) Maintenance Fee
6) Eviction Fee
7) Early Termination Fee – If you break the property management contract early, you will often have to pay an early termination fee.
These expenditures will surely cause you a lot of pressure to work hard and hit the target sales needed to be able to cover them.
You might double, triple, or make even more out of your target sales during the peak season. However, you will also need to create a well-structured plan to keep your revenue afloat during the lean season, and lowering prices by simply omitting some of these things will likely impact your business quality if not executed properly.
With Hustle Pads’ platform, 7-day calendar blocks will make for easy management of the property and may help reduce your cost of operations.
High monthly vacancy rates
According to one of the vacation rental analytics, a good or high occupancy rate is considered to be roughly around 65%-75%, and to attain this, you need to take careful consideration of your location, pricing, marketing, and all other factors.
A low occupancy rate means a high vacancy rate, an indication that your property is not renting well. In other words, your business is not doing well.
According to the latest data from the Domain, in every 100 rental properties (1.7 per cent) nationwide were sitting empty.
No hosts ever wants that!
For your peace of mind, Hustle Pads will typically book your place for at least 3-4 week blocks. This reduces your turn overs and your volatility as an owner. No more 3 day rentals, no more empty days!
As of 2021, vacation rentals are paving their way to the top by being known as “The New Normal of Travel”.
According to a 2021 Vacation Rentals market size forecast, there are ~25,000 Vacation Rental Companies in the United States, ~140,674 Vacation Rental Companies Worldwide, and 1.98 million professionally managed vacation rental properties in the United States. However, it was also forecasted that in most U.S. markets, demand growth is outstripping supply growth.
3. Not the Ideal Guest
One reality about having guests in your property is that there is no assurance whether you’ll have an exceptional or a terrible one. In most cases, vacation rental problems such as that of having unauthorized parties can be a nightmare for the host, and it continuously has a significant influence in the industry.
The most common concerns about non-compliance with house rules, cleanliness and orderliness , noise and disturbance , fabricated profiles , and difficult and irate guests, have never been louder in the hospitality industry.
So what’s the catch?
Hustle Pads delivers a higher qualified and typically better mannered guest! We aim to provide users that are typically more mindful of your property which means less wear and tear.
However, keep in mind that you can never predict what will happen with each guest; all you can do is be prepared.
4. Poor Customer Service for Hosts
Good customer service is a must in the hospitality sector, especially vacation rentals. However, it is commonly limited and focused on guests!
While every host is required to be proactive & reactive in their customer service responses, we understand that you too require the same to keep the ball rolling in your rental business.
This study showing that we are more likely to remember negative encounters than positive ones is the reason why it is important for a platform and host to keep a quality rate of support, because we also believe that having reliable customer support can define our business just as a bad one can ruin it.
With a goal to help our hosts thrive in their rental business, we gave Customer Support a high priority rate, and you can be assured that we are always just a click away, ready to assist you at our support page.
5. Late Notice for cancellation of guest
You put on a lot of effort preparing your unit. You set new bedding, new linens, complete amenities, paid a cleaner, rejected other reservations for the same date of arrival due to the unavailable status of your property – then suddenly, your arriving guest did a last minute cancellation. Boom! This airbnb problem is kinda a pain in the ass!
However, you need to remain hospitable and deal with that guest nicely and professionally to avoid the negative impact that it could bring both on your business and on the guest.
Guests, on the other hand, may have valid reasons for late cancellation ranging from different factors, whether from statewide restrictions to family circumstances. Whatever the reason, it’s imperative for the host to be patient and understanding when a cancellation occurs.
On the other hand, with the help of Hustle Pads’ flexible cancellation terms and extenuating circumstances policy, we believe in minimizing the burden you will possibly experience from inevitable situations like late cancellation.
6. Abusive Guest Reviews
Even when you think you’ve done everything right, unpleasant reviews can happen!
Receiving your first unfavorable review can be disheartening, especially if you’ve bent over backwards to satisfy your guests. However, as a host, you must constantly reply to both favorable and negative feedback.
According to review insights conducted by Tripadvisor, 84 percent of travelers believe that reviews are extremely important, and 63 percent of travelers rely on reviews as one of the main factors when making reservations to a property.
Negative reviews contain constructive criticism and abusive guest reviews, on the other hand, are vague, irrational or contain profanities.
Guests are prone to complain if their dreamed vacation doesn’t go as planned and if this is not addressed, the odds of receiving a negative or abusive guest review are higher.
In this industry, positive reviews can be extremely beneficial for acquiring new guests, but if it is the other way around, it can also harm your business because most unsatisfied consumers would not want to do business with you again.
There is, however, a distinction to be made between a negative review and an abusive guest review. Negative reviews contain constructive criticism and abusive guest reviews, on the other hand, are vague, irrational or contain profanities.
Moreover, while we expect most guests to provide an ideal and helpful travel experience, this doesn’t mean that we will tolerate unreasonable reviews. Hustle Pads has set review guidelines which will protect both host and guests.
There are numerous things you can do to improve your vacation rental property, and this may include essential guest necessities, thoughtful touches, or investing in high-quality furniture.
Occasionally, guests will be inevitably dissatisfied, resulting in a poor review, and
no host ever wants that, so here are some tips from Hustle Pads on how you can
definitely avoid dissatisfied guests so you don’t have to deal with it yourself.
7. Neighbors’ Noise
In most situations, excessive noise, blockage of driveways, or partying at all hours is what makes a neighborhood one of the vacation rental problems, but according to an industry poll of over a thousand homeowners, excessive noise is the largest issue among potential vacation rental neighbors. Why not, if it’s only going to make you more stressed?
According to Elizabeth Scott, MS, a wellness Coach, Author, and Health Educator, noise is a health hazard, not simply a nuisance, because it can cause stress, anxiety, depression, and sleep disruptions.
Wow! That’s quite a sum. Hope it didn’t cause too much of a stir for you.
Although there is no one-size-fits-all answer for noise in a vacation rental, Hustle Pads believes that taking action is always the key.
A proactive approach and more stringent policy implementation can go a long way toward ensuring peace and business prosperity. It’s necessary to take care of your neighbors and those within and near your vicinity when you are a vacation rental host, and Hustle Pads will go above and beyond to welcome only those who are prepared to cooperate as much as possible!
8. Compensation for Missing, Broken or Damaged Assets
Guest damage is out of our control. This could happen accidentally or intentionally caused by the deliberate, negligent or reckless acts of guests to your property – we never know.
At some point, you may want to consider implementing a security deposit as your deterrable means. However, it is hard to manage and may put your business into greater risks.
Knowing that guest damage concern is inevitable and crucial, Hustle Pads is bringing you a Hassle-Free Protection which will give you free insurance coverage of up to $5,000 as a host. This covers any major damages that could typically happen during a guest’s stay.
9. Guest Accidents During Stay
Worry that things will not go according to plan is common among hosts, and is one of the vacation rental problems in general. Surely you don’t want to regret owning a vacation rental home because of it—especially when guest accidents happen.
Although guest accidents cannot be predicted, as the property host, you should be aware that your role carries with it the obligation of premises liability.
The vast majority of vacation rental guest accident cases involve dangerous circumstances and obnoxious guests who are bothered by other guests.
When guest accidents happen and a guest is injured on the premises, the host is required to take corrective action to keep the peace, as it is imperative for the host to ensure that the premises are as crime- and accident-proof as possible, abiding with the Hustle Pads’ Community Standards and Expectations.
Every host is expected to be prepared for unexpected financial losses, including the potential for premises liability litigation during your journey in the industry.You may need to pay a settlement for lost earnings, medical costs due to guest accidents, and so on when this happens.
To minimize the risk, Hustle Pads’ Hassle-Free Protection is designed to protect every Hustle Pads host and provide you the primary protection needed in case of eligible events and situations.
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