How Much Money Should I Save For Upgrades? ~ The Business Blog
When joining a vacation rental management program, something a new owner will be wondering is “how much money should I save for upgrades?” Sam, our Destin Revenue Manager, is here to answer that question. Sam is extremely knowledgable about the vacation rental market and loves numbers, and can tell you just how much money to save for upgrades to your home. Watch Sam’s video below for more information on saving for upgrades!
First, it’s important to keep in mind that when guests are booking their vacation rental, they want to stay in a property that is of equal stature to their own home. You work to regularly keep up with your own home’s value, so the same effort should be put into your vacation rental.
As for how much money you should be saving to enhance your property for repeat guests, we recommend putting away 10% of your rental income. For example, if you’re accruing $50,000 in your vacation rental, $5,000 is a good amount to save for upgrades. However, you may not be spending that entire amount in one year. You may spend a small amount one year on some interior decor or upgraded furniture and then the next, a larger amount. When a large appliance breaks, having that extra 10% will help alleviate some of the cost of replacing them. A washer and dryer are big ticket items, and you’ll want to have the funds to be able to replace them when the time comes.
To keep the revenue flowing and your repeat guests happily coming back, it’s important to keep your vacation rental updated with fresh paint, new and updated furniture, and monitoring the health and quality of your appliances. Replacing furniture before there is an issue is a big factor in securing not only good reviews but repeat guests as well. Spending a little extra money on a quality couch and mattress will truly aide in the satisfaction of your guests!
If you have questions about how much money to save for upgrades, or simply just have questions about our vacation rental management services, contact Sam today at (855) 335-0875.