Vacation Rental Loft

14 Vacation Rental Management Mistakes to Avoid

The vacation rental industry can be tough.Knowingw how to manage multiple holiday homet allows you to rotate guests routinely, which can be a big one-up on long-term rentals. The great thing about short-term vacation rentals is that they can be rented out for a few days or weeks and save the owners from worrying about contracts that last for a relatively long term. 

It also saves you from the inconvenience of longer contract periods. But along with the many benefits, there are also some common vacation rental management mistakes to be aware of and avoid. 

Through this post, you will be able to identify the various property management mistakes that can derail your efforts to effectively manage a vacation rental business. As vacation rental owners, you can save your rental property/properties from facing the brunt of these mistakes if you go through this article till the very end. 

In this article, we will list the 14 most common mistakes new vacation rental owners(or even the experienced ones) can make and help you avoid the same. So, without further delay, let’s see how you can avoid common pitfalls and help your vacation rental business thrive. 

Vacation Rental Management Mistakes to Avoid

Doing too much on your own

A common vacation rental owner mistake is that they often try to do so much single-handedly instead of hiring someone to clean up and manage the property and automate various processes on the vacation rental property.

By doing everything yourself, you can limit your business’s expansion because your time is limited. Despite being relatively modest and easily managed, you can spend dozens of dollars on things that are much easier to do with automation in an organization.

It also helps to use a reliable PMS (Property Management Software). Learn how automation works here.

Neglecting Advertising Until the Last Minute

Before you list your property, it’s important to make sure potential vacationers know it’s available. Often, potential renters will search online for their ideal vacation rental before they plan a trip. That’s why advertising your property early on is essential.

There are several different websites and tools you can use to market your property—many of which require very little investment or energy on your part.

Start by listing and marketing properties on vacation rental sites such as Airbnb, HomeAway, and VRBO; these are great places to start as they already have an established audience that is looking for what you have to offer.

Missing Out On Listing Your Property on Top Booking Websites

When you’ve not listed your vacation rental on top websites such as Airbnb,, TripAdvisor, HomeAway, or VRBO, your earning capacity can be greatly reduced.

These are the most popular websites to have your potential guests look for an upcoming holiday home or a memorable stay on their upcoming vacation.

Moreover, if you only list your vacation rental properties on just a single website, it will be just like putting all your eggs in a single basket. This will result in many opportunities to earn more money slipping away from your hands.

Therefore, when you miss out on listing your property on these and other popular booking websites, you miss out on attracting more potential guests. This can have an adverse impact on your profits and minimize the potential of your vacation rental management business.

Not Following All Applicable Rules and Regulations

You could get into difficulties if you don’t take the time to learn about all of the rules, regulations, and laws that apply to vacation rental homes in your area.

Check out the rules for noise offenses, illegal parking, littering, and garbage disposal. Before launching your vacation rental business, you should look into the area’s occupancy limitations, registration procedures, and tax collection regulations.

Lacking In Terms Of Customer Service

Failure to give good customer service and hospitality to your guests is one of the biggest blunders you can make. Avoiding this blunder is as simple as remaining professional, friendly, and respectful when engaging with your visitors. An optimistic outlook can make a big difference.

Also, when you receive communications from existing and potential visitors, be as receptive as possible. They must be able to contact the rental property’s owner if they have any concerns.

Creating a Subpar Listing

One common mistake made in vacation rental ownership is the creation of low-quality listings that have spelling errors and typos, and blurry photographs. You need a professional listing for the property. That information should be enough to convince your prospective guests to make a favorable decision.

Poor listings can drive away potential guest visitors and cause problems. How do you eliminate such issues besides writing a detailed description of your property? You could seek help from an experienced copywriter or editor.

Charging the Wrong Price

Pricing mistakes can lose you both bookings and income. If you charge too much, guests will most likely select more fairly priced properties over yours. On the other side, low pricing can attract customers, but keeping them too low means you’ll lose money.

Best price models can be dynamic. The rate per overnight in our house depends a lot on demand. Demand may increase during peak times or when you attend major events nearby. Market also fluctuates because similar property prices change.

Underinsuring or not having have vacation rental insurance

If someone stays on your property, it is likely to pose a risk of damage. Every vacation rental business must have policies for the situations that present themselves. You can also consider looking at the extension of your existing home insurance policies to protect your vacation home.

When this isn’t possible, many providers offer rental insurance for affordable rates. All you need to do is research and compare the ones that look suitable to your situation. Don’t choose without proper research.

Accepting Each Booking Without Scrutiny

Another mistake a vacation rental property owner may make is to accept every booking that comes their way. This can block some parts of your schedule and hinder you from booking better deals. If accepted, some bookings could result in some damage to the property as well.

For instance, many people willingly overpay for booking rented property for parties. Often rental owners have gut feelings about bookings that should not be accepted. Instead of allowing each booking, you should have an inspection process.

Using Unattractive Photos

Taking Vacation Rental Photos

Another major mistake to avoid is using photos of your property that look unattractive or bland. The first impression of your property is its appearance, and that is ensured through the photos you use on booking sites and elsewhere. If you use the wrong photos, you don’t sweeten the deal or encourage potential guests to book.

Therefore, upload high-quality photos to help your listing stand out. Investing in high-quality photos is a simple approach to entice visitors to look about your home before they even enter. Consider the images of your short-term rental property a photographic guide that highlights its best characteristics.

Neglecting The Power of Dynamic Pricing

The most efficient pricing approach is dynamic pricing. The cost of a single night’s stay at your property varies based on demand in a dynamic price system. During high season or if there are any major events near your rental, demand may increase. The fluctuating rates of similar assets can also affect demand.

Because dynamic pricing necessitates study, calculation, and regular modification, keeping up with it on your own can be tough and time-consuming. Fortunately, there are numerous solutions available to help you automate the operation and save your time and work.

Not Focusing On Getting Reviews

It’s no wonder that failing to solicit feedback is one of the most common vacation rental blunders. Guests are more likely to trust a property that has a lot of reviews than one that has a lot of negative ones.

Man leaving an online review

In the absence of reviews, you miss out on much-needed input regarding your property and the user experience you’ve offered. Reviews can be a great way to help you understand what works well and what needs improving.

Failing To Ask For Help When You Need It

While owning a vacation rental may seem like an easy endeavor, there are many important details to keep in mind. Being smart about your decisions—and seeking out help when you need it—will ensure that your investment does not turn into a money pit.

Before making any decision regarding your property, remember to ask yourself two questions:

  • What is my goal with renting my property?
  • What resources am I going to need to achieve that goal?

The first question helps you stay focused on what’s important while implementing decisions and actions in service of that goal. The second question helps you make sure you have all of the necessary information and support systems in place so that problems don’t slip through the cracks.

Expecting Too Much Profit Without Doing Your Research

While vacation rentals may seem like a great way to start building your real estate portfolio and producing some steady income, there are several things you need to know before you get started. One of these is that net profits are far lower than they seem. This is because you will have to pay expenses (like taxes) out of your revenue and operate with a much lower profit margin than many expect.

To ensure you don’t end up losing money on your investment, make sure to do thorough research and take all costs into account before purchasing any property. Another common mistake is being too frugal with renovations or repairs.


This concludes our list of vacation rental management mistakes. We hope that this article will help you identify and avoid these mistakes going forward.

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