People now are looking for passive income 💰 opportunities and side hustles to achieve their financial freedom.
The money from the 9 to 5 jobs barely satisfies the needs. And you might try out different passive income ideas to increase the cash flow.
Renting out your unused properties on the best vacation rental apps could be one of the best ways to increase your annual revenue.
In this article, you’ll get to know a few of the best vacation rental apps available in the market that can help you become a vacation rental owner.
Let’s get started🚀
5 best vacation rental apps to start your side business
We all know what Airbnb is and what it does. They are the pioneer of online vacation rental apps.
Airbnb streamlined and amplified the growth of the vacation rental industry and it is said to have over 150 million users on its platform, which you can fully utilize to grow your side business.
It charges a commission fee from both host (3%) and guest (under 14.2%) for every booking made on the platform.
Vrbo [Vacation rentals by owner] is a part of the Expedia group, which offers stand-alone vacation homes.
You can list your property for free on Vrbo, and it’s super easy to create your listing.
Vrbo’s search filters are the ones that set them apart from other vacation rental apps out there in the market now.
Vrbo has two subscription options for hosts,
- They charge 8 percent for each booking made.
- Or an annual subscription fee of $499 upfront.
Booking.com was founded in 1996 in Amsterdam. Since then, it has grown as one of the popular vacation rental apps.
It has over 28 million listings and covers 141,975 destinations in 230 countries. Also, it is accessible in almost 40 languages.
Booking.com is super affordable, which makes it one of the best vacation rental apps of all time.
Flipkey is the subsidiary of TripAdvisor, which operates as an independent vacation rental marketplace. It offers a variety of rental options such as vacation homes, villas, beach houses, and condo rentals.
It has more than 300,000 listings. You can list your property for free in Flipkey, and you pay 3% of your guest’s payment to them.
Expedia is an online travel app owned by Expedia Group, an American online travel shopping company.
You can list your properties like private homes, lodges, BnBs, etc.
Expedia charges the hosts in two models,
- Hotel Collect
- Expedia Collect
Hotel collect is when the guest pays the rent directly to the host. In this case, the commission of 15% will be charged by Expedia.
Expedia Collect is when the guest pays the rent to Expedia, and then Expedia transfers the payment to the host charging a 20% commission.
5 Reasons why these vacation rental apps are popular among the rental owners
- Easy to use and manage the business.
- Efficient use of mobile applications.
- Relatively easy to market the business.
- New revenue streams.
- Provides better rental options.
How you can create an app like Airbnb, Vrbo, Expedia?
If you’re a vacation rental owner with a huge entrepreneurial vision, this segment of the article is for you.
Creating a vacation rental app now is much easier than in old times. Yes, I mean it.
Take a look at our readymade Airbnb Clone [RentALL] that can help you create your vacation rental app by saving you almost $33,783.
As the name suggests, you can create any kind of rental marketplace platform with our base product.
10 highly actionable steps to start a rental business in 2022
Here are the exact steps that you can follow, [Take it one step at a time to get a sense of what you need to know and work on.]
Step #1 – Pick your rental business niche
But wait, what do you mean by business ‘niche’?
A business niche is a particular segment of a broader market on which it focuses.
In the rental industry, for example, you might choose from a variety of niche markets such as vehicle rental, bike rental, vacation home rental, and so on.
How to choose a niche for your rental business?
- Identify your areas of interest or the ones you are passionate about.
- Write down the areas you have chosen out of your interest.
- Identify the search volume and target market interest – using Google search, Ahrefs, social media platforms, forum sites, etc.
- Repeat the steps for all the areas/ideas.
- And pick the one that matches your passion and the market demand.
Step #2 – Identify your target audience
After choosing the niche, it’s time to determine who you want to serve.
Determining the target audience will help you reach the people who are interested in your rental business and would like to use your services.
For rental business, your potential audience might be:
- Business travelers
- Leisure travelers
- Short terms rentals
- Long term rentals
Choosing your business audience would help you conduct market research to identify potential problems they face and resolve them with your business.
Speaking of market research..!
Step #3 – Conduct competitor analysis & market survey
Conducting a market analysis will help you validate your rental business idea and uncover untapped business opportunities.
Market research can be done in two ways:
✅ Primary research
✅ Secondary research
You may gather first-hand information from your potential clients by conducting primary research. Surveys and focus groups can be used to acquire information about the business.
To acquire insights via secondary research, you can leverage pre-existing data from third-party surveys and market analysis on the internet. In secondary research, picking the right audience segment is crucial.
😵 That’s a lotttt of data you have to process, phew!
But it’s worth it.
Step #4 – Create a rental business plan
You’ve decided on a niche, defined your target market, and conducted comprehensive market research.
Now you have to combine all these data points to create a rental business plan.
A well-crafted business plan [like the one you’re about to write] should highlight your company’s future, financial aspects, and core objectives.
Things to include in your rental business plan:
- Executive summary [includes business vision, mission, services you offer, growth potential, etc.]
- Business objectives
- Financial planner and analysis
- Management hierarchy
- Marketing plan
Step #5 – Choose a business name
Here’s the fun part!
Choosing a business name for your rental business helps you with branding and creating an identity.
Here are some tips for coming up with a great business name:
- Your business name should reflect the purpose of your business.
- It shouldn’t be too hard to pronounce.
- It shouldn’t be too similar to other businesses in your niche.
- Make it short and readable.
Step #6 – Register and get a license
Registering and getting the required business licenses will make you a legal entity.
The process for registering your rental business varies based on the location and your business model.
Decide on your business structure (LLC, Corporation, etc.) and register with state and federal agencies.
Step #7 – Creating your rental website
COVID19 paved the way for digital transformation in various businesses around the world.
People began to book their services through mobile applications.
Creating your rental website and application will give you an edge over your competitors in the market.
Here are the four key benefits of creating a rental marketplace app:
1. Your customers can easily book rentals.
2. You can build a direct marketing channel.
3. You can provide better customer service.
4. You can effectively manage your business from anywhere.
But you might be wondering, “How can I make a rental app like Airbnb?”
Here’s the answer to your question:
There are two ways you can create your app,
1. Creating an app from scratch, and,
2. Making use of pre-made applications.
Both have their own pros and cons, but the cost is the most important factor to consider as a business owner.
Creating an app from scratch might cost you around $65000. As a startup owner, you might not have this much amount to spend on app development alone.
How much does a readymade app cost?
Step #8 – Buy insurance for your business
Purchase insurance to protect your online rental business. General liability insurance is the most frequent type of insurance that a company can purchase.
You can also get a Business Owner’s Policy to protect yourself from the threats that all small business owners encounter.
Step #9 – Invite relevant rental owners to host
🏁 You are all set to invite other rental owners to your platform.
Inviting other rental owners will help your customers pick the rental that best suits their needs.
Additionally, having a diverse portfolio of properties will allow you to make more money.
Step #10 – Marketing your rental business
You have your website and hosts.
Now it’s time to welcome customers into your platform.
You can use social media to attract customers to your platform. Booking.com’s Instagram account might provide you with ideas.
They create content around the best destinations to visit and encourage users to take action.
User-Generated Content [UGC] is another option. You might invite your customers to tag your business on Instagram with their vacation photos.
It’s a great way to get brand exposure.
Speaking of exposure, as an online rental business, you could also use SEO to drive traffic and increase brand awareness.
We’ve gone through some intensive steps to start an online rental business. It might be overwhelming.
No worries! This guide will go nowhere.
Take your time, give it a read again, and you will find your way to success.