10 steps to Starting a Cabin Rental Business in 2022
Did you know the global vacation rental revenue is expected to rise to $88,420 million by 2023? As more and more travelers look for comfortable accommodation options in various countries, cabin rentals are the perfect opportunity to escape the chaos and enjoy the vacation to its fullest.
Be it managing the rental taxes, adding the amenities for your guests, or even choosing the right location for your investment property. Starting and managing a cabin rental business isn't as easy as it sounds.
Today, we will discuss everything from the fundamentals to the intermediate stuff of starting a cabin rental business and earning millions of profits. This guide is aimed at assisting you with every information you need to start a cabin rental business in 2022. Let's get started.
Steps To Start a Cabin Rental Business
Starting a cabin rental business requires immense research and preparation. Before you finally invest in a property and list it for rent, you need to have a clear plan in your mind about the future costs, investment, marketing strategies, and more. Here are the following steps to get your cabin rental business up and running strategically in no time.
Step 1: Choose The Right Location
For starters, you need to analyze the exact location of the cabin rental you would want to invest in. Most cabin rental locations include mountains, woods, lakefronts, or residential areas. It could be a large empty plot of land where you can build your cabin rental or an old cabin that can be renovated and rented.
You need to ensure that your chosen location is in high demand and has all the fun amenities and activities nearby. You can also select secluded areas if you only intend to attract travelers looking for the ultimate escape.
Start with searching for the vacation rentals advertised in the area you wish to purchase. You can find tons of data on websites such as AirDna, Booking.Com, Airbnb, etc., to better understand the right type of location to invest in.
Step 2: Explore the Types of Cabins
Cabins come in different shapes and sizes, such as cottages, log cabins, farmhouses, lodges, tiny houses, treehouses, ski chalets, etc.
Consider the style of the cabin as well. Will the interiors have rustic or modern art? What type of intricate designs do you want to add to your rental cabins interior and exterior to make it more attractive for the guests?
Ensure that you choose the type of house interiors and exteriors you can run and manage in the long run
Step 3: Calculate the Investment
Before you think about the profits yielded from renting out the property, calculate the investment and the costs you will need to finance your new business. Here are some questions that you can consider answering to get more insight into your finances:
Do you really need to take out a loan or mortgage?
If yes, what would be the level of monthly loan payments you can manage for the loan or mortgage?
How much does it cost to renovate the cabin?
How much are the additional fees for marketing expenses, OTA fees, cleaning, repairs, Maintenance, and others?
How much will all the furniture and other amenities cost for your cabin?
Are there funds saved for emergency repairs or natural damage?
Step 4: Evaluate the Licenses and Taxes
As a cabin rental owner, you need to secure a license before operating and renting it out. You may have to prove that the property you are about to rent is not your primary residence. You can find the list of documentation and requirements necessary to operate a cabin rental in your city on the local government website.
Next, you need to pay some rental tax for renting out your property. You may also encounter some deductible expenses that need to be considered while filling out the tax returns.
Ensure to check with the laws and requirements or speak to an attorney before you finally purchase the property and start operating your business.
Step 5: Create a Cabin Rental Business Plan
A business plan will help you identify the risks before you invest and understand the potential for the success of your business. This will also consist of a strategy that will help you run your business and a valuable tool to refer back to time and again to ensure you are in the right direction. It is crucial to complete your business planning before you invest, as this will help you genuinely judge whether your investment is worthwhile or not.
Step 6: Create a Marketing Plan
Once you decide on the location for your cabin rental, you will have a better insight into who and how to market your cabin. For example, if your cabin is intended for a romantic getaway, you need to set your marketing strategy to keep couples in focus.
If your cabin rental is for international travelers, you may need to make your website multilingual to ensure equal accessibility and flexibility for your non-native English speakers.
Think of different ways that make your cabin more unique compared to the other listings and create your marketing plan around it for the best results.
Step 7: List the Amenities You Will Offer in the Cabin
You need to create a memorable experience for your guests. This is why you need to add the right amenities to allow your guests to unwind and relax during their stay. For starters, you can include a fireplace inside the cabin if it is situated in a colder location. Similarly, you can also add a hot water tub which is perfect after a fun skiing session!
Provide the basic amenities like blankets, toiletries, condiments, and others to equip your guests with everything they need for a comfortable stay!
Step 8: Set a Cabin Name
Your cabin rental brand name is the basis of your marketing, as you will have to use this name across different marketing channels to advertise your business and attract more guests.
Your cabin rental name should ideally be something unique and associated with the area or nearby activity that is attractive to the tourists. You need to now tap into your creative mind to look for something trendy yet easy to remember, as tricky brand names aren't perceived by guests well.
Step 9: Click High-Quality Photos of Your Cabin
Once you have the cabin decided, it's time to click some high-quality photos and include them on your website and other listing sites. Try to include as many as possible and ensure that the viewer can feel the true essence of living in your cabin through the photos. You can also have pictures of the fun activities near your cabin.
Consider writing interesting captions to spice up your regular photos, such as "perfect weekend getaway with your family" or "plenty of fun activities nearby," etc.
Step 10: Create Your Website and Other Channels
Last but not least, you need to have a professional and well-optimized cabin rental website that showcases your cabin's whereabouts and makes booking your property for a stay super easy for the guests!
Adding conveniences to your website such as an online booking system, accepting online payments, managing guest inquiries, and others can be a great way to assist your guests through the entire booking process.
Final Thoughts
These are some essential steps you absolutely can not miss out on if you are looking to set up a cabin rental business soon. The goal is to do ample research about the cabins, locations, target audiences, and others and have a plan prepared for your business alongside. Setting and managing a cabin rental business comes with a lot of responsibilities. But with the right steps and strategies as shared above, you can make the journey seamless as you generate profits from your happy guests all year long!