So You Want To Be A Bed And Breakfast Owner?

Posted on July 4, 2014 by Maria Rekrut

What is a Bed & Breakfast?

A bed and breakfast (often referred to as a B&B) is a type of boarding house typically operated out of a large single family residence. Guests can be accommodated at night in private bedrooms (which may or may not have private baths) and where breakfast is served in the morning.

 

The business may be operated either as a primary occupation or as a secondary source of income. The staff often consists of the house’s owners and members of their family who live there.

Typical Owner of a Bed & Breakfast

The Bed and Breakfast business is run by many Baby Boomers, who are professionals wanting to live in a beautiful home while running their own hospitality business.

Guests can stay  for more than one night, but in some cases they will be expected to be away from the house during the main part of the day. This arrangement however is generally found to be convenient, for many of the more popular B&B’s that are located in beach, mountain and historic areas,  where daytime recreation and tourism activities are popular.

Advantages of Staying at a Bed & Breakfast

One advantage of staying at a B&B is readier access to popular locations “off the beaten path” which may not be convenient to the city center. Because most B&B’s are small, rarely with room for more than about 10-15 guests, it is advisable for anyone wanting to stay at a bed and breakfast to make reservations well in advance of their travel date.

Consultation with a qualified travel agent knowledgeable in this type of accommodation is recommended; many B&B’s belong to associations, have a web presence, and are described in various books and travel guides.

The B&B arrangement is actually a very old one; before the 20th century, it was quite normal for country travellers to spend the night at a private house rather than an inn, and the custom persists in many parts of the world.

Snap Shot Of a Bed & Breakfast Business

Modern B&B’s often consciously seek to recall earlier days; they are frequently established in attractive older houses that have been renovated and filled with antique furniture. Most B&B’s serve a traditional breakfast as a point of pride.  The owners often publish their breakfast menus on their website.

The term “bed and breakfast” is also used to refer to breakfast being the only meal provided, commonly in package holidays, in a major hotel that may provide other meals to only some customers.

As they are often run by amateurs, with little lodge management experience, strict laws govern the operation of bed and breakfasts, which vary in each jurisdiction.  The Bed and Breakfast is inspected every year by a By-Law officer, health inspector, and fire department. These yearly inspections can vary from province to province, state to state and country to country.

The most common regulations B&B’s must follow pertain to safety. They are required to have fire resistance, a sufficient fire escape plan in place, and smoke detectors in each guest room.  If the Bed and Breakfast has a kitchen, then the health inspector will inspect the kitchen. The By-Law Officer will inspect for parking and the general over all state of the Bed and Breakfast dwelling.

Kitchens and equipment used to serve meals must also be monitored for sanitation. Most B&B’s are generally compliant with their jurisdiction’s laws.

Email me or leave a comment below if you have any additional questions about being a Bed & Breakfast Owner.

Maria Rekrut

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Home Stays – How To Make Money While You Live In Your Dream Home

Posted on July 4, 2014 by Maria Rekrut

Home Stays comes from the idea to give a visitor or student the typical local experience, complete with living with a host family, tasting local cuisine and visiting areas of interest. To put it simply, a home stay combines the comforts of a home setting, with bedrooms in a host family home, with the personal hospitality and sharing of knowledge of the local culture by the host family.

 

Home stays have also emerged as a popular option which offers younger guests experience of eating home-cooked food, living in the host family home, observing and participating in their life styles and shopping with a local family.

This form of tourism has become more popular in recent years as younger travelers want to experience the cultural varieties and differences from their homeland. Young travelers are looking for a unique experience, just watch the TV shows such as Xtreme Trecker.

Gone are the days of going only to Europe, this was the experiences of the majority of Baby Boomers, when they were looking for an adventure. Student exchange programs promote tolerance, maturity and independence. They also encourage an international perspective. In a very competitive world these are highly sought after qualities.

Student exchange programs are an investment for life. The experience can be beneficial in many different and valuable ways such as:

• Learning another language and opening career doors that students may not know existed
• Get to know how others live and come to see the world from another perspective
• Test themselves to acquire independence and maturity
• Make new friends and appreciate old ones
• Gain experience
• Learn about the world first hand

Long after the student returns home the exchange experience will influence and influence the students’ life. The Home Stay experience will provide the students with a substantial backdrop from which to make future study and career that much more important.

This exchange experience will set them apart from the crowd and mark them as someone who has proven themselves in challenging circumstances. Experience is everything, employers are increasingly alert to the knowledge gained from the Home Stay. This experience will set them apart from the crowd and mark them as very mature.

Students are eligible to participate on an exchange program if they meet the following requirements:

• still at school when applying
• in good physical and mental health
• have maintained the equivalent or better than a C grade average since Year 9
• are mature and open-minded
• are flexible, adaptable, responsible and ready to learn
• are between 15 and 18 years old (exceptions can be made for 14 and 19 year olds)

Now you have learned another way to make money from your personal home that will allow you to purchase a home of your choice and make money while living in your “dream home”.

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Making Money While On Vacation

Posted on July 4, 2014 by Maria Rekrut

Today’s Travellers are looking for ways to save money. Monthly or weekly rentals are common and are often equal in price to a three or four night stay at a comparable hotel or resort.

Vacation rentals offer much greater value than typical hotel rooms. Ranging in size from one bedroom to four or five bedroom vacation homes, with two full bathrooms, these vacation rentals are priced well below typical hotel rates.

Vacation Rentals offer more amenities and many of the vacation rental properties include other conveniences that the owners themselves use. Owners take good care of their properties since they stay there too.

Often times they clean the house or are vigilant when they get cleaning staff, therefore you know that the house has been well taken care of. There have been many times that I have gone to a Hotel to be disappointed by the cleanliness of the bathroom.

Vacation properties often times include free wireless internet, large TV’s, CD and DVD players,  music systems, game tables, BBQ’s and more are often found in the houses you will rent.

As a guest you have access to things like a private pool, hot tubs, saunas.  Vacation rentals are often found nearby lakes, golf courses, tennis courts, walking and cycling trails. Motels and hotels often times can’t compete with the amenities you will find in many vacation rentals.

You get more space, much more space than a hotel or motel could ever offer. A variety of sizes, styles and holiday homes types exist within vacation rentals. Units can range from studios to four or five bedrooms, sleeping up to 10 or more guests comfortably.

Vacation Rentals feature some of the most diverse and exciting amenities available. Guests can choose from budget conscious resorts to some of the most luxurious all-inclusive villas available.

Indoor pools are increasingly common, while outdoor pools can be found at nearly all vacation rental resorts.

Normally when you stay at a vacation rental it is all inclusive and at times that includes a self serve breakfast that you can enjoy in your pyjamas and you can eat at any time. Breakfast an be an all day event!!

So for you who are going on Vacation why not try out a Vacation Rental for a change.  Send in your comments and experiences to me. Happy Holidays to all.

 

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10 Tips For Vacation Rental Owners

Posted on July 4, 2014 by Maria Rekrut

1. Fill Your Rental Calendar With Last Minute Travelers

While most people rent vacation homes in advance, some wait until the last minute. You can position yourself to scoop up those travellers by making a few adjustments to your marketing and rental procedures. Then, you will make more money, as you will be able to keep your calendar full throughout the year.

2. Amenities for Golfers

Is your vacation rental located near a golf course? If so, you should make the most out of your location. Include golf amenities in your home so renters will be more likely to stay with you. By including certain amenities, you will be able to keep a full rental calendar.

3. Enhance Your Listing with a Virtual Tour

Vacation rental owners need to have the best listing possible. Part of providing a great listing is including a virtual tour. A virtual tour is a tour that is filmed and then put online so others can view it. There are many benefits to include.

4. Finding the Right Vacation Rental Management Agency

If you are a vacation rental owner that wants to use a management agency, you need to be sure you pick the right one. There are lots of agencies available that are competing for your business. You need to narrow down the prospects by examining each company.

5. Avoid Vacation Rental Bans

Bans prevent in some states and provinces, owners from renting their property to short-term guests. State and local governments, as well as home owners associations, can initiate vacation rental bans.

These bans are devastating to owners. However, they can be avoided. Those who follow a certain set of guidelines will form good relationships with the community, and thus be able to continue renting their property to guests.

6. Insure Your Vacation Rental Property

Your vacation rental property is an investment, and thus it is important to protect it. One of the best ways to protect it is with insurance. There are many different types of insurance for owners to consider before advertising their property to renters.

7. Lower Prices Mean Fewer Customers

The vacation rental industry is booming, and the boom has caused some owners to re evaluate their pricing strategy. They feel they have to lower their prices to remain competitive, when in fact lowering prices can lower their chances of renting the property. When vacation rental owners lower their prices, they fall victim to a variety of problems.

8. Increase Bookings in the Off Season

The off season presents some challenges to vacation rental owners. Business slows down a bit, and owners have to become more creative in order to keep their bookings steady. One of the best ways to make bookings in the off season is to market to couples.

9. Finding an Investment Property

Return on investment and location are important for investors who are buying vacation rentals. Investors want to make money from renters, and they want a property they can spend time at during their own vacations. Because of that, people have to be careful during the property selection process. They must find a home that meets their personal needs, as well as their business needs.

10. The Art of the Headline

The headline is one of the most basic, and yet most important, aspects of creating a vacation rental listing. It is essential for owners and managers to write a headline that is both compelling and informative. In order to do this, they must master some basic copy writing and research skills.

Happy Letting and Investing!!

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Timeshares The Good The Bad And The Ugly

Posted on July 4, 2014 by Maria Rekrut

Timeshares are based on the concept of fractional ownership in a property. You can purchase one month,then you own 1/12 of the unit. Other buyers will purchase the remaining fractions. When you purchase one week at a timeshare condominium each year, you own 1/52 portion of the unit.

 

There are two general programs:

  • Deeded – You purchase an ownership interest in the property.
  • Non-Deeded – You lease the right to use the property for a specific amount of time each year for a pre set number of years.

From there, the various ownership structures become more complex. Some properties operate on points systems. These are often referred to as “vacation clubs”. With these, you purchase a specific number of points that can be redeemed at a variety of destinations.

Some plans let you “bank” unused points. You can purchase a fixed week, which means that you own the right to use the unit during the same week each year, or you can purchase a floating week, which generally gives you the right to use the property during a predetermined period of time.

Timeshare properties can often feature larger and more luxurious accommodations than standard hotels and are generally located in desirable places.

The pitch timeshare sales people use to convince consumers to purchase billions of dollars worth of timeshares each year. How would you like to have a wonderful vacation in a beautiful location at a reasonable price? Would you like to repeat that vacation every year?

When you are standing in a beautiful condominium overlooking the perfect beach and sparkling blue water, it is easy to succumb to the sales pitch. Remember, timeshare salespeople are in the business of selling. But just because they tell you that you are getting a great deal, doesn’t mean that you really are.

Before you buy, take some time to research the property and talk to other timeshare owners. Don’t make your decision in haste and never let the salespeople rush you.

I would suggest that you go back to your home and think about it before you jump in and buy. Banks will not give you a mortgage to purchase timeshares.  People either pay for their timeshares by going into their saving’s accounts or use their lines of credit.

Look for my next article where I will discuss what owners can expect for their money when they invest in timeshares.

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Timeshares, Good Or Bad Investment?

Posted on July 4, 2014 by Maria Rekrut

A timeshare is not an investment. Investments are designed to appreciate in value, generate income, or do both. A timeshare is unlikely to do either, despite what the salesperson says. Thus, selling for a profit is an uphill battle considering you need to convince someone to pay more for a used unit and factor in all the fees you paid over the years.

The huge volume of used timeshares on the market, the appeal of buying new versus used, and the marketing muscle of the firms selling new timeshares all work against the idea that you will make a profit reselling your used timeshare.

A timeshare is not an investment, it’s a vacation. It’s also an asset that is likely to lose value over time. Ultimately, timeshares are like swimming pools, if you buy one, do so because you love the idea of owning it, not because you expect to make a profit.

If you do take the plunge, remember that you are buying a repeatable vacation. Just as spending $2,000 on a trip to an exotic beach is not an investment; neither is spending $50,000 plus maintenance fees on a timeshare.

The very nature of the sales process should be a hint about the reality of the issue and the hard sales techniques used by the sales people. Have you ever heard of a mutual fund, purchasing a house, or any other investment that offered you a free weekend in an exotic spot just for giving the product a try?

Like any major purchase, the decision to buy into a timeshare is a decision that requires careful consideration. It involves a large amount of money up front and considerable recurring costs. You should ask plenty of questions, be aware that you should know that the value of these timeshares is in their use as vacation destinations, not as investments.12-12-12-timeshare-300x214

 

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Vacation Marketing For Success

Posted on July 3, 2014 by Maria Rekrut

This article is for owners who have their own website for their vacation rental. If you don’t have your own website, hire someone to build it for you. If you can’t afford to hire someone, then have a friend make a site for you. The point is, in today’s market it’s important to have not only a regular website but also a mobile website.Did you know that mobile web usage is set to overtake desktop usage by the year 2014?

 

The first thing you have to do as a new vacation rental owner is to have a website built by an experienced webmaster who understands the importance of Social Media, SEO, and placement of Vacation Rentals on all major search engines. I highly recommend that you find a webmaster who has experience with building vacation rental websites and is knowledgeable with this form of business.

These days, with a bad overall economy, it is even more important to keep that revenue coming in even when you are not in your peak season. After having your website built, then you need to get down to the business of marketing your vacation rental website online.

Savvy marketing can be an excellent way to keep your property fully booked. Fortunately, there are lots of options for vacation rental owners to choose from when it comes to selecting an online vacation rental advertising medium.

That can be a good and a bad thing – just because a vacation rental website exists, that does not mean that paying an annual fee to have a listing on that website is going to lead to inquiries and bookings for the owner. As with many things, there are lots of dependencies that will determine success.

The higher the vacation rental website is on that list, the better you are likely going to do by paying them for a listing on their vacation rental website. Check where that particular vacation rental website you are considering advertising on shows up in Google rankings for searches that a renter is likely to enter. For example, if you had a vacation rental for rent in New York City, see which vacation rental website comes up first for a Google search of “new york city vacation rentals“.

After clicking on the link from the Google search results that takes you to a particular vacation rental website, take a look at how many vacation rental properties show up on that page that Google took you to.

In the vacation rental website business, we call that a “city index page”. Many vacation rental websites will charge more to be closer to the top of the page.The closer to the top your property shows up on the city index page, the more page views and leads you are going to get. Many vacation rental websites will charge more to be closer to the top of the page. This will lead to more inquiries and bookings for you, but as a business owner, you have to weigh that against how much more that will cost.

Marketing is another skill that all vacation rental owners will have to build skills in, the business of owning a vacation rental is a lot more complicated than it was 20 years ago, as there’s a lot more competition to deal with. Ongoing education and savvy marketing will put you ahead of your competition.

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Vacation Rentals – Getting Biggest Bang For Your Bucks

Posted on July 3, 2014 by Maria Rekrut

This is a concept that you have to understand. Doing all the right things can really lead to more bookings at better prices. But I would enter the market at or below the market, and then work my way up the next season. Being booked all year at reasonable prices is better than being half full at higher prices.

If you are new to this market or your vacation rental is just being listed for rent and you have no repeat business, we suggest you come into the market on the lower end. That does not mean you are giving your rental away. You have to do some research of your competition.

Let’s  say you have a 4 bedroom cottage.   There will be plenty of your neighbors’ listings to view. So finding a unit that is similar online should not be a problem.  You find plenty of comps, they are priced at about  $2700 to $3,500  during the peak season. They seem to be doing pretty well. You can view the online calendars to see how they are booked up. But do not rely on those 100%. Many owners do not keep them up to date.So this is the first year for your unit. You have a few months till summer and you have no repeat business as this is a new purchase for you. I would price your unit at $2495 for the peak weeks. This will look like a deal to most prospects, you can start taking bookings now and build up a client list.Pricing your vacation rental is one of the first steps you need to take to be successful. If you are too low, you will be full but lose out on some income. Too high and you could miss out on bookings and have a vacant unit. So what are you to do?If you are doing the proper amount of advertising, you should have no trouble getting some business. Here are some other things you need to consider to get a competitive advantage on your competition. By using online reservations and online credit card processing you already have an advantage in the vacation rental by owner world.   So you will be able to take bookings faster and easier than the other vacation rentals listed online.

This means you are the path of least resistance. More people will be attracted to book with you since it is easy, fast and convenient. Who wants to wait 7-30 days to mail documents back and forth? They want to book a vacation now!

Add this to a great slide show of your vacation rental, and a Google map showing the exact location.   So now you go into your next season with a list of past guest, you email them about the new season and they want to come back to stay with you since it was easy, they loved your rental and you stayed in touch. Now you can raise your prices to at or above the market. Now your rate would be at $2,795 per week in the prime time.

Using all the tools that you need can make a huge difference. If your competition does not put the time in that you do, you will win.

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Cruising Around The World – Your Next Vacation Rental Investment?

Posted on July 3, 2014 by Maria Rekrut

I can see in the not so far distant future, that you’ll be able to live and cruise year round.  I predict that you’ll be able to buy “Time Shares” on Cruise ships. Baby Boomers who want a carefree life style and travel the world, not having to worry about their safety or worry where their next meal or sleeping arrangement, will be the target market.

 

Cruises come in all shapes and sizes, giving you tons of variety. One of the best features of a cruise is the flexibility it offers. You can literally go to a travel agent and name your port, or at least a general area from which you want to leave. In the United States alone, cruises leave from Alaska, Florida, California, and a number of other states. Caribbean cruises are popular, of course, but you can also find cruises in Europe, Africa and other countries throughout the world.

A cruise is super easy to plan, beyond budgeting. While some may find this a bit limiting, most enjoy the stress-free idea of not having to plan a vacation – they do the planning for you!  You will find that most cruises include meals and entertainment, but on some, you have to pay for drinks and shore excursions.

Instead of having to put together an itinerary yourself, you just “cruise” along, literally. The company running the cruise determines the entertainment, you don’t have to leave your cruise ship to enjoy a variety of activities,  as well as set the course, taking you to various ports of interest.

Location is not the only thing that is flexible. With a cruise, you can also be flexible about the amount of time you want to spend on vacation. Some cruises are very long,  lasting 10 to 14 days or longer ranging with a month to 3 months.

On the other hand, most cruise lines offer shorter 3-day cruises for those with lower budgets or those who do not want to spend their entire vacation on a ship. You can also find short day cruises, so if you are going on vacation near a coast, you might want to look into an evening cruise, daylong sightseeing cruise, or other short tourist option.

So is this the way of the future?  Retirement couldn’t be more attractive than being on a Cruise Ship. Investing in “vacation rental” properties like bed & breakfasts, time shares, short term housing and perhaps in the near future, cruise ship time shares are great alternatives to add to your real estate portfolio.

Happy Investing

Maria Rekrut

 

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How Marketable Is Your Rental Property?

Posted on July 3, 2014 by Maria Rekrut
The vacation rental industry has turned into an enormous billion dollar market that has taken shape and has been evolving world wide over the past few decades. Online services have followed, assisting vacation rental property owners to now effectively market their vacation rental property online.

 

In addition to online services that simply allow you to list your property on their Website for people to inquire about, entirely new companies have emerged focused around the vacation rental industry.

 

Here are 3 ways to determine if your property is a suitable Vacation Rental – While there are many vacation rentals on the market today, it certainly helps if your property has unique features.

 

1.  It is important to determine whether or not your property is marketable and desirable.
You should ask yourself the following questions:  Is my property up-to-date enough and have the amenities that many travelers are looking for such as high-speed internet, jacuzzi tubs, etc.  Is my property in a frequented geographic area?  Is my property’s location desirable (i.e. on the water, great views, or close to landmarks such as theme parks.
2.  Prepare a Description of the Property, Amenities, nearby Activities and Bedroom/Room Layout
It’s very critical to provide potential guests with accurate information regarding your property. You’ll use this information in marketing your property on various Websites throughout the Internet. You’ll need to put together a descriptive paragraph or two regarding the property, a list of the amenities & activities, and room/bed layout.
3.  Create a System for Providing a Key or Entry Instructions to Guests
If you are going to rent your property as a vacation rental, you will need to somehow provide a key to your guests. Most property owners generally tend to setup a lockbox on their property.
You can use property agents to provide the key or simply meet the guests at the property themselves to walk through the property and provide entry instructions, keys, and other property details.
Vacation rental owners are still  renting out their rentals. There is an element of satisfaction in preparing your own property for rental, marketing it, then seeing the fruits of your labor when the rentals actually come pouring in. While this is not for everyone, people with time on their hands generally like to take the reigns when it comes to renting out their own properties.
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