The 7-Day Rule for Vacation Rentals: Are You Leaving Money on the Table?
As a homeowner or property management company, you know how important it is to ensure that your vacation rental properties are booked efficiently and that your guests have an enjoyable stay. One of the most important policies to have in place when it comes to vacation rentals is the 7-day rule. In this blog post, we’ll explore what the 7-day rule is and why it’s crucial for your vacation rental business.
So, what is the 7-day rule?
The 7-day rule is a policy that requires a minimum 7-night stay for vacation rentals. This policy is in place to help ensure your guests have enough time to fully enjoy their vacation rental and all your property has to offer. It also helps to streamline your business operations by reducing the frequency of cleaning, maintenance, and turnover between guests.
Why is the 7-day rule important for your vacation rental business?
- Maximizes Occupancy
- Reduces Operational Costs
- Enhances the Guest Experience
- Simplifies the Booking Process
By having a minimum 7-night stay requirement, you can maximize the occupancy of your vacation rental properties. This means fewer gaps in your booking calendar and more revenue for your business.
With longer stays, you can reduce the number of turnovers required between guests. This means less cleaning, maintenance, and inventory management, which can save you time and money.
Guests who stay for a week or more have more time to explore the local area and enjoy your property's amenities. This can lead to a more enjoyable experience for your guests and increase the likelihood of positive reviews and repeat business.
By having a minimum stay requirement, you can streamline the booking process and reduce the number of inquiries from guests who are only looking to book for a night or two. This can save you time and help you focus on more valuable leads.
- Improves Your Bottom Line
By maximizing occupancy and reducing operational costs, the 7-day rule can help to improve your bottom line and increase your profitability.
Caveat or Compliment: Shoulder & Off-Season Months Where Not Many 7-Day Reservations Are Possible
With a 7-Day rule in place, you are set to start bringing more money in and increase your occupancy, but what is an easy way that you can guarantee longer stays in your properties? By offering monthly stays, of course!
For example, the winter months in Destin, Florida have occupancy rates of only 40% compared to the peak season rates of 89%, according to AirDNA. The same exists for Phoenix, Arizona where peak season occupancy rates are 78% while the off-season rates are only 51%.
One solution for filling these open nights is offering monthly rates to encourage guests to stay for 30 days or more instead of only 4-6 nights.
By offering longer-term rentals, you can attract guests looking for a more extended stay and willing to pay a premium for it. This can help you maintain a consistent revenue stream throughout the year, even during off-peak seasons.
By listing your vacation rental properties on websites focused on longer stays, such as Monthly Rentals By Ownerand American Snowbird, you can tap into a whole new market of travelers looking for longer-term stays. Monthly Rentals by Owner is a platform specifically designed for monthly vacation rentals, making it easy to connect with guests who are looking for a month or more in your area.
When you list your properties on Monthly Rentals by Owner, you can set your own rental rates, availability, and rental terms because the booking site connects guests directly to you and your website. This means that you can still enforce your 7-day rule while also attracting guests who are looking for longer-term stays. Additionally, by offering monthly rentals, you can reduce the number of turnovers required between guests, further reducing your operational costs.
With over 20 years of experience in the vacation rental industry, Monthly Rentals by Owner is a trusted and reliable platform for property management companies looking to expand their offerings. By combining the 7-day rule with offering monthly rentals, property management companies can keep their vacation rental properties occupied and maximize their revenue potential.
Getting Your Business Ready for the 7-Day Rule
If you’re interested in implementing the 7-day rule in your vacation rental business, you’ll need to update your rental agreements, making sure that your rental agreements include a minimum stay requirement of 7 nights. It will also be important for you to adjust your pricing strategy, incentivizing longer stays. For example, you could offer a discount for guests who book for a week or more.
Once you begin implementing the 7-day rule in your business, you will want to clearly communicate the minimum stay requirement to your guest through your website, booking platform, or via email. Keep an eye on your occupancy rates and adjust your pricing strategy as needed to ensure that your properties are fully booked.
The 7-day rule is an essential policy for vacation rental businesses. By requiring a minimum 7-night stay, you can maximize occupancy, reduce operational costs, enhance the guest experience, simplify the booking process, and improve your bottom line. If you’re interested in implementing the 7-day rule in your vacation rental business, follow the steps above to get started, and contact Monthly Rentals by Owner to get your properties listed for monthly rental listings today.
