Becoming a VRBO Owner: A Complete Guide to Success

What is VRBO?

VRBO is an online platform that allows homeowners to rent out their properties to vacationers. It is part of the Expedia Group, which also owns other popular travel brands. Unlike traditional hotels, VRBO focuses on short-term vacation rentals, offering properties ranging from homes and condos to villas and cabins. It has become a go-to platform for travelers looking for home-like accommodations with added privacy and space.

How to Become a VRBO Owner

1. Evaluate Your Property: Before listing your property on VRBO, it’s essential to assess whether it's suitable for vacation rentals. Consider the following:Location: Is your property in a desirable tourist area? Proximity to beaches, parks, ski resorts, or city attractions can increase its appeal.Amenities: Ensure your property has the necessary amenities to cater to guests, such as a fully equipped kitchen, comfortable bedding, and entertainment options.Condition: Make sure the property is in good repair, clean, and well-maintained. Small improvements, like fresh paint or updated furniture, can make a significant difference in attracting guests.
2. Set Your Pricing: One of the most important factors for a successful VRBO listing is setting a competitive price. Research other similar properties in your area to gauge the average rates. Consider:Seasonal Pricing: Prices should vary depending on the time of year. Higher demand during peak seasons (e.g., summer or holidays) can justify a higher price.Extra Fees: Be transparent about cleaning fees, security deposits, and any other additional charges. These can impact guest decision-making.Length of Stay: Offer discounts for longer stays to attract guests who may want to book for a week or more.
3. Create an Attractive Listing: Your VRBO listing is your property's first impression, so it’s important to make it stand out. Here’s how:High-Quality Photos: Use professional-quality photos that showcase your property in the best light. Highlight the key features, such as scenic views, spacious living areas, or luxurious amenities like a hot tub or pool.Compelling Description: Write a clear and engaging description of your property. Focus on what makes it unique and mention any special amenities that would appeal to potential renters. Be sure to also mention nearby attractions and activities.Accurate Details: Ensure the number of bedrooms, bathrooms, and overall capacity are correct. Provide information about the property's layout and any restrictions (e.g., no smoking, pet policy).
4. Register and List Your Property on VRBO: Once you're ready, sign up for a VRBO account and list your property. During this process, you'll provide all the necessary information, upload your photos, set pricing, and agree to VRBO's terms and policies. It’s also a good idea to complete your profile and offer a few personal touches to create trust with potential guests.

Managing Your VRBO Property

Once your property is listed, your role as a VRBO owner involves managing bookings, communicating with guests, and maintaining the property. Here are some key tasks to focus on:

1. Communication with Guests:Respond Quickly: Prompt responses to inquiries or booking requests can improve your listing’s visibility and build trust with guests.Be Clear About Expectations: Clearly outline house rules, check-in/check-out times, and any special requirements. This can help reduce misunderstandings and enhance guest satisfaction.Customer Service: Provide excellent customer service by being friendly, accommodating, and available for guests who have questions or need assistance during their stay.
2. Property Maintenance:Regular Cleaning: Ensure the property is cleaned and stocked with essentials between guest stays. This includes fresh linens, toiletries, and kitchen supplies.Repairs and Upkeep: Regularly inspect the property for necessary repairs. Address any issues immediately to avoid negative reviews.Professional Cleaning Services: If you’re too busy to clean the property between guest stays, consider hiring a professional cleaning service to ensure high standards of cleanliness.
3. Managing Bookings and Calendar:Booking System: VRBO provides a user-friendly booking management system that lets you track reservations, cancellations, and payment status. Keep your calendar updated and mark periods of unavailability to avoid double bookings.Instant Book: VRBO offers an Instant Book feature, allowing guests to book immediately without needing your approval. This can increase bookings but also requires you to be flexible with availability.Cancellation Policies: Choose a cancellation policy that suits your needs. Flexible policies attract more bookings but may result in more cancellations. Stricter policies can offer protection against last-minute cancellations but may deter some guests.

Maximizing Earnings as a VRBO Owner

1. Optimize for Search Results: Just like any online platform, VRBO’s search algorithm ranks properties based on various factors, including the quality of your listing, reviews, and booking history. Here’s how you can improve your ranking:Keep Your Calendar Updated: Frequent updates to your availability can help boost your listing’s visibility.Encourage Reviews: Positive guest reviews are essential for attracting future renters. Always ask guests to leave a review and respond to them professionally.Offer Special Deals: Use VRBO's promotional tools to offer discounts for early bookings, repeat guests, or longer stays.
2. Seasonal Offers and Packages: Take advantage of peak seasons by offering special deals and packages. For example, consider creating a romantic getaway package with wine and flowers or offering discounts for extended stays during off-peak times.
3. Upgrade Your Property: Invest in upgrades that enhance the guest experience and add value to your property. Some ideas include:Upgraded Appliances: Modern, energy-efficient appliances can increase the appeal of your property.Outdoor Features: Adding a hot tub, firepit, or outdoor seating can significantly increase your property's appeal.Smart Home Features: Installing smart locks, thermostats, or lighting can make your property more convenient and attractive.

Legal and Tax Considerations for VRBO Owners

1. Licensing and Permits: Depending on your location, you may need a business license or short-term rental permit to rent out your property legally. Check local regulations to ensure you comply with zoning laws, tax requirements, and other rules specific to short-term rentals.
2. Taxes: Rental income from VRBO is taxable, so you must report it to the IRS. Keep records of all income and expenses related to your rental, such as maintenance, cleaning fees, and insurance costs. You may also be eligible for deductions related to depreciation, repairs, and property management.
3. Insurance: Traditional homeowners insurance may not cover rental activities. Consider purchasing short-term rental insurance or a comprehensive insurance plan that includes liability coverage, property damage, and guest injuries.

Conclusion: Is VRBO Right for You?

Becoming a VRBO owner can be a lucrative opportunity, especially if you have a property in a high-demand location. By following the right steps—setting competitive prices, providing excellent service, and maintaining a high-quality property—you can create a successful vacation rental business. However, it requires time, effort, and commitment to ensure that your property stays in top shape and your guests have a positive experience.

Before you dive in, make sure to research your local market, understand the costs involved, and consider the tax implications of renting your property. With the right approach, VRBO can be an enjoyable and profitable venture that provides both financial rewards and the satisfaction of hosting travelers from around the world.