If you recall back a few months ago, we discussed the formula for calculating your revenue on a short term rental (STR). Just a refresher, check the graphic below!
After reviewing this graphic that I've put together, it makes sense that your annual revenue is equal to your Average Daily Rate or "Nightly Rate" (ADR) multiplied by your occupancy rate. If you can maximize your occupancy, while increasing your nightly rate, you will ultimately recognize higher revenue on your STR!
There are so many levers to pull to accomplish this, but for now, let's focus on the micro-topic of dogs and if you should allow them at your STR!
I'll preface this discussion by sharing that we 100% allow dogs at all of our properties. We don't do this because we are dog lovers (we trully are dog lovers and have 2 Great Danes of our own), but we do it because it supports our belief and our goal of maximizing occupancy and increasing revenue!
But how?....
Think about this - it could be argued that a large majority of the population owns some form of pet and if they didn't before covid, then they may have joined the club once they started working remotely. Knowing this, we specifically target guests that are dog owners.
But why?...
Well... for any guest that brings their dog(s), we charge an additional 1 time $200 cleaning fee. We also hold our rates alittle bit higher than those homes that do not allow for dogs. With so many guests now owning a dog, many guests specifically look for homes that will allow them to bring their furry family member.
How has this worked out for us?
Fabulously.. We do have some restrictions in that we don't allow puppies... so that aside, we often find that the dogs are usually very well behaved and the guests almost always picks up after their pets (we share automated reminders asking guests to pick up after their pet throughout their stay).
Funny fact - we find that kids (ours included!) are far messier than most pets...
And with over 250 stays under our belts, we never had anything seriously damaged and we've never had to cancel on future guests due to items being broken or destroyed by pets.
Simply put, in an era where there are loads of competing homes for guests to pick from, it is CRITICAL that you stand out and that you appeal to the widest range of guests possible. Allowing dogs not only broadens your audience, but it puts extra money in your pocket and helps keep your occupancy rate high!
So with that, if you were on the fence about allowing pets, then my suggestion is to live on the edge a bit and go for it...you can always ask guests about their pets and get a feel for if they will be a good fit for your home before accepting their booking.
To have your STRs questions answered, email your question to thefivestarcohost@gmail.com!