7 factors that reduce the value of vacation rentals

Why can the value of a vacation rental decrease?

The vacation rental market is one of the most dynamic and competitive sectors in the tourism industry. Vacation rental owners are constantly looking for ways to increase the value of their properties to attract more guests and receive a higher return on their investment. However, it is also important to understand the factors that can reduce the value of a vacation rental, which can derail a well-thought-out business plan. In this article, we will explore some of the factors that can negatively impact the value of a vacation rental property. We also talk about these to mitigate the effect of these factors, so the value of a vacation rental can be increased.

7 factors that reduce the value of vacation rentals

1. Poor location

Location is one of the most critical factors in the value of a vacation rental. If a property is in an unattractive or inaccessible location, it is likely to attract fewer guests and therefore lose value over time.

To mitigate this, it is wise to carefully research the location before purchasing a property. Consider things like the demand for vacation rentals in that specific area, how easy is it to get to, etc. In addition, you can improve the attractiveness of your property in less desirable locations by investing in site improvements such as landscaping or renovations.

2. Poor maintenance

A property that shows obvious signs of lack of maintenance or is in disrepair will quickly lose value. Guests are looking for clean, well-maintained properties for their stay.

Keeping the property in top condition and making regular repairs and renovations can help maintain or even increase its value. In addition, a well-decorated and furnished vacation rental can attract a wider audience and allow you to charge higher rates.

3. Incorrect pricing

Setting the right rental price is essential, mainly so that the investment can be recouped. A price that is too high can drive away potential guests, while a price that is too low will mean that you will not receive an adequate return. Ideally, conduct market research and compare rates with similar properties in the area.

Tracking occupancy rates and guest reviews can also help you adjust prices effectively, but the main thing is undoubtedly to use a dynamic pricing tool to avoid all this work. In Smoobu you will find integrated the best smart pricing applications, such as Smartpricing, Pricelabs, Beyond or Wheelhouse

4. Bad reviews and online reputation

Online reviews and ratings have a significant impact on guests’ decision to book a property. Bad reviews and a bad reputation can decrease the value of a vacation rental significantly. As a host, you should pay attention to guest reviews, respond to comments professionally, and take steps to address any issues that arise during a guest’s stay.

5. Lack of amenities and services

Additional amenities and services can significantly increase the value of a vacation rental. Guests appreciate features such as a swimming pool, a hot tub, a fully equipped kitchen, a washer, and dryer, high-speed Internet access, and flat-screen televisions. The more amenities the home offers, the more attractive it will be to guests.

It is also important to consider additional services, such as regular cleaning, hassle-free check-in and check-out, and 24/7 availability of assistance for guests. These services can make a difference in the guest experience and perceived value.

6. Quality of photos and descriptions

First impressions are essential to attract guests. High-quality photos and a detailed, accurate description are critical to capturing the attention of potential travelers. If the photos are blurry, unattractive or do not clearly show the property, travelers are likely to overlook your rental in favor of better-presented options.

In addition, it is essential that the description of the amenities and features of the vacation rental be honest and accurate. Exaggerating or making false claims about amenities, equipment, or other external factors can lead to disappointments and negative reviews, which will negatively affect the value of the vacation home on booking platforms.

7. Flexible policies

Cancellation and other booking-related policies can also affect the value of your vacation rental. Offering flexible cancellation policies can attract more guests, as it gives them peace of mind knowing that they can change their plans if necessary. On the other hand, strict cancellation policies can deter travelers and make your vacation rental less attractive.

Therefore, study the types of cancellation policies offered by booking portals, such as Airbnb or Booking.com, in order to choose the one that will bring you the most benefits. Positive feedback will go hand in hand with better reviews and more bookings, both early and last minute.


In summary, maintaining and increasing the value of a vacation rental involves a combination of factors ranging from location and property condition to pricing and policies. By paying attention to these factors and adjusting your approach as needed, you’ll find it much easier to keep your vacation rental in demand and highlight its full appeal to travelers, ultimately allowing you to maximize revenue over time. Don’t forget that the vacation rental market is dynamic, and adapting to changing guest expectations is essential to succeed in this business.

By using a channel manager like Smoobu, that combines all the features for a better vacation rental management, you will be able to offer a better service, save time and money and increase the intrinsic value of any vacation rental. What are you waiting for to grow your business even more?

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