6 Common Pitfalls New Holiday Rental Owners in Bali Ought to Avoid
Bali Nirmana Property has been in the business of connecting savvy property investors with the right investment properties since 2007 and along the way we have witnessed tremendous success stories, along with a handful of stories of folks whose expectations, sadly, were not quite met. What happened? We would like to share our experience and our observations in an attempt to shed some light on some of the more common pitfalls that can sneak up on us when we are not as diligent as we might ought to be. While marketing your Bali villa for holiday rental is not brain surgery, neither is it a “set it and forget’ proposition either.
Think back a few years. Who would’ve thought you’d be a Bali holiday rental owner someday in the future?! Well, you’ve made it this far – all the way to ‘the island of the Gods’ ready to welcome holidaymakers from all over the world to come and stay in your fabulous villa. Great! However, many new Bali Holiday rental owners are new to the hospitality world and to live up to the full holiday rental potential of your villa, here are 6 common mistakes to avoid:
1. Underestimating your competition and expecting unrealistic conversion rates:
One must never forget the competition is high! Bali is only a small island but it is immensely popular and there are thousands of holiday rentals, especially in the touristic areas such as Seminyak, Canggu and Ubud. Travellers have plenty of options and so they can afford to be picky, leading to fewer actual bookings. This is why it is important for your Bali property to stand out from the competition in every sense of the word. It is very important to stay updated on your property’s conversion rates. What’s the going rate for a one-night villa stay in your area of Bali? If you lose track of rates or aim too high, you’ll lose business!
2. Getting frustrated with slow bookings
All holiday rental owners have slow periods and especially for those new to the Bali villa rental business, it can be frustrating to see nothing happening. However, we must remember that holiday rental marketing is not an activity but rather a culture. You have to spend time building your portfolio – it will pay off in the long run. In the meantime, you can use handy tools like Google Adwords or upgraded listing packages to stay in business.
3. Stop spending money on marketing
“….there are two times when it is wise to advertise; when business is good, and when it’s not”
Whether the business is going either very well or very poorly, a common mistake is to stop spending money on marketing. However, this is the last thing you should do! Just like the maintenance of your Bali villa, you need to keep investing in marketing in order to keep bookings coming in. No matter good or bad times, marketing your property is essential! Calculate it in your monthly spending and schedule.
4. Postponing the important task of building a website for your Bali property
It is important to have a website for your Bali property up and running. Your website’s age is one of the most time-sensitive marketing techniques. The longer your Bali villa has an online presence, the better it will rank organically in Google searches (resulting in more bookings!).
5. Using dependence channels only
It is great to have a large marketing portfolio. However, it is not so great to have it solely consist of pay-as-you-go platforms such as listing sites (Airbnb, Bookings.com, etc), Google Adwords or agents. What can you do? Make your own blog, send out newsletters and invest in other email marketing – this hard work will pay-off down the line. You should never depend on 1 marketing platform only – if it goes down, you are out of business.
6. Using amateur photos
We can’t emphasize this enough – do not, in any case, skimp on the photos of your Bali Villa! Really – you need to hire a professional photographer to take professional property photos of your villa! Visuals are the main lead in getting your property booked and amateur photos just won’t do (especially not in Bali where competition is high). Hiring a professional photographer may be expensive but without good photos, you are lost in the dark! In the end, your investment in good property photos will pay itself back!
As more and more investors pour into Bali looking to get in on the investment property gold rush that is on offer, Bali Nirmana Property will continue to offer practical solutions to the obstacles that are bound to pop up. Self-managing your investment property in Bali can be a highly rewarding experience, both financially and otherwise as well. There is a unique joy in hosting a family that is new to Bali as their eyes open in wonder at all the amazing opportunities that await them here in our little slice of paradise. The days of simply providing a roof over your guest’s head and a bed to sleep are slipping away. Today’s market is all about having a positive impact on the user’s experience. This article lays the foundation to help keep your asset digitally visible and attractive. Future articles will address enhancing your guest’s experience.