Will adding a Hot Tub increase my Northern Michigan Vacation Rental’s Revenue?

Why Hot Tubs Can Increase Airbnb Revenue in Northern Michigan

If you own a vacation rental in Northern Michigan, a hot tub can be one of the better investments you make to increase your property’s revenue potential.

We’re not saying every property needs one. But when the market and competitive set make sense, a hot tub can help differentiate your property, increase demand and generate more bookings during the shoulder and winter seasons.

Start With Your Competition

Before spending the money, do a simple exercise in the Airbnb app.

Search for properties similar to yours—same general location, bedrooms, guest capacity and price range.

Then apply the hot tub filter.

See how much your competitive set shrinks.

If you’re looking at 100 comparable properties and only 15 have hot tubs, you’ve potentially identified a significant competitive advantage.

If nearly every comparable property has one, then a hot tub may simply be necessary to remain competitive.

If you use AirDNA, you can do the same analysis by looking at the amenities offered by properties in your competitive set.

Don’t guess. Look at your market first.

This is the same approach we take when evaluating a property’s revenue potential. If you’re interested in how we look at the bigger picture, read our guide on how to maximize your Northern Michigan vacation rental’s revenue.

Hot Tubs Can Help Fill the Shoulder and Winter Seasons

Northern Michigan has strong summer demand, but the bigger opportunity for many vacation rentals is increasing bookings outside of peak summer.

A hot tub gives guests another reason to choose your property during fall, winter and early spring, when occupancy can be harder to maintain.

That can help turn a highly seasonal property into a more consistent four-season rental.

And when you’re evaluating a Northern Michigan vacation rental as an investment, seasonality should be part of the analysis from the beginning. We cover more of that in our article on buying a Northern Michigan vacation rental.

Guests Can Search for Them

Hot tubs are also valuable because guests can specifically filter for them on Airbnb.

A guest searching specifically for a hot tub can immediately narrow their options to properties that offer one.

If your property has a hot tub and many of your competitors don’t, you’re potentially putting your property in front of a more targeted group of guests.

That’s why we pay attention to amenities that affect both listing visibility and booking decisions.

They’re Easier to Manage Than You Think

Maintenance is one of the biggest concerns we hear from owners.

Yes, hot tubs require maintenance. But they’re not nearly as difficult to manage as many people assume.

With a consistent process, routine maintenance is straightforward. Your cleaners can also be trained to handle basic turnover tasks, including checking the water, cleaning the tub, inspecting the cover and reporting problems.

You don’t necessarily need to make a separate trip to the property after every guest.

The key is having a system.

Look at the Investment, Not Just the Cost

The question isn’t simply:

“How much does a hot tub cost?”

It’s:

“What can a hot tub do for this property’s revenue?”

Depending on the market, it may help increase occupancy, nightly rates, shoulder-season bookings and winter demand.

But those potential gains need to be weighed against installation, electricity, maintenance and replacement costs.

There is no universal revenue increase for adding a hot tub. The competitive market should drive the decision.

Don’t Add Amenities Just to Add Them

This is something we believe strongly.

The goal isn’t to give your property every amenity imaginable.

The goal is to identify the improvements that will make your property more competitive and generate the greatest return on investment.

For some Northern Michigan properties, a hot tub will be one of those improvements.

For others, something else may make more sense.

Do the competitive analysis first. Then run the numbers.

At Water & Woods Vacation Rentals, that’s how we approach revenue management. We look at the property, competitive set, pricing, amenities and market demand to identify opportunities to improve performance.

If you’re considering turning a Northern Michigan property into a vacation rental, make sure you’re also looking at the legal side of the investment. Our guide to Northern Michigan short-term rental regulations covers some of the issues buyers need to investigate before purchasing.

Thinking About Adding a Hot Tub?

Before you spend the money, do the exercise.

Search Airbnb as if you were a guest looking for a property just like yours. Then filter for a hot tub.

Look at how many comparable properties remain.

If only a small percentage have them, you’ve potentially found an opportunity to differentiate your property.

Then run the numbers.

That’s the approach we take at Water & Woods Vacation Rentals. We look at the property, competitive set, market demand, pricing and amenities to determine where improvements may have the greatest impact on revenue.

If you’re considering turning a Northern Michigan property into a vacation rental—or you’re already operating one and want to increase its revenue potential—we’d be happy to take a look.

Water & Woods Vacation RentalsNorthern Michigan Vacation Rental Management(616) 836-2303waterandwoodsvacationrentals.com