The short-term rental space is constantly evolving, and new trends are emerging all the time. From the rise of vacation rental management companies to the increasing popularity of alternative accommodations like tiny homes and yurts, there's a lot to keep up with in the vacation rental market. Here are just a few of the key trends to watch in the short-term rental scene for 2023.
- Vacation Rental Management Companies
One of the biggest trends in the short-term rental space is the rise of vacation rental management companies. These companies take care of all the details of renting out a property, from listing the property online to handling bookings and guest communications. They also handle things like cleaning and maintenance, which can be a big relief for property owners who don't want to deal with these tasks themselves. Back when I first started in the vacation rental market, the vast majority of STR managers were small local mom and pop companies. They were centralized in tourist destinations and they’d make guests come to their office to pick up physical keys to their rentals. Over the past decade we’ve seen a dramatic shift in the type of STR managers available. There are huge national companies that manage STRS all over the country, and recently we’ve seen a rise in boutique management companies at the local level.
2. Alternative Accommodations
Another trend to watch is the increasing popularity of alternative accommodations. Tiny homes, yurts, and even treehouses are becoming increasingly popular as short-term rental options. These unique accommodations offer guests a one-of-a-kind experience and can help property owners stand out in a crowded market. These unique destination experiences aren’t just great for guests, they can make a pretty penny too. With relatively low entry costs, and the ability to generate $300 per night and upwards you can make a significant profit investing in a “glamping play”.
3. Smart Home Technology
Smart home technology has been significantly changing the short-term rental space. From keyless entry systems to smart thermostats, these technologies can make managing a short-term rental property much easier. They can also add an extra level of convenience for guests, who can control things like temperature and lighting with the touch of a button. We anticipate more and more smart home technology to come to market in 2023, and would not be surprised to see more vacation home specific products.
4. Increased Competition
As the short-term rental market continues to grow, competition is becoming increasingly fierce. This means that property owners need to find ways to stand out and attract guests. One way to do this is by offering unique amenities or experiences, such as a pool or hot tub, unique mural, or providing guests with personalized recommendations for things to do and see in the area. Now more than ever, it’s the time to make sure you nail the details and create a stand-out airbnb listing.
As short-term rentals become more popular, many cities and towns are beginning to legalize and regulate them. This can be a good thing for property owners, as it provides a framework for operating a short-term rental business and minimizes competition. However, it also means a lot of red tape, so it's important to stay informed about the laws in your area. We wouldn’t be surprised to see some sweeping legislation on the state level on the horizon. This would simplify the process of identifying short term rental investments for STR buyers, and make compliance more transparent.
This post originally appeared on atxstrs.com
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