Diversifying one’s source of income is a fast-rising trend in this modern world. Since the covid-19 pandemic, many Individuals have shown significant interest in rental services,
especially short-term rentals for tourists and local travelers who seek comfortable and affordable places to stay for a while.
The short-term rental industry has experienced remarkable growth over the years. Several companies assist in the growth of the industry by providing investment properties for Individuals who pick an interest in STR.
However, before venturing into short-term rentals, there are some crucial market insights that are essential for the growth of your business. Techvestor provides information on the evolution of short-term rentals. Not only that, techvestor data offers numerous statistical insights on rental pricing, traveler demands, trends, and more, which are important for short-term rental Investment.
It’s been noted that travelers prioritize value and comfort, as much as they would affordable rental options. However, In this article, we will explore some of the recent trends in these resort-dwelling units to aid investors and property owners, stay up to date.
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What Is Short-Term Rental?
Short-term rental(STR) is the lease of any residential home unit or apartment for a specific short period. Basically, such rentals last for not up to 30 days but this is dependent on the state and area in which the rental home is located. Short-term rentals offer travelers a personalized experience, unlike hotels, with a variety of good options to choose from.
Now, Imagine travelers embarking on a long summer trip only to arrive at their proposed destination, possibly at night and they find out that most of the well-rated hotels are booked.
And with family? They will need a place that feels like home, where they can all move freely and be themselves without the interruption of other people. They may also want a more local and authentic experience to feel more at home like the locals of the area. This is where the short-term rental Investment comes in to be of assistance.
However, owning or managing a resort involves more than just handing over the keys to the occupants and giving them a tour of the building. It also involves ensuring that the rental meets the most common trends which your occupants will be on the lookout for.
The industry keeps evolving and you should ensure that you meet up with the trends and your rentals are intact as well, with rules and regulations being aligned with as stipulated by the area in which it is designated and what to expect in time to come.
5 Possible Short-Term Rental Trends For The Nearest Future
Below are a few traves every short-term rental investor, manager, and property owner should be on the look for.
Enhanced Use Of Technology:
The world is rapidly becoming a more technology-inclined landscape. Several work and daily activities are in one way or another influenced by technology and short-term rentals are not left out.
Technology plays a vital role in the short-term rental industry, with most of its functions centered around online booking platforms. This comes in handy for travelers as they can easily access the apartment and make reservations online without necessarily visiting the place beforehand.
Another vital aspect of technology in this industry is smart home technology and virtual reality. All these work hand in hand to alleviate the stress of operation and marketing for managers and owners of these rentals.
Technology keeps evolving and providing innovations to help virtually all aspects of life to perform with ease. Investors, owners, and managers of these rentals must be on the lookout for recent technological advancements which they can adopt in their operations.
Increase of Regulations:
Over the years, there has been an increasing push to regulate the short-term rental Investment sector. Some of these regulations curb the use of STR in some areas and this may not be favorable to you if you invest in a rental in those places.
For example, a new regulation that bans all operations of STR in single-family residential zones has been implemented in Dallas. More regulations such as housing availability, and safety issues are bound to come up as more cities and towns feel the impact of short-term rentals on local communities.
However, this doesn’t mean you will go out of business, so what can you do? It’s simple! Endeavor to stay up to date with the local policies and regulations as they come up. Adopt and adjust to them as well. Increased regulations only add complexity to operations and do not terminate them.
Local Experience:
Most travelers no longer find interest in traditional hotels and motels. They want something that makes them feel more at home in the area they settled in.
For example: Travelers who wish to feel more like the locales of a particular area, expect to find things that relate to them in their accommodations. If they are known to make baskets and some crafts. Do well to decorate the rentals with some artistic crafts.
Therefore, ensure that your STR service provides travelers with a more unique and authentic experience. Ensure that your rental doesn’t feel more like a hotel than it should a home. Provide them with a new and unexpected experience that will sweep them off their feet.
Rise Of Alternative Accommodations:
Travelers are no longer left with only traditional hotels as accommodation options. And to be candid, most of them are no longer interested in hotels. They aim and anticipate something different, something out of the regular accommodation styles.
For motivation, it will interest you to know that In the year 2022, Airbnb hosted a competition where $10 million was given to hosts with the most unique properties. This proves that authentic experiences are the future of short-term rentals.
Therefore, expect to see more alternative short-term rental options, including tiny homes, glamping tents, and yurts, entering the market soon. Which means more competition as well.
Focus On Sustainability:
Travelers are becoming more and more environmentally conscious, so endeavor to focus on sustainability.
As a property owner or manager, you need to consider improving the rental environment. To make it more environmentally friendly, consider equipping the rental with more energy-efficient appliances, low-flow shower heads, improving the HVAC system, and lots more.
For a more personalized experience, consider communicating with travelers about their sustainability preferences to equip the rental in ways that meet their standards.
The Future Of STR
Short-term rentals are a rapidly growing industry that will pick momentum in no distant time. The competition will increase as more people begin to explore the pros and cons of investing in short-term rentals.
However, the future of short-term rentals lies in the ability of managers, owners, and investors to adapt and adjust to the recent global rental developments, move along with technological advancements, and also apply quality marketing strategies.
Lastly, property owners should make an effort to stay updated with the trends and changes that may occur in their jurisdiction, particularly regarding community policies and regulations.
