The short-term rental (STR) industry, an increasingly popular sector in the vacation rental market, has evolved into a lucrative investment opportunity for many investors, from seasoned veterans to first-timers. The surge in online platforms like Airbnb, Vrbo, and Guesty has not only made investing in STR properties more accessible but also significantly profitable. This expansion is a testament to the dynamic nature of the short term rental market, catering to the evolving preferences of travelers.
The importance of staying ahead of the market
In the dynamic realm of vacation trends and markets, change is the only constant. The preferences of travelers, influenced by evolving societal trends, technological advancements, and global events like the COVID-19 pandemic, continually reshape the landscape of the vacation rental industry. The market has witnessed a shift from traditional hotels to more personalized and unique accommodations offered by the short term rental market. This transition is fueled by the growing desire for authentic, local experiences, coupled with the convenience and variety provided by online booking platforms. Furthermore, remote work has revolutionized destination choices, making once secluded locales increasingly popular and altering demand patterns in established tourist areas.
These shifts require property owners and managers to be agile and adaptive, constantly re-evaluating their offerings and strategies to stay aligned with the ever-changing desires of global travelers. At Summer, our team of real-estate experts monitor trends to provide the best-advice to set short term rental investors up for long term success. To learn more about Summer and our innovative short term rental and vacation home ownership solutions, click here.
Key benefits of owning a short term rental
Short-term rental ownership has emerged as a highly desirable investment in the dynamic real estate market, offering a unique blend of personal enjoyment and financial opportunity. This lucrative venture not only promises attractive returns but also provides owners with the flexibility to enjoy their property as a personal retreat, adapting seamlessly to their lifestyle and investment goals. Three major benefits of being a short term rental owner in 2024 include:
- Enhanced Rental Income Potential: A standout benefit of investing in STR properties lies in the opportunity for heightened rental income, surpassing what is typically achievable with long-term rentals. STRs, especially when managed by proficient property managers like Summer, have the advantage of charging premium rates during peak seasons and in-demand events, such as local music festivals. This pricing strategy is a vital aspect of revenue management in the short term rental industry, enabling property owners to optimize their earnings significantly.
- Unparalleled Flexibility: The flexibility in managing short term rentals extends beyond just pricing adjustments. As a property owner in the short term rental market, you have the autonomy to control the availability of your property, turning it into a personal retreat without the constraints of long-term leases. This unique aspect of short term rental ownership allows you to enjoy your investment as a home-away-from-home, enhancing its appeal.
- Accessible Startup Costs:Venturing into the STR market as an investor is notably less capital-intensive compared to traditional rental properties. The rise of vacation rental management companies has simplified entry into the STR market. These companies, equipped with dynamic pricing software, offer comprehensive services that cover everything from property maintenance to online booking, making it easier for new short term rental owners to navigate the industry.
4 short term rental investing trends shaping 2024
Our team of real-estate experts put together a list of the top trends seen among STR investors and vacation rental demand seen across the past few months. Hop on these trends to set your future or current investment up for success in the years to come.
"There are many learnings– built over the course of years– around what makes a good property, what items every rental needs, and how to best market and price a rental.” - Paul Kromidas, Founder & CEO
1. Rising Demand in Quiet, Rural Areas:
The shift towards remote work and the desire for more space, not only a want but a requirement for many emerging from the Covid-19 pandemic has propelled the demand for short term rentals in rural areas. Properties near national parks, quaint towns, and scenic mountain ranges are predicted to see continued high demand, driven by the desire for quality time in nature. This trend suggests a lasting change in the vacation rental pricing strategy, as rural locations that were last-pick options are now becoming sought-after destinations for privacy, relaxation, and a hub from everything from a remote work escape to a family adventure.
2. Sustainability Focus:
The environmental impact of travel and real estate has heightened the demand for eco-friendly rentals. Investing in properties with sustainable features, like solar panels and energy-efficient appliances, aligns with the growing conscientiousness among guests, making it a prudent and forward-thinking investment decision.
3. Luxury STR Properties Surge:
The luxury segment of the STR market has seen a notable uptick, particularly following the COVID-19 pandemic. Travelers are increasingly seeking private, high-end accommodations offering ample space and exclusive amenities. Even rural properties outfitted with high-end amenities, from hot tubs to saunas, and theaters to game rooms end up becoming destinations themselves. This trend suggests that investment in luxury STRs could yield considerable returns, as demand for high-quality, private vacation experiences continues to grow.
4. Rise of Management Companies:
With the STR market's expansion, the need for professional property management services is more pronounced than ever. Management companies, such as Summer, are becoming vital for property owners, particularly those who live far from their rental properties. Click here to learn more about Summer. These companies leverage market data to set rates and increase occupancy rates, handling everything from guest communications to maintenance, thus simplifying the process of earning passive income from STRs.
"Once you buy– or partner with us to buy while you try– you can count on us to be your trusted property manager. We take the headache out of buying, renting out, and managing a second home. Each trip to your Summer home will require far less effort– and far less money– out of your pocket." - Kyle Jessey, Head of Strategy & Planning
Investing in short-term rentals presents a multifaceted opportunity for diversifying portfolios and enjoying personal retreats. With an effective strategy and a dedicated partner like Summer, property owners can navigate the intricacies of the short term rental industry, enhancing their returns while enjoying their investment. The right approach, coupled with smart pricing and expert management, ensures that investors can capitalize on the evolving trends of the STR market without the labor-intensive aspects of property management.
Summer’s expertise in short term rental investing trends
Summer stands at the forefront of short-term real estate investing, offering unparalleled expertise in navigating the ever-evolving trends of this dynamic market. Our deep understanding of the short-term rental industry, combined with a keen eye on the shifting patterns of traveler preferences and market dynamics, allows us to supply our property owners with actionable insights to maximize rental performance. This expertise not only enhances the profitability of investments but also ensures that properties managed by Summer align perfectly with current and emerging trends, making them highly sought-after in the short-term rental space. Click here to discover Summer's short term rental solutions.
About Summer
Summer offers innovative solutions to revolutionize the vacation rental landscape for both property owners and guests. Our focus is on elevating short-term rental performance by creating inviting spaces and memorable experiences that drive positive feedback and repeat visits. Schedule a complimentary consultation with us to uncover how Summer can turn your short-term rental into a premier destination. Click here to book a free consultation.
Beyond enhancing rental performance and guest satisfaction, Summer stands out in its attentive approach to property management. We also offer versatile, cost-effective financing solutions and imaginative design options to assist property owners in both renovations and effective cash flow management. Our solutions work to empower property owners with seamless, affordable pathways to make impactful changes proven to transform vacation homes into top performing listings. Visit gosummer.com to learn more.
