By: Brad Greiner, CEO of Open Air Homes and OpenAiRE Brokerage
The landscape of the short-term rental (STR) industry is evolving rapidly, as indicated in AirDNA’s 2024 U.S. Outlook Report. This transformation presents both challenges and opportunities, particularly for companies like Open Air Homes that are adept at navigating these changes. Here’s our comprehensive analysis and strategic approach in light of the report’s findings.
Reflecting on 2023: A Year of Resilience and Learning
The STR market in 2023 witnessed a notable decline in Revenue per Available Room (RevPAR), yet it was a year where demand scaled new heights, particularly in July, with listings exceeding 1.6 million by September. This period was pivotal for Open Air Homes, emphasizing the importance of catering to evolving guest preferences and focusing on properties that seamlessly blend luxury with practical living.
Anticipating 2024: Growth and Equilibrium
The upcoming year is set to witness a growth in demand by 10.7% and a stabilization in occupancy rates. Open Air Homes is particularly attentive to these trends, emphasizing properties in the 70-90th percentile range that consistently deliver an exceptional guest experience. We believe that investing in properties that offer both luxury and practicality will continue to attract discerning guests, resulting in sustained high occupancy and robust revenue.
Elevating the Month+ Rental Market
A significant strategic shift for Open Air Homes since 2018 has been our heightened focus on Month+ stays. We recognize a growing market segment seeking 1-5 month furnished rentals, a niche not fully catered to by traditional platforms. To address this, we are expanding our presence on platforms like Zillow and Redfin, adapting to the need for more flexible, shorter-term leases that do not fit the conventional one-year mold. This pivot is a response to a clear market demand for more adaptable leasing options in the furnished rental sector.
This tiered approach of treating every home under management with its own formula for success is leading to higher occupancy, higher net revenue, and less turnover in our homes. Our homeowners tend to use their vacation homes 2-4 months a year, and therefore a traditional year lease is out of the question for the majority of them. This multi-rental-platform approach allows them to hit higher occupancy rates, while still being able to enjoy their home.
Navigating New Regulatory Landscapes
With the introduction of new forms like BOE-571-STR, the regulatory environment for STRs is becoming more complex. Open Air Homes is committed to guiding homeowners through these changes, ensuring compliance, and maximizing investment potential in this shifting landscape.
The Road Ahead: Strategic Adaptation and Excellence
Looking forward, Open Air Homes remains dedicated to excellence in a market characterized by changing guest preferences and regulatory frameworks. Our focus is on delivering an unparalleled guest experience in high-quality properties, aligning with the market’s shift towards Month+ stays. By adapting our portfolio to meet these emerging needs and expanding our platform presence, we aim to solidify our position as a leader in the luxury STR market.
Embracing Change for Continued Success
In summary, the 2024 outlook suggests a market ripe for strategic adaptation, with opportunities for those who understand and respond to emerging trends. At Open Air Homes, we are poised to leverage these changes, continuing to offer top-tier properties that meet the evolving demands of the STR market. Our proactive approach in expanding into the Month+ rental space and navigating new regulatory requirements positions us to offer our homeowners continued success and growth in their STR investments. As we move forward, our commitment to excellence and strategic agility will be key in thriving in this dynamic market landscape.
