In 2021, the short-term rental industry cooled off for the first time in its history. It’s time for homeowners to consider a dual strategy to attract–and keep–renters.
For the first time in the history of the short-term rental sector, supply exceeds demand and occupancy rates in many cities are lower than expected. As of June 2022, the short-term rental market has seen its biggest decline ever – and may continue to drop, as economic uncertainty looms.
Countless homeowners entered this booming industry after hearing about the huge earning potential – and are now realizing that supply is up while occupancy, rates, and demand are down.
At Open Air Homes, we cover our bases by providing homeowner partners with multiple ways to increase occupancy rates.
In addition to listing homes on the major booking platforms and our own website, we also list homes on sites like Zillow, Redfin, and Apartments.com.
Benefits of Monthly Vacation Rentals
Homeowners see the benefits of guests staying for longer periods of time. Extended stays provide a happy medium: furnished, month-to-month rentals combine long-term renters’ stability with short-term rentals’ profitability. We call this model Month+, or month-plus.
Generally, guests who stay for Month+ trips are more respectful of the home and community, and it guarantees homeowners 100% occupancy for at least one month. It also helps cover low seasons in areas with quieter tourist periods.
Who Books Monthly Vacation Rentals?
Long-term vacation rental guests are golden opportunities, and digital nomads and retirees will continue to trend in the travel industry. Marketing to these two groups on the wide range of sites they use helps us take a broader approach and ensure that our homes have higher occupancy.
Catering to Digital Nomads
Digital nomads are another category of renters who tend to book longer stays, along with being respectful guests. Monthly rentals for remote workers are in demand – providing professionals with a beautifully-maintained home and excellent customer service goes a long way.
Digital nomads are more likely to use Airbnb as their primary source to book a Month+ trip.
Catering to Retirees
By 2050, it is estimated that 22% of Americans will be retired, many of which had the opportunity to purchase homes at low rates or buy into the stock market during the peak of their careers and have a lot of equity built up as a result.
These retirees often have more access to capital and are comfortable with the idea of renting a vacation home for an extended stay. Here’s what you need to know when marketing your vacation rental property to retirees:
- Retirees are more likely to shop on VRBO & Zillow than on Airbnb
- They tend to book longer stays at vacation rentals, as opposed to weekend trips
- 2021’s decreased demand for short-term rentals is a reminder to broaden your options when marketing to potential renters
- Sites like Zillow and Redfin are great platforms to attract more serious longer-term stay inquiries
- Catering to retirees and digital nomads, who have the luxury of traveling for extended periods of time, takes a broader strategy to stay competitive
- Now is the time to begin transitioning some of the short-term rental industry into longer stays, so homeowners can continue to offer guests what they want amidst the rapidly-changing demand for whole-home rentals
Are you ready to tap into your ideal rental group and maximize your investment property’s potential? We can help.