Bloomberg News Discusses the Future for Airbnb Hosts

Open Air Homes Has Been Focusing on Monthly Rentals and Direct Bookings Since 2018

By: Brad Greiner, CEO of Open Air Homes and OpenAIRE Brokerage

August 1st, 2024

House of the Sun in Palm Springs, CA by Open Air Homes

At Open Air Homes, we’ve always been ahead of the curve in the short-term rental industry. Recently, Bloomberg News published an article discussing two significant trends that we’ve been championing since 2018: medium-term rentals and finding guests directly instead of relying solely on Airbnb. These strategies have been the cornerstone of our success and continue to set us apart in the competitive Los Angeles market.

Shifting to Medium-Term Rentals

In 2018, Open Air Homes made a strategic shift towards medium-term rentals, or what we call Month+ rentals. We recognized early on that this model offers numerous benefits to both homeowners and guests. This shift was not just about adapting to market trends but about providing a secure and seamless experience for our clients.

To ensure our medium-term rentals are legally compliant and protect our homeowners, we converted our business to a legal real estate brokerage in 2018. With our Broker David Manduca overseeing all 30+ day rentals, we make sure that every client signs a CAR form via Docusign. This process not only safeguards our homeowners in case we ever had to evict a tenant for non-payment, but also complies with California state regulations.

If you’re currently renting out your home for more than 30 days in California without a CAR form, please be aware that eviction can be extremely challenging. We strongly advise working with a company with a CA Real Estate Broker’s License like ours to ensure your rentals are legally compliant and your interests are protected.

Embracing Medium-Term Rentals

Long before extended travel and work-from-anywhere became a trend, we had already started transitioning a significant portion of our portfolio to Month+ rentals. According to Bloomberg, “On Airbnb, there’s a specific opportunity in the shift to mid-term rentals—stays of longer than 30 days but shorter than the yearlong leases people sign for their primary apartments.” This shift aligns perfectly with our strategy and the growing market demand.

Our homeowners appreciate this model for several reasons: reduced wear and tear on their properties, fostering good relationships with neighbors, and the peace of mind of having longer-term guests. Many of our Month+ homes have welcomed renters for 2-4 months, and even up to a year, appealing to those who want to live in town temporarily without the hassle of furnishing a home.

House of the Sun in Palm Springs, CA by Open Air Homes

Enhancing the Guest Experience

We work in partnership with homeowners who use their homes part of the year, helping them rent out their properties for extended periods when the home would otherwise sit vacant. This not only benefits the homeowners by reducing turnover but also ensures a steady income stream.

The article also highlights, “Over the past year, the number [of mid-term rentals] has settled at around 18%.” We see this as a growing trend, with more guests opting for longer stays.

We are strategic with our monthly pricing to appeal both to short term guests, while further out adding a significant monthly discount to encourage these longer stays into the future.

Direct Bookings: A Growing Trend

In addition to our focus on Month+ rentals, we have been exploring direct bookings through our website and extensive networks. We utilize Safely Insurance to protect our homes, offering guests a comparable level of security to Airbnb but at a lower price.

For 2024, approximately 20% of our monthly revenue comes from direct bookings, and we aim to increase this figure continually.

Further, we are currently rebuilding our website to be mobile first, allowing guests the ease of booking efficiently while on their phone.

House of the Sun in Palm Springs by Open Air Homes

Why Partner with Open Air Homes?

For homeowners seeking management services but wary of the challenges associated with Airbnb, we offer a reliable alternative. By choosing Open Air Homes, you can benefit from longer-term rentals and occasional short stays, ensuring your property remains occupied and generating income.

Here’s why partnering with Open Air Homes is a smart choice:

• Experience and Expertise: We’ve been in the short-term rental industry for over 11 years, boasting a 4.91-star average rating.
• Higher Occupancy and Revenue: Our homes have a 74% occupancy rate and an average nightly rate of $433, outperforming the Los Angeles market. The Palm Springs market has been hit with a higher supply than demand, yet we are still outpacing the market.
• Focus on Medium-term Rentals: We specialize in legal 30-90 day rentals, reducing turnover and fostering longer-term relationships with guests.

Setting New Standards

At Open Air Homes, we are setting a new standard for the short and medium-term rental industry in Southern California. From design and hospitality to operational excellence, every aspect of our service is crafted to ensure that our homeowner partners enjoy maximum returns and our guests leave with memorable experiences.

The Bloomberg article notes, “The mid-term space is all about connections.” We take this to heart, building strong relationships with both homeowners and guests to ensure a seamless rental experience.

Connect with Us

If you’re a homeowner looking for a reliable management company, Open Air Homes offers a blend of experience, high standards, and a focus on medium-term rentals. We invite you to join us in setting a new standard for the short and medium-term rental industry in Southern California.

Contact us today to learn more about how we can help you maximize your property’s potential.

References:

• Lung, Natalie. “Airbnb Hosts Want Guests to Come to Them Directly.” Bloomberg, July 22, 2024.

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Join us at Open Air Homes and experience the benefits of working with a seasoned and innovative property management company. Together, we can ensure that your home is not just a rental, but a thriving asset in the competitive rental market.