Is this a good time to join the Short Term Rental business?
Is this a good time to join the Short Term Rental business? For Alejandra Contreras, our Operations Manager at Stratton Hospitality, the answer is yes!
Many investors and entrepreneurs are reluctant to dive into the STR business as it seems uncertain when the disruption caused by the pandemic will end. Nevertheless, recent studies suggest that COVID-19 has favored Vacations Rentals due to significant changes in travelers’ behavior.
Here are some reasons why this is a great moment to foray into the vacation rental business!
Vacation Rentals boomed with the pandemic.
Since the lifting of the stay-at-home order, and the easing of the domestic travel restrictions, Short Term Rentals rebounded.
Average Daily Rates were reported higher in July 2020 compared to July 2019 in the US for Vacation Rentals. Occupancy rates have remained steady since the beginning of April, with an average above 50%. (Air DNA)
According to AirDNA’s study on COVID-19 impact on hotels and short-term rentals, the hotel sector experienced much steeper declines than all short-term rentals as corporate and group-oriented demand has dissolved.
Short Term Rentals are the preferred travel alternative amongst travelers during COVID-19.
It is not a surprise that travelers are more concerned about their safety and cleanliness when they think about going for a getaway. Vacation rentals have become the answer for post-pandemic travel because they offer sanitized environments, full privacy, and private amenities that serve to keep families safe and Socially Distanced.
In this day and age guests are not willing to travel to a place where people are sharing the same amenities, where they are touching the same elevator, entry, and exits.Alejandra Contreras, Operations Manager at Stratton Hospitality.
Approximately 2 out of 3 travelers said they were willing to book and stay in a vacation rental in 2020, revealed VRBO recent research. The same study shows that 24% plan to travel more closely to home than they would have in the past, and 29% expect to take more domestic trips — both for convenience and to save on costs.
Our biggest competitor is not competing!
COVID drove hotels to a ground halt, leaving vacation rentals enough room to cover the unattended segment of the leisure market. Two reasons why customers were behaving like this is the absence of business travel and travelers migrating to midscale and low budget options.
Many hosts across the US used this opportunity to leverage their vacation rental business, not only by offering a safe accommodation alternative but delivering an outstanding customer experience.
Are you still thinking if this is the best time to join the Short Term Rental business? Think no more! The “new normality” offers a unique opportunity for investors and entrepreneurs looking to capitalize on their home.
Get rid of the hassle and increase your income with ease!
A seamless alternative to start in the business is by hiring a professional property management company. A company like Stratton Hospitality will provide exposure on all major and niche booking portals depending on the home’s location and characteristics, also 24/7 guest concierge, and help you set up your home for maximum return.
Not only will you receive a steady income flow, but your home will remain in top shape due to periodic maintenance.
Did you find this article helpful? Make sure to subscribe to our weekly newsletter! We send weekly deals and tricks to improve your performance as a Short Term Rental Host.
Social Media Manager at Stratton Hospitality