The short-term rental property market has exploded in recent years, with platforms like Airbnb, VRBO, and HomeAway making it easier for property owners to rent out their homes, apartments, and even spare rooms to travelers. In 2023, it is expected that the market will continue to grow and evolve as more and more people turn to vacation rentals to save money on accommodation while on holiday. However, as a new owner, this won't come without hardships.
One of the main reasons for the growth of the short-term rental market is the increased popularity of alternative accommodation options. Hotels can be expensive, especially in popular tourist destinations, and many travelers are now opting for more affordable options like vacation rentals. These rentals can range from a single room in someone's home to a fully furnished apartment or house, and they often offer more space and amenities than a traditional hotel room.
Another factor driving the growth of the short-term rental market is the rise of the sharing economy. More and more people are willing to share their homes, cars, and other assets with others in exchange for money, and platforms like Airbnb have made it easy for property owners to connect with travelers. In addition, the growing trend of digital nomadism, or working remotely while traveling, has also contributed to the popularity of short-term rentals, as these properties offer a home-like setting for remote workers to live and work. Nomadism will continue to drive travel but is expected to slow some in 2023 as people become slightly more tied to offices.
The growth of the short-term rental market has not been without controversy. One of the main concerns is the impact on the housing market, particularly in popular tourist destinations. In some cities, the availability of short-term rentals has supposedly reduced the number of long-term rental properties, leading to a shortage of affordable housing for residents. Numbers suggest this effect is far less than many in opposition like to admit. However, this has led to calls for stricter regulation of the short-term rental market, with some cities imposing caps on the number of properties that can be rented out and others requiring property owners to obtain special licenses.
Despite these concerns, the short-term rental market shows no signs of slowing down. It is expected to grow in 2023 and beyond, with more property owners turning to platforms like Airbnb and VRBO to rent out their homes. If you are considering becoming a short-term rental property owner, there are a few things to keep in mind.
First, the most critical piece is to understand the laws and regulations surrounding short-term rentals in your area. Different cities and states have different rules and regulations, so it is important to be aware of these before renting your property. This may include obtaining a special license or registering your property with the city. Your property may also be in a buffer zone or a complete moratorium so knowing these things before you buy is a must.
Next, consider the type of property you want to rent out and understand if your market supports that type of property. If you have a whole house or apartment you are not using; this can be an easy way to make extra money. However, if you only have a spare room in your home, you may want to consider the impact this will have on your privacy and daily routine. Renting out a room in your home requires greater commitment and may not be suitable for everyone. Use tools like airdna.co to check your market data and understand the needs of your area.
It is also important to consider the amenities you will offer guests. Many travelers prefer vacation rentals because they offer more space and amenities than a traditional hotel room. Consider what you can offer to make your property more attractive to potential guests, such as a fully equipped kitchen, high-speed internet, and a comfortable living area.
Finally, be prepared to handle the practicalities of being a short-term rental property owner. This may include managing bookings, communicating with guests, and handling any issues that may arise during their stay. Having a system for cleaning and preparing the property between guests is critical to run a sound short-term rental business.
Overall, the short-term rental market is expected to grow in 2023, with more and more properties being added to the major booking platforms.
So, will you contribute to that growth and start hosting your first property?
Drop your questions and comments below!
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