- The short-term rental market is growing, with online platforms helping property owners earn 30% more per booking.
- Starting a short-term rental business offers flexibility, low risk, and opportunities for creativity and customer engagement.
- Short-term rental business owners typically don’t have to invest heavily in furniture or equipment, reducing startup risks.
- Short-term rental properties can appeal to customers by offering unique experiences and the chance for a personal connection.
- Competitive property features include pools, smart home technology, and amenities tailored to the location and guest needs.
Starting a business can be a very overwhelming process. Many decisions must be made, from choosing a niche to finalizing plans and launching. But if you’re considering starting a business in short-term property rentals, it could be a fantastic venture for several reasons. Here’s what you need to know about the industry, reasons to start a business, and how to ensure you have a competitive property in the market.
Short-Term Rentals Today
It’s estimated that the short-term rental market is worth $100 billion. It’s a constantly growing market, with more people using online platforms to book short-term stays. From hotels to hostels, there are several options available for travelers. But having the opportunity to rent an entire house or apartment is becoming increasingly attractive and cost-effective.
Why Start A Short-Term Rental Business?
There are several benefits of starting a business in this industry. Here are some of them:
1. Profit Potential
The profit potential is one of the biggest reasons to start a business in short-term property rentals. According to recent studies, short-term rental property owners can earn an average of 30% more per booking than traditional long-term rentals.
This increased revenue is partially due to the higher nightly rates you can charge for short-term stays and because you can rent out your property more often. With the rise of vacation rentals and business travel, the demand for short-term rental properties has increased rapidly. You can capitalize on this demand and turn it into a profit by starting your own short-term rental business.
When you start a business in short-term property rentals, you’ll enjoy greater flexibility regarding your work schedule. Unlike many other businesses that require you to be available during specific hours, renting out a vacation property allows you to choose when you want to work.
You can work from home, set your hours, and be your boss. This level of flexibility allows you to work around other commitments or pursue other interests, which is perfect for busy entrepreneurs with other passions outside of business.
3. Low Risk
Starting a short-term rental business carries relatively low risks compared to other businesses. For example, you don’t have to invest in expensive furniture, equipment, or inventory. Most of the things your guests will need are already provided in your rental property.
You don’t have to worry about long-term leases or mortgage payments. You can rent your vacation property during busy seasons and block it out when it’s not in demand. Plus, with the security of various insurance policies and regulations, your investment can be safe and secure.
4. Opportunity for Creativity
Starting a business in short-term property rentals allows you to tap into your creative side. Everything can be designed to appeal to your target customer, from the rental property decor to how you advertise your property online.
Being creative with your rental property creates a unique experience that guests will never forget. Depending on your location, your rental property can be tailored to fit different types of guests – families, solo travelers, couples, business professionals, outdoors enthusiasts, etc. The opportunities for creativity are endless.
5. Strong Personal Connection with Customers
Finally, starting a business in short-term property rentals allows you to build strong personal connections with your customers; unlike a hotel experience where guests check in and out without ever meeting staff, vacation rentals offer a more personal touch.
You can give guests recommendations on local activities, restaurants, and sights. You can also get to know your guests personally and provide tailored experiences accordingly. This personal connection not only increases customer satisfaction but also helps to generate highly sought-after positive reviews, which can drive more business toward your direction.
Ways to Have a Competitive Property in The Market
There are various ways you can have a competitive property in the market. Here are three ways you can achieve that:
Americans love swimming pools, and having a pool in your rental property can give you an edge over other properties. Swimming pools provide entertainment for guests, which is especially important during the summer months when people are looking to escape hot weather.
An attractive swimming pool can help set your rental apart from competitors and draw in more business. However, you must invest in waterproofing systems. Robust concrete swimming pool coatings can protect your property from moisture. This can protect your property from problems like rusting, cracking, and water damage.
Smart Home Technology
Modern travelers love their tech, so having smart home technology can increase your rental property’s appeal and provide more convenience for customers. Installing voice-activated lights, automated climate control systems, security cameras, and electronic door locks can make your rental more attractive. Additionally, it can add value to your property if you want to sell it.
Attractive amenities such as a fully stocked kitchen, high-speed internet, and comfortable furniture are some other ways to make your rental property stand out in the market. Providing nice amenities makes guests feel at home when they’re away on vacation, and it can be a great selling point for your property.
Providing amenities that are tailored to the area where you’re renting can be very appealing to guests. For example, if you live near a beach or other attraction, offering items such as beach chairs, umbrellas, or coolers can make your rental more attractive and provide extra convenience for travelers.