Investors in short-term rental properties wanting to earn as much as possible in today’s market should put strategic thought into the amenities they offer their guests as supply continues to outpace demand for vacation rentals.
Short-term rental supply has grown at about 22% per month since last August, according to a recent report from vacation rental hospitality company Evolve. But demand growth has been slower, rising about 2% to 3% each month since January.
Among the suggestions Evolve recommends to make a property stand out from the competition is making sure the basics like a fully stocked kitchen and reliable Wi-Fi are covered but also offering amenities such as a pet-friendly experience, thoughtful welcome gifts and providing entertainment options.
“Vacation rental industry trends are always changing, and this spring has been no exception,” said Eric Schueller, executive vice president of revenue at Evolve. “If owners want to earn as much as possible in today’s market, they need fresh revenue optimization strategies — including strategic thought into the amenities offered — to make sure they win guest bookings over nearby competitors.”
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Other ways to get the most out of a short-term rental investment include setting competitive average daily rates (ADRs) and watching for changes in booking behavior, which can help determine where to set ADRs.
Other ways to maximize revenue include providing flexible cancellation policies, requesting guest reviews for better property listing performance and strategically designing listing content to show up in guest searches.
Consider Location
Vacation rental industry trends vary by region, with some seeing growth happen quickly while others move at a slower pace.
In the Northeast, for example, seasonal demand is focused on water activities where guests are fishing in lakes, streams or the Atlantic Ocean. As a result, demand is lower during the winter and spring months than it is in the summer.
But the Northwest offers year-round adventure including everything from skiing and ice skating in the winter to hiking and biking in the summer.
In any location, visitors like to relax after an action-filled day outdoors, so investing in a hot tub and freshening up a property’s patio and outdoor space can go a long way toward pleasing the people who stay there.
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