This Week in PM: Is a Windfall From the Short-Term Rental Industry on the Horizon?
Short-term rentals are experiencing a downturn brought on by rising costs and travelers returning to hotels. Learn how property managers can convince short-term rental owners to move into the long-term market in the coming months.
The short-term rental market is changing. Some investors who purchased properties intending to use them as short-term rentals are having second thoughts, creating a new way for property managers to find long-term clients.
During the pandemic, short-term rentals were all the rage. Airbnb and other websites became incredibly popular because travelers liked finding hidden gems in off-the-beaten-path locations while staying away from major centers where COVID-19 was running rampant.
However, since then, cleaning and administrative fees have increased the cost of staying in short-term rentals, creating a shift back to hotels for many travelers. There may also be fewer people traveling for economic reasons.
The Strategic PM team recently sat down with Jason Sheffield, a ScaleClub Coach at RentScale, to discuss the downturn in the short-term rental market and how property managers can market their services when attempting to convert short-term rental investors into long-term clients.
Factors Hindering the Short-Term Rental Market
We could be moving into a downturn in the short-term rental market, and it’s driven by multiple factors. However, for property owners, it all comes down to economics because they need to have enough money coming in to handle their expenses.
One potential issue for short-term rentals is legislation.
Jeremy Pound is the CEO of RentScale and Juicy Results, two firms that help companies systematize and scale their sales. In the last decade, he has helped craft and implement online marketing strategies for countless companies that range in size from the smallest of businesses to Fortune 100 companies.