Short-term rental properties had continued to boom in the last few years until this year when the market got hit by the global COVID-19 pandemic. This has dramatically triggered lots of downing effects on the stability of the market. We need to look at short-term rental strategies that would help most short-term rental investments bounce back in the coming years. As an investor seeking to make more profits, you should note the trends that have affected the market structure and deploy strategies that would cover up.
Here are some of the trends and strategies every short-term rental investment needs to consider for better income returns.
1. Enhanced Sanitation and Cleaning
Due to the wide outbreak of the coronavirus, travelers have become more sensitive towards the environment they find themselves in and the measures taken to protect themselves.
The issue of thorough hygiene has become well embraced by different quarters. Those seeking short-term properties are more conscious of what steps would keep them safe from the virus’s infection and other parasites. This has introduced the need for short-term rental investment to implement better cleaning and sanitation protocols to ensure that clients don’t get infected.
Companies and investors must develop standard operational measures that will boost the client’s confidence and safety. Some of the new standards include the use of sanitizers and disinfectants, protective equipment, improved and accurate records of guests who have logged in to the property. When new clients see these measures all put in place, it attracts them to Lodge in your property, thus increasing the short-term rental income.
2. Conversions into Long-Term Rentals
Another trend proposed to take full effect in 2021 is converting short-term rentals to Long term rentals. This conversion was aided by the widespread shock waves which hit the entire world due to the Covid virus. This imposed a series of restrictions and lockdowns, which ultimately affected the demand for short-term rental properties. For properties to remain significant and not vacant, investors turn them into long-term properties to avoid vacancies.
The Increase in the duration of renting is targeted at attracting more clients. Long-term rental properties are more efficient to handle since they incur less expense. The income used to maintain and run short-term rental properties can be used for two long-term rental properties. This sharp contrast in operation cost, maintenance, and running has made more investors consider more long-term properties. Property owners have discovered that they have recovered the profits lost during redundancy by transforming short-term rentals to Long term.
An in-depth study of the rental market’s moving trends suggests that most successful renting has been on the side of mid-term and long-term rental periods. With the introduction of discounts ranging from fifty to sixty percent, more clients have been compelled to patronize more facilities than others.
3. Higher Bookings In Remote Areas
A new trend in the short-term rental market is clients’ crowding and demand for rental properties in some remote areas. Investors need to overcome this trend by taking countermeasures.
A good countermeasure is the advertisement of rental properties as get-aways from the ravaging COVID-19 effects. These investors understand that social distancing is a requirement for staying safe from the virus.
Social distancing in populated and crowded cities and towns is quite impossible to achieve, and thus, residents would have to relocate to other sparsely populated areas. Vacation properties in these areas prove very useful since relocations are inevitable to stay healthy. Besides residents, medical professionals and other field workers can also use these rental properties as holding areas during the quarantine.
As a result, there has been an increase in bookings for short-term rentals in more remote areas. An investor should know the type of short-term rental investment to avoid running into losses. You can get more information on the most profitable short term rental Investments online.
4. Decrease in the Price of Rent
Another trend that has destabilized the rental market is the sudden drop in short-term rental prices. This happened concurrently with the decrease in demand for short-term properties. This decrease can act as a strength for new investors looking forward to purchasing more properties. It allows them to buy new stuff at subsidized rates and make more profits as the market continues to rise and get better. For many hosts, price slashes are the only effective strategy to avoid a total shutdown for the entire facility since patronage has dropped considerably. New investors and clients can use this to afford more short-term properties that would have been off their financial status.
Only properties with seemingly affordable rates have been able to stay afloat from the profit loss in the rental market.
Best short Term Rental Markets in 2021
1. Upcoming Markets
This category involves areas that have been hidden and not actively engaged in renting for quite a while. These areas hold twenty-five to a hundred active properties, which would rise as renting continues to increase. Properties in this category include the Minnesotan lakes, northern California, Appalachian mountains, and upstate New York.
2. Mid-sized Markets
Mid-sized markets house properties between a hindered and a thousand active rental listings. This reveals that more investments here would yield more fruitful outcomes. Places that Fall into this category Include the southeast California desert, nature spots in Arizona, and many towns throughout the Midwest.
3. Large Markets
Areas in this last category include over a thousand active rental properties. Their size suggests that they host a good number of travelers irrespective of the season or economic condition. They are the preferred location for many travelers and investors in search of short-term rental properties. Places like Palm Springs, South Lake Tahoe, La Quinta, Pigeon Forge, Bradenton Beach, Gulf Shores all fall into this category.
Conclusion
The bans and restrictions placed on travelers worldwide due to the coronavirus pandemic have instigated a tremendous shift in the short-term rental market. So many factors that would have been responsible for the success of investors have rapidly changed.
Investors must notice the new trends that have been instituted due to the COVID-19 preventive measures and take countermeasures to ensure that profits are still generated. In 2021, property owners should leverage opportunities created to ensure that their properties are enlisted in the heart of visitors.
We continue to remain optimistic that with a decrease in the virus’s effect, things will slowly normalize, and investments that go down the drain will begin to experience rays of light. Investors should also look towards purchasing more properties in areas referred to as large markets.
