Why I See Opportunity In Short-term Rentals (And you should too 🤗)

In just a short amount of time, short-term rentals have become one of the most popular types of accommodation for travelers around the world. And for good reason – they offer a level of flexibility, comfort, and convenience that traditional hotels simply can’t match.

Not only have short-term rentals changed the experience of the traveler, they have also changed the lives of those that own them. In the past two years, many investors (new and experienced) have entered the short-term rental business and in turn have flooded the market with over-supply. This oversupply has been seen specifically in the STR sector of 2-3 bed, single family homes. Owners of these asset classes are no longer as profitable as they once were and investors are wondering whether STR is still a good investment opportunity.

It is as the old saying goes. The riches are in the niches.

Many STR operators are seeing success in unique business models that offer their guests an experience - yurts, luxury tenting experiences, luxury STR, tiny homes, etc. It is becoming evident that people will pay more for the experience, and therefore demonstrate more profitable returns to the investor.

This experience-based offering to the short-term rental model is where I see investment opportunities going forward. The key to success in the short-term rental market is offering unique and specialized rentals that immerse guests in an experience that takes them out of the day-to-day.

Whether it's a luxury home with and indoor pool or a fancy outdoor camping experience, investors can tap into a niche market of travelers who are searching for something out of the ordinary. This not only provides much higher profitability potential and better ROI, but puts hosts one step ahead of their competition in an increasingly saturated market.

So don't settle for the same old offerings—go out there, be creative, and make sure you are seeking unique, value-driven investments for your real estate portfolio!