Is the Short-Term Rental Market Becoming Overcrowded?

You may have found yourself thinking about entering the short-term rental market but have heard many others talking about how competitive it is or how there’s too many people doing it. Let’s face it. There are many people doing it. And, is the short-term rental market becoming overcrowded? 

AirBnB, VRBO and others like this have taken over the market and people are making a killing doing it. So, is there still room for you? My answer is absolutely, 100% YES!

Let’s Look at This a Bit More Closely!

Over the past couple of years, the rental market as a whole has grown substantially, as have rental prices. More people are telecommuting. More people are traveling for work and more people are simply choosing to travel and see the world in a more frequent manner. This shift in the lifestyle of the working professional and the nomad living out life’s calling is fantastic. However, it can be difficult for these travelers to find short-term housing.

As I’m sure you may know, the traditional rental blueprint is not designed for short-term renting. Landlords most always want a tenant to sign a one-year lease, whether staying in an apartment or a house. But how can one commit to a lease if their work contract is only for a few months? And what if their travel plans may only be to stay in an area for a few weeks? With this said, the need for short-term rentals continues to rise creating an opportunity for you to put some money in your pocket while meeting a need for others.

So Where can These Short-Term Travelers Lay Their Head at Night?

That’s where you come in. You may have a spare bedroom you’d like to rent or perhaps you’ve dreamed about building a tiny house that you can share with others. There are even some other cool buzz words related to rental properties that may fit your fancy from granny flats to ADUs (Accessory Dwelling Units) or from she sheds to the illustrious man cave. Each of these options is unique and can be filled with your personality while ensuring that the needs of the traveler are met.

But what if you spend all this money creating a space for short-term renters and no one rents from you?

With all great ideas comes risk, and the rental market is no different. However, there are many factors you can address to mitigate the risk and ensure a filled calendar.

• Property Listing – Take GREAT photos. Showcase your hard work. Make certain that the space is clean and uncluttered so people can envision themselves staying there. Talk about your space and why it is unique. Even share your story and why you decided to get into short-term rentals. Explain how it is important to you that each tenant feels comfortable and pampered. That they enjoy themselves as though they’re on a vacation even if they’re working.

• Location – No matter where you live, there is something that will interest the traveler. Perhaps you live in a mountain area, or near water or in the desert. Perhaps there are some fantastic eateries specific only to your town or amazing hiking trails. Maybe there was a film that was shot at a certain place in the city or a fantastic dog park close by for the fur babies. There is always something that will make someone interested in visiting your area, but you need to feature it when you list it.

• A comfortable bed and pillow – This is crucial. I’m sure you’ve been in a hotel only to find that the bed is uncomfortable. Or, the pillows are too hard. You want your traveler to never want to get out of bed. You want them to feel like they could sleep forever.

• A fresh scent – No one wants a space that is musty. Use a diffuser of some kind and use a scent that is welcoming and cozy. Your tenants will feel at home and appreciated.

• Window coverings – You may be wondering why I would list this as something that will set you above your competition. Trust me, it will. As a landlord, you’ll have many types of travelers. Most people love natural light and lots of windows. This is great but for the traveler that may need to sleep during the day, windows can be problematic if not addressed properly. Make certain to have black out blinds in your space so your daytime sleeper can get some good rest. Even have a sound machine available to block out the outside noises.

• Amenities – Amenities will set you above your competition. Of course, you’ll want a fully stocked full bathroom and kitchen, but if you can also offer a washer/dryer (and there are many options that won’t break the bank that will fit in small spaces), an outside seating area and/or deck, a bbq for those summer nights and even (if the budget allows) a jacuzzi and/or sauna, you will have just guaranteed yourself a full calendar. Chinsing on a few hundred dollars could lose you thousands in the long run.

• Be available – If you’ve done your due diligence in setting up your property correctly, most tenants won’t be calling you. However, when the wifi password doesn’t work (because they entered the password incorrectly) or they can’t remember how to lock the French doors (you get the picture), be available to them. Be quick to respond to their needs. Your property reviews will be amazing. You will have repeat tenants and yes, your calendar will remain full.

The overall objective is to determine what’s right for you as the new shining star in “landlordism.” Then, jump in. Seize the opportunity and be a solution to the rising need of short-term rentals. There is and will always be a need for these spaces.

Are you looking to get into the short-term rental space? Have you decided what type of a dwelling you’d like to build? Or, are you planning on renting out a room in your house?