Why Short-Term Rentals May Be Coming Up Short

I continue to talk with new investors that think short-term rentals is their best path for getting started in real estate despite the many challenges already in place. With short-term rentals, more than any other facet of real estate, there are so many factors which go above and beyond the property and the numbers.

 

Unfortunately, new research brings another challenge for those already involved with short-term rentals, especially in communities which cater to international travelers. Miami, Los Angeles, San Francisco, and NYC are among the more prominent examples. Fresh research shows the expected significant losses from international travelers not coming to the U.S.

 

Much of the hotel industry has already, and wisely, been on the attack, resulting in more "staycation" advertising and marketing campaigns to the public. However, short-term rental owners do not have that luxury. Advertising venues like Air BNB and VRBO will continue to generate revenue from communities which cater to domestic travel and not necessarily need to increase their campaign spending.

 

This research is a major example of why gathering ongoing research is so important in real estate. It could be a reason for an owner to sell or seek a long-term tenants rather than deal with the added challenges of a smaller audience of potential tenants. Meanwhile, it is possible that an individual or group with strong connections to continuing international travelers could pick up a bargain by purchasing a short-term rental property at this time.

 

There is more to it than making the numbers on the property work.

 

https://www.hospitalitynet.org/news/4127190.html