For Owners And Property Managers

HOW TO Research And Understand The STR Business

Whether you are brand now to vacation rental or have been in the short-term rental space for a long time, the market is always shifting and understanding the business is foundational to your rental business!

 

Here you will find the tips and resources to see the path ahead…

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Researching & Understanding the Vacation Rental Business is Step 1 for All STR Business owners and Staff.

<< Here are a few key Points from Heather

Not that long ago, it was primarily boomers who owned vacation rental properties that were often much-loved second homes.

 

The owners simply wanted a little second income and opened their doors to paying guests mostly on an ‘as is’ basis.  That meant they didn’t do much in the way of preparation or clearing up, or even in creating any type of welcome.

 

Guests (they were known as ‘renters’ then) were generally happy to experience the lifestyle on offer and willing to overlook the oddities of self-catering because it was a new and unique way of living the life of a local.

 

As vacation rental grew in popularity, so more investors saw the benefits of buying solely for the purposes of short-term rental, and what was essentially a mom and pop business began to mature into a full-blown industry.

 

And here we are today….

 

…with people from every walk of life; millennials, entrepreneurs, young families, as well as retirees now getting involved.

 

…with vacation rental listing sites that have grown from being struggling start-ups offering free listings, into multi-billion dollar companies.

 

…with the consumer demand, competition and media focus that a rapidly growing industry must deal with every day.

 

And every day, more and more people want their piece of the action.

 

So things have changed…and changed dramatically!

We are no longer able to capture the attention of the traveling market by putting up a sign on the lawn, or an advert in the local grocery store.

 

The days of the ‘rental directory’ the size of a phone book are gone. No-one wants to fax an agreement or even spend more than 10 minutes on a transaction from beginning to end.

 

Paying by cheque is no longer an option – and who has them anyway?

 

Now we are dealing with a whole new world that has its’ own vocabulary such as:

 

  • OTA’s

  • Dynamic Pricing

  • Channel Distribution

  • Revenue Management

  • Superhost Status

  • Rental Arbitrage

  • Short-term rental advocacy

 

And having to manage a whole range of other issues from the ground level of neighbor relations to local by-laws all the way to growing state/provincial and federal involvement.

 

It’s no longer a matter of throwing out opening the place up and expecting they will come.

 

That won’t happen anymore.

 

To be successful in the VR business:

 

  • You have to know the industry

  • Be aware of the legislation that might impact it

  • Appreciate that what used to be your competition is now your network

  • Be prepared to learn and adapt to meet the ever-changing landscape of short-term rentals and flexible enough to make the changes.

------ ARE YOU READY? -------

Do you know:

  • Your target market and where the majority of rental guests come from to your location?
  • Who your closest competitors are – their rates and where they advertise?
  • The dollar value of the maximum amount of vacation rental days you can offer?
  • How to find the industry information you need to stay informed and up-to-date with changes in the industry?
  • The legislation and regulations that apply to vacation rentals in your area?
  • What differentiates you from your competitors and know exactly what they do better than you?
  • All the websites, blogs, and forums relating to your specific niche?
  • All your local activity providers and keep a spreadsheet with their website addresses, email, telephone numbers, and their valuable content highlighted?

Do you need Help with your Research?

drop us a line and keep in touch