Investing in short-term rental properties has come out of the shadow of residential rental investment and is a widely seen as a profitable alternative to the old rental model.
While there are plenty of arguments as to the sustainability of operating in a short-term market mostly citing the risk of regulations, tourism fluctuations and increasing competition, the benefits to many investors outweigh these potential disadvantages. And according to Scott Shatford of AirDNA, if the data supports the investment plan, the return can be significant and worthwhile.
I first interviewed Scott in 2015 when he was just beginning to become embroiled in the regulation war in Santa Monica that resulted in him suspending his Airbnb account. At that time, his AirDNA start-up was being run out of his garage and beginning to make an impact with potential property investors looking for the right locations.
Three years later, the company now employs multiple marketing and data analysts to focus on the short-term rental activity in over 60,000 cities worldwide. Potential investors can learn how much the best properties are earning and where the best locations are for new investment properties, as well as comparing rates and occupancy level to competitors.
In this insightful interview Scott talks about:
- Why investment hot spots have become hyper-local
- How short-term rentals are filling in the voids where there is short supply
- Why national park location make a good investment choice
- The importance of marketing to your personas
- Why we need to be ready for repeat business being eroded
- The old paradigm of vacation rentals and the risk of getting stuck
- The value (or not) of being an Airbnb super-host