STR Bookings Slow & Daily Rates Low?

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y

Is anyone else anticipating a slowing, just as a matter of course? People were pent up in houses for far too long and then unable/unwilling to fly or stay in hotels because their fear of COVID was so strong. I saw a huge spike in vacation rental use and tourism these past two years. Yellowstone saw visitors increase from 3.8 million to 4.8 million in one year. I went to Hawaii in July and Oahu was busier than it's ever been, by far. On top of that, there's been a buying frenzy for vacation rentals the past two years.

It wouldn't surprise me to see the vacation rental market cool off as tourists start to fly and move back into hotels/motels. But maybe I'm missing something.

The DIY Landlord Book4.7243 Reviews
WebsiteView Page
14Reply
See this reply in the discussion

72 Replies

Jump to latestLatest
  • Karla Simmons
    Vacaville, CA · Member since 2019 · 218 posts · 140 votes
    4y

    @Gary L Wallman

    I think you hit the nail on the head…gas prices, food prices, inflation in general. People are cutting back on the extras, including vacations.

    3Reply
  • Que Tran
    Real Estate Agent · Scranton PA · Member since 2019 · 93 posts · 98 votes
    4y

    Same here. Slow, but the weekends are fully booked, so I'm grateful for that. We are in Gouldsboro PA. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Jason Smith:

    Inflation, competition and everyone charging way more than they did pre-pandemic. I just looked at the place I stayed at on the Gulf Coast pre-pandemic, was $115/night before pandemic now asking $202/night. At $202/night, plus meals, plus tax, plus $140 cleaning fees we will just take a cruise which is now an option.


    this happened to me..  I had rented the same place in Hamilton Mt.. for our annual Salmon fly trip and what was a decent place at 125 a night was now 300 at that price hotels are better option since we dont cook in the unit anyway.. so not sure if they rented their house never checked back in but for sure noticed it.

    My daughter bought a floating home on Puget Island this year and she is doing very well.. especially for the salmon runs.. then she has kyackers etc but she is pricing it to stay full. and its cute as hell.. plus the fisherman can park 2 to 3 boats and parking for 5  trucks etc which is a premium.. so its just one of those one off ones.. we have a place facing the deep water river with a dock have not tried to rent it yet maybe we will.  But I know it would work fine as well .. no real competition and only 60 minutes from down town PDX.
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    4Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    4y

    We have been booking strong since Nov 2021. We are full for the summer. May is almost full and I have bookings for April. We have guests in our lake house right now. We rarely get anyone that early as snow is still a possibility in April. The lake is too cold to use, but we have guests biking and walking the bike trail etc.

    Looks like it will be a gang buster year for 2022.

    North Idaho, Lake Coeur D'Alene.

    3Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    4y

    We have 3 airbnb spaces in our home and we're doing about the same as last year. We aren't close to any interstates, vacation destinations or such. We're in a rural area that doesn't have many/any lodging options nearby so most of our guests have a reason to be here. Once in a while we get travelers passing through but most are attending a nearby function, working in the area or whatever.

    0Reply
  • Jeff Langley
    Member since 2021 · 168 posts · 142 votes
    4y

    This exact situation is why you have to put an emphasis on location and uniqueness, more important now that the market is becoming saturated in many areas. If you're in those areas, you have to take action to stand out. Figure out the top performing STR's in your area and do what they're doing, if not better. My STR is new to the market but I'm fully booked up for the summer, at nearly 1.5x more nightly than expected, and that's without any reviews yet.

    0Reply
  • Jacob M.
    Member since 2018 · 7 posts · 1 vote
    4y

    We have a house in Scottsdale. Bookings were soft in December and January. Feb-April have been very strong. Jury is still out on May and June. We are usually 30 days out with bookings so not too worried right now. 

    0Reply
  • Thomas J.
    Raliegh, NC · Member since 2018 · 50 posts · 19 votes
    4y

    People really need to stop acting like short term rentals are not a business that is affected by basically everything.  Most real estate investors have no business experience, I didn't until I got into short term rentals a decade ago.  The travel business is super, super complicated.  

    Long term renters can pay rent or they can't.  **** breaks routinely. You have insurance, and we're in a housing shortage.

    Short term renters are customers and with customers if they don't have money or can't travel, guess what? They ain't buying. Everything from the weather to cancelled events to airline prices to gas prices and seasons and tons of other factors I'm leaving out, affect your income. And now you have everyone and their mother posing as a pro listing anything they want with vinyl siding and formica counters on airbnb and calling themselves short term rental gurus. Airbnbs biggest mistake is to let any moron off the street listing their POS for rent. AIrbnb is a business too... you're not a business owner if you're basically an airbnb employee and how so similar this is to the ebay boom of yore.  

    If you're experiencing a lull in sales, do something about it. No one else is coming, it's up to us.

    5Reply
  • Uzoma Oranu
    Rental Property Investor · Member since 2022 · 2 posts · 0 votes
    4y

    @Nick Rutkowski

    AirBnb no longer allowed in Ithaca NY?

    0Reply
  • Account Closed
    Investor · Leander, TX · Member since 2016 · 299 posts · 402 votes
    4y

    Atlanta market, booked solid through March-May so far at $150 a night.

    0Reply
  • Kurt S.
    Willow Grove, PA · Member since 2014 · 10 posts · 7 votes
    4y

    We’re at the Jersey shore and normally by now we’re 100% booked for the summer season…this year we have 1 week rented. I agree that I think inflation is a big factor. I’ve since lowered my rates and hopefully things pick up. I think most people book their shore homes late February, March, and early April…hopefully they’re are a few stragglers left 😊

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Thomas J.:

    People really need to stop acting like short term rentals are not a business that is affected by basically everything.  Most real estate investors have no business experience, I didn't until I got into short term rentals a decade ago.  The travel business is super, super complicated.  

    Long term renters can pay rent or they can't.  **** breaks routinely. You have insurance, and we're in a housing shortage.

    Short term renters are customers and with customers if they don't have money or can't travel, guess what? They ain't buying. Everything from the weather to cancelled events to airline prices to gas prices and seasons and tons of other factors I'm leaving out, affect your income. And now you have everyone and their mother posing as a pro listing anything they want with vinyl siding and formica counters on airbnb and calling themselves short term rental gurus. Airbnbs biggest mistake is to let any moron off the street listing their POS for rent. AIrbnb is a business too... you're not a business owner if you're basically an airbnb employee and how so similar this is to the ebay boom of yore.  

    If you're experiencing a lull in sales, do something about it. No one else is coming, it's up to us.


    just an observation but I think STR in areas that are highly regulated and require permits might be a safer bet.. Even though your paying a big premium for them but at least with those you dont have to worry about over saturation IE think Napa Valley Charleston SC etc.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Stephanie JacobsonBusiness Member
    Real Estate Agent · Ithaca, NY · Member since 2016 · 429 posts · 324 votes
    4y
    Quote from @Uzoma Oranu:

    @Nick Rutkowski

    AirBnb no longer allowed in Ithaca NY?

    They’ve put restrictions on the town of Ithaca but not the surrounding areas… so far. 
    0Reply
  • Corbin Loveless
    Real Estate Agent · Knoxville, TN · Member since 2020 · 54 posts · 42 votes
    4y
    Quote from @Michael Hamby:
    Quote from @Dustin Sanders:

    @Quinn Olivarez I have the 3 markets I'm in listed below:

    - Pensacola, FL

    - St Petersburg, FL (technically Gulfport, FL)

    - Helen, GA

    The Pensacola ones aren't doing well?  I am about to start 3 here.   I have heard some agents saying the airbnb market in Pensacola is becoming saturated with some many investors doing airbnb now.   I know there is a severe shortage on the availability of long term rentals.   I am hearing 25 applications for 1 unit in some cases.  Maybe that is the correct pivot?


    To Michael's point, maybe there is an opportunity to pivot to the medium-term space. Hearing some interesting things lately about partnering with insurance companies to provide temporary housing to their clients. Of course, there are also plenty of young professionals roaming the country that now work from home. 

    Google says there are 5MM travel nurses in the US, and there are now 11MM digital nomads in the US...I think the digital nomad group is a segment of the market that doesn't get much attention. Anecdotally, I know three husband/wife couples that I went to school with that are now touring the country due to their ability to work from anywhere. I think this will be an underserved market for the next few years in the medium-term rental space.  

    I don't think anyone knows what's going to happen next with the domestic travel or tourism segment of the economy...but I agree with several folks in the comments above- Inflation is having (and will continue to have) an impact on consumer spending. Fuel prices will affect a traveler's budget, BUT so will jet fuel prices. If fuel is expensive, it won't be any cheaper to fly. The best place to weather uncertainty in STRs is your regional vacation markets with proven demand- Smokies, Gulf Shores, Blue Ridge, etc. How do you hedge against market saturation? Differentiate your rental like @John Underwood mentioned- amenities, prime location, benchmark on your competitors.

    1Reply
  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    4y

    Seen low demand on my rental in Sevierville, TN. I've been dropping prices but very few bites.

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    4y

    @Dustin Sanders Aside from gas airfares are up too. Check the competition and maybe better price for longer stays. Find an edge over your competition.

    The other option is wait and see. I know some people are waiting to book especially bigger propertiies

    0Reply
  • Nick Rutkowski
    Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    @Uzoma Oranu

    Pardon, I meant to say regulated. Hosts are limited to the amount of houses they can rent and the number of days they can rent out. Some municipalities in the county are moving to outlaw completely.

    0Reply
  • Rolly Weaver
    Helen, GA · Member since 2015 · 96 posts · 68 votes
    4y

    @Dustin Sanders, small world. I own Short term rentals and a hotel in Helen. 

    From what I've seen and heard from fellow property owners, the higher end properties, have experienced a little downturn, but that's normal for the winter months.

    Things are already getting cranked up with the warming weather. 

    1Reply
  • Dan Hellweg
    Real Estate Agent · Chicago, IL · Member since 2020 · 8 posts · 6 votes
    4y
    Quote from @Dustin Sanders:

    Is anyone else experiencing slow bookings? I am in 3 different vacation heavy markets and my April & May calendars are at about 25% occupancy.

    Many of my peers are still seeing pretty good numbers. People are excited to get back into city spaces so some markets are doing very well on STR while others looks to be drying up (travel that was influenced on the circumstances). However, with the rising prices on gas, food, etc, it will probably take a hit. I often ask friends/family what they are doing for trips. The last two years during Covid were simple weekend trips, some flying, etc but pretty much staying at Airbnbs but I am getting a strange mix of traveling overseas since it made no sense to travel or doing nothing really. HA...not a scientific test but a little sample.

    0Reply
  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    4y

    @Jay Hinrichs

    Off topic

    Any plans for the Salmonfly Hatch this year?

    0Reply
  • Andrea Kendall
    Investor · Dallas, TX · Member since 2020 · 19 posts · 21 votes
    4y
    Quote from @Nathan Gesner:

    Is anyone else anticipating a slowing, just as a matter of course? People were pent up in houses for far too long and then unable/unwilling to fly or stay in hotels because their fear of COVID was so strong. I saw a huge spike in vacation rental use and tourism these past two years. Yellowstone saw visitors increase from 3.8 million to 4.8 million in one year. I went to Hawaii in July and Oahu was busier than it's ever been, by far. On top of that, there's been a buying frenzy for vacation rentals the past two years.

    It wouldn't surprise me to see the vacation rental market cool off as tourists start to fly and move back into hotels/motels. But maybe I'm missing something.


     This. I have been thinking the exact same thing about drive to destinations vs fly to destinations, so it really depends on your market. I also agree with another poster who mentioned the inflation and how many families just can't afford any travel/vacation at the moment. I am not so sure I would believe what the CEO of AirBnB says either...

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    No difference between this year and last year. Actually a little busier this year. I get that inflation may get a few people to change their vacation habits, but ours are places where people with more money would stay.

    This is probably a case-by-case deal where everyone will have different results.....

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Eric Bilderback:

    @Jay Hinrichs

    Off topic

    Any plans for the Salmonfly Hatch this year?


     not on the Deschutes  going to the bitterroot ( hamilton mt)  can fish out of raft .. Deschutes wading kills me :)   

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    4y
    To add a few more data points, I am operating in central Florida, East coast barrier island.  I am full right now, and have three people in a queue this week wanting a house for next year. The RevPar (divides the daily rental revenue by the number of properties available) for March on a 3 bedroom is $347 and for a 4 bedroom is $470, according to AirDna.  Our market looks to slow down at the half way mark in August.
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Michael Baum:

    We have been booking strong since Nov 2021. We are full for the summer. May is almost full and I have bookings for April. We have guests in our lake house right now. We rarely get anyone that early as snow is still a possibility in April. The lake is too cold to use, but we have guests biking and walking the bike trail etc.

    Looks like it will be a gang buster year for 2022.

    North Idaho, Lake Coeur D'Alene.


     Lake Coeur D'Alene is a 1% er place to go  I can see where you would never have trouble with a lake front home there.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free