The Future Of Short Term Rentals
Rental Property Investor · Columbia, SC · Member since 2020 · 302 posts · 186 votes
The Future Of Short Term Rentals
Most Popular Reply
Investor · United States · Member since 2020 · 202 posts · 284 votes
4yMy predictions …
- Demand will reach some sort of equilibrium in the next 5 years or so. Airbnb is still “new” to a lot of late adopters, but it’s only a matter of time until everyone is using it (remember, it didn’t take that long for grandparents to start using Facebook … Airbnb/ VRBO will be no different)
- Larger cities will continue limiting STRs due to the effect they have on neighborhoods and communities. I would expect even very pro-STR cities like Phoenix to rethink their regulations to some extent in the years to come. It's just too easy for investors to convert their housing portfolios to STRs overnight, and this is raising eyebrows across America, especially in cities. Add in the current lack of supply in the housing market plus aging millennials trying to buy their first slice of the American dream and the stage is set for more regulations
- Some early investors will make a killing in areas that limit STRs as they get grandfathered into a limited number of permits linked to properties (not people) which are transferable to new investors who will buy their properties at a significant premium. But other investors will get screwed when municipalities write laws in ways that prevent transferring permits, or that outlaw STRs altogether
- Vacation markets will tend to be more STR-friendly on average due to the income they bring to areas that depend on tourism. These markets will be particularly interesting to watch as they develop further ... Preaching to the choir on this one
- Returns will eventually settle somewhere that is fair for the level of risk STR investments represent. In the past (and even still in some markets today) it’s been relatively easy to cashflow like crazy … that’s because Airbnb lifted demand so much that it’s taken supply awhile to catch up. But supply WILL catch up eventually. I imagine yields will level out somewhere that compensates owners for 1) the cost of property management, and 2) revenue volatility (more on this below)
- We will start to see 2 things happening in vacation markets where risk adjusted yield is higher than it “should” be:
1) New entrants will pop up, increasing supply and lowering yield in markets with low barriers to entry for most investors regardless of when they purchased. This is most applicable to markets with space for lots of supply growth. Keep in mind this can happen WAY faster than it does in traditional housing markets bc new construction is not the only way to increase supply of STRs… existing homes can simply be converted.
2) Home prices will rise significantly in areas with some sort of barrier or boundary limiting supply growth (example: beachfront properties, areas surrounded by water or protected land, capped permits, prime locations close to attractions, etc). This is because these “homes” are being valued as hospitality assets. As prices rise, yields will decline for new investors (but not for those who got in early at arbitrage prices)
- Many investors will lose their shirts during the next recession in their market (or even as supply grows in their market) bc they purchased STRs at too-high prices assuming revenues would stay consistent like rents have in housing (they wont - hospitality spending is discretionary, housing is not, so hospitality demand will swing with the size of peoples wallets). Using an exclusively housing lens to make hospitality investments is shortsighted, and a lot of us are vulnerable to this oversimplification bc of our past investing history in residential RE. Profit margins simply need to be higher in hospitality to weather the storms (that, or you need larger cash reserves/ geographically diversified portfolios)
-Large, institutional investors will eventually move into the space just like they have in housing. This will put upward pressure on prices, and yields will compress further. This will be a great opportunity for those of us with portfolios to exit at a premium, but it will also make it hard for those starting out to gain traction. Get in NOW.
- Larger companies will enter the space with custom-built STRs that better serve the needs of guests. Customers will be happier with these options than with what’s on the market today, and that will lower yield for those of us who can’t compete. Remember - this whole phenomenon is just a growth in demand for GROUP LODGING. People used to buy multiple hotel rooms for their family/ friends bc they didn’t have access to better alternatives. Enter Airbnb and all of the sudden we realize there is all this underserved demand for connection-oriented hospitality experiences. But there is NO reason to believe that properties originally designed to be homes that were later converted to hospitality assets should outperform the purpose-built hospitality assets of the future.
- The most successful investors will be the ones who invested in SUSTAINABLE sources of competitive advantage. Examples: properties in areas zoned exclusively for STRs, purpose-built STRs, prime location relative to attractions, views, unique architecture, and other amenities that are time and capital intensive to replicate like indoor pools, etc… That average looking house in an average location you’re looking at on Zillow might cashflow today at an affordable price, but it is wildly vulnerable tomorrow. Side note: some of us will make a killing flipping average properties like this and selling them as turn-key investments to other investors… and it will be those sellers’ responsibility to educate buyers about the associated risks so that they can be prepared
Great interior design and photos will become way more common. Many of us can print money today with great design because it delights guests and makes our listings stand out from all of the average ones nearby. But the delighters of today will become the base expectations of tomorrow as new entrants breathe new life into an old asset class. This will be especially true of new/ fast growing vacation markets that weren't really on the map before Airbnb. Search listings in Joshua Tree and surrounding areas and you'll see what I mean (I know, I know, those markets have always "been there", but the growth you're seeing today is due to Airbnb plain and simple). On the contrary, legacy markets like beaches will lag in design since all the prime real estate is already owned by old-school STR investors who see no reason to change a formula that has been working for them
Finally, some of us who played our cards right (hopefully MANY of us) will become phenomenally wealthy. Our original SFH STR investments will be stepping stones to larger, commercially zoned "multi-family" hospitality investments like motels, hotels, etc. And the best of us will play leading roles in redefining what hospitality means to operators and guests alike
Hah, I really didn’t intend to write a novel when I started this but I guess I did. Some of these predictions are no doubt wrong … and I hope NO ONE loses their shirts … maybe I will lose my own shirt … but some of these predictions are already happening before our eyes. It all seems a bit like the Wild West, or a case study out of an economics textbook … maybe it actually will be in a textbook one day
But I can say one thing for sure: on a personal level this is all so intoxicatingly interesting to me, and I feel so undeservingly lucky to be spending my days devoting this much attention to it. And as Ive started to spend more and more time on these forums with you all I can see I am in great company :)
14 Replies
- 4yDave StokleyBusiness MemberProperty Manager · Cleveland, OH · Member since 2015 · 705 posts · 799 votes
Do you really think that the number of units is growing faster than the number of users? I honestly don’t know but it’s been my perception lately that users is growing much faster than units. It’s a lot easier to book than to list. Would love to see the actual data!
- 4yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
It could also drive increased anti STR laws. Just saw a new ban for one of the Hawaiian Islands.
- Lender · PA · Member since 2019 · 535 posts · 461 votes4yOver the last several years STR products are slowly being accepted in the Non QM space. Banks are reluctant to finance STRs and treat them as a hospitality loan. That makes it more difficult. The reason that STR financing has slowly increased is Non QM lenders have become more comfortable with the risks associated with potential zoning amendments. Of course banks are not so comfortable.
Quote from @Cole Simpson:
It's hard to say exactly what the future will be like, but it seems likely that short-term rentals could become more popular in the years ahead. This would mean an increase in available units and lower prices for those who rent them out! How do you think the market for short-term rentals will change in the future??
So to answer your question with a question: What is your risk tolerance? You can obtain financing. So are you comfortable with some risk or do you need a sure thing? One wat to reduce your risk is to check with the zoning office for the target location adn see wha the climate is in the Community.
Personally, I believe the STR share of the hospitality market is only going to increase due to the after effects of Covid and,the need for young families to be able to travel and stay as a unit. Also, have you seen the restaurant prices these days, having a full kitchen if you have a young family, is a big deal.(Your own bedroom is also nice!)
Once you have mastered the STR business the returns are significantly greater than long term rentals. STR is not your bag, if you want to manage your properties as passive income. Running a STR is similar to a hotel. You must manage reservations, cleaning, damages, complaints, parties and so forth. Even if you have a property management company in place it still requires your time and attention to create a healthy return. Also to insure that you do not get bad reviews on the various platforms.
If you decide to be in the STR business you will need to know about available financing. All commercial property lending is based in part on, debt service coverage. STRs have significantly greater income than long term rentals. You need the lender to base the maximum loan size on the actual or, projected STR income. Their are two methods lenders use to determine income to calculate debt service coverage for a STR. First, if the property is an existing STR the underwriter will base the DSCR on the actual established income. Second, for a newly created STR the lender calculates D.S.C.R. by using projections from firms such as AIRDNA.
Interest rates on Loans on declared STRs are slightly higher than LTRs. You have fewer options to find financing for a STR. So if you are considering purchasing a property, and creating a new STR, you need to consult with you mortgage lender or broker. Make sure that the income or, projected income, will support the loan amount that you will require. Generally, 75-80 percent is the maximum LTV available on STR financing. Assemble your team before you start prospecting Good luck. - Investor · United States · Member since 2020 · 202 posts · 284 votes4y
My predictions …
- Demand will reach some sort of equilibrium in the next 5 years or so. Airbnb is still “new” to a lot of late adopters, but it’s only a matter of time until everyone is using it (remember, it didn’t take that long for grandparents to start using Facebook … Airbnb/ VRBO will be no different)
- Larger cities will continue limiting STRs due to the effect they have on neighborhoods and communities. I would expect even very pro-STR cities like Phoenix to rethink their regulations to some extent in the years to come. It's just too easy for investors to convert their housing portfolios to STRs overnight, and this is raising eyebrows across America, especially in cities. Add in the current lack of supply in the housing market plus aging millennials trying to buy their first slice of the American dream and the stage is set for more regulations
- Some early investors will make a killing in areas that limit STRs as they get grandfathered into a limited number of permits linked to properties (not people) which are transferable to new investors who will buy their properties at a significant premium. But other investors will get screwed when municipalities write laws in ways that prevent transferring permits, or that outlaw STRs altogether
- Vacation markets will tend to be more STR-friendly on average due to the income they bring to areas that depend on tourism. These markets will be particularly interesting to watch as they develop further ... Preaching to the choir on this one
- Returns will eventually settle somewhere that is fair for the level of risk STR investments represent. In the past (and even still in some markets today) it’s been relatively easy to cashflow like crazy … that’s because Airbnb lifted demand so much that it’s taken supply awhile to catch up. But supply WILL catch up eventually. I imagine yields will level out somewhere that compensates owners for 1) the cost of property management, and 2) revenue volatility (more on this below)- We will start to see 2 things happening in vacation markets where risk adjusted yield is higher than it “should” be:
1) New entrants will pop up, increasing supply and lowering yield in markets with low barriers to entry for most investors regardless of when they purchased. This is most applicable to markets with space for lots of supply growth. Keep in mind this can happen WAY faster than it does in traditional housing markets bc new construction is not the only way to increase supply of STRs… existing homes can simply be converted.
2) Home prices will rise significantly in areas with some sort of barrier or boundary limiting supply growth (example: beachfront properties, areas surrounded by water or protected land, capped permits, prime locations close to attractions, etc). This is because these “homes” are being valued as hospitality assets. As prices rise, yields will decline for new investors (but not for those who got in early at arbitrage prices)
- Many investors will lose their shirts during the next recession in their market (or even as supply grows in their market) bc they purchased STRs at too-high prices assuming revenues would stay consistent like rents have in housing (they wont - hospitality spending is discretionary, housing is not, so hospitality demand will swing with the size of peoples wallets). Using an exclusively housing lens to make hospitality investments is shortsighted, and a lot of us are vulnerable to this oversimplification bc of our past investing history in residential RE. Profit margins simply need to be higher in hospitality to weather the storms (that, or you need larger cash reserves/ geographically diversified portfolios)
-Large, institutional investors will eventually move into the space just like they have in housing. This will put upward pressure on prices, and yields will compress further. This will be a great opportunity for those of us with portfolios to exit at a premium, but it will also make it hard for those starting out to gain traction. Get in NOW.
- Larger companies will enter the space with custom-built STRs that better serve the needs of guests. Customers will be happier with these options than with what’s on the market today, and that will lower yield for those of us who can’t compete. Remember - this whole phenomenon is just a growth in demand for GROUP LODGING. People used to buy multiple hotel rooms for their family/ friends bc they didn’t have access to better alternatives. Enter Airbnb and all of the sudden we realize there is all this underserved demand for connection-oriented hospitality experiences. But there is NO reason to believe that properties originally designed to be homes that were later converted to hospitality assets should outperform the purpose-built hospitality assets of the future.
- The most successful investors will be the ones who invested in SUSTAINABLE sources of competitive advantage. Examples: properties in areas zoned exclusively for STRs, purpose-built STRs, prime location relative to attractions, views, unique architecture, and other amenities that are time and capital intensive to replicate like indoor pools, etc… That average looking house in an average location you’re looking at on Zillow might cashflow today at an affordable price, but it is wildly vulnerable tomorrow. Side note: some of us will make a killing flipping average properties like this and selling them as turn-key investments to other investors… and it will be those sellers’ responsibility to educate buyers about the associated risks so that they can be prepared
Great interior design and photos will become way more common. Many of us can print money today with great design because it delights guests and makes our listings stand out from all of the average ones nearby. But the delighters of today will become the base expectations of tomorrow as new entrants breathe new life into an old asset class. This will be especially true of new/ fast growing vacation markets that weren't really on the map before Airbnb. Search listings in Joshua Tree and surrounding areas and you'll see what I mean (I know, I know, those markets have always "been there", but the growth you're seeing today is due to Airbnb plain and simple). On the contrary, legacy markets like beaches will lag in design since all the prime real estate is already owned by old-school STR investors who see no reason to change a formula that has been working for them
Finally, some of us who played our cards right (hopefully MANY of us) will become phenomenally wealthy. Our original SFH STR investments will be stepping stones to larger, commercially zoned "multi-family" hospitality investments like motels, hotels, etc. And the best of us will play leading roles in redefining what hospitality means to operators and guests alike
Hah, I really didn’t intend to write a novel when I started this but I guess I did. Some of these predictions are no doubt wrong … and I hope NO ONE loses their shirts … maybe I will lose my own shirt … but some of these predictions are already happening before our eyes. It all seems a bit like the Wild West, or a case study out of an economics textbook … maybe it actually will be in a textbook one day
But I can say one thing for sure: on a personal level this is all so intoxicatingly interesting to me, and I feel so undeservingly lucky to be spending my days devoting this much attention to it. And as Ive started to spend more and more time on these forums with you all I can see I am in great company :)
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes4y
Quote from @Sean Bramble:
My predictions …
- Demand will reach some sort of equilibrium in the next 5 years or so. Airbnb is still “new” to a lot of late adopters, but it’s only a matter of time until everyone is using it (remember, it didn’t take that long for grandparents to start using Facebook … Airbnb/ VRBO will be no different)
- Larger cities will continue limiting STRs due to the effect they have on neighborhoods and communities. I would expect even very pro-STR cities like Phoenix to rethink their regulations to some extent in the years to come. It's just too easy for investors to convert their housing portfolios to STRs overnight, and this is raising eyebrows across America, especially in cities. Add in the current lack of supply in the housing market plus aging millennials trying to buy their first slice of the American dream and the stage is set for more regulations
- Some early investors will make a killing in areas that limit STRs as they get grandfathered into a limited number of permits linked to properties (not people) which are transferable to new investors who will buy their properties at a significant premium. But other investors will get screwed when municipalities write laws in ways that prevent transferring permits, or that outlaw STRs altogether
- Vacation markets will tend to be more STR-friendly on average due to the income they bring to areas that depend on tourism. These markets will be particularly interesting to watch as they develop further ... Preaching to the choir on this one
- Returns will eventually settle somewhere that is fair for the level of risk STR investments represent. In the past (and even still in some markets today) it’s been relatively easy to cashflow like crazy … that’s because Airbnb lifted demand so much that it’s taken supply awhile to catch up. But supply WILL catch up eventually. I imagine yields will level out somewhere that compensates owners for 1) the cost of property management, and 2) revenue volatility (more on this below)- We will start to see 2 things happening in vacation markets where risk adjusted yield is higher than it “should” be:
1) New entrants will pop up, increasing supply and lowering yield in markets with low barriers to entry for most investors regardless of when they purchased. This is most applicable to markets with space for lots of supply growth. Keep in mind this can happen WAY faster than it does in traditional housing markets bc new construction is not the only way to increase supply of STRs… existing homes can simply be converted.
2) Home prices will rise significantly in areas with some sort of barrier or boundary limiting supply growth (example: beachfront properties, areas surrounded by water or protected land, capped permits, prime locations close to attractions, etc). This is because these “homes” are being valued as hospitality assets. As prices rise, yields will decline for new investors (but not for those who got in early at arbitrage prices)
- Many investors will lose their shirts during the next recession in their market (or even as supply grows in their market) bc they purchased STRs at too-high prices assuming revenues would stay consistent like rents have in housing (they wont - hospitality spending is discretionary, housing is not, so hospitality demand will swing with the size of peoples wallets). Using an exclusively housing lens to make hospitality investments is shortsighted, and a lot of us are vulnerable to this oversimplification bc of our past investing history in residential RE. Profit margins simply need to be higher in hospitality to weather the storms (that, or you need larger cash reserves/ geographically diversified portfolios)
-Large, institutional investors will eventually move into the space just like they have in housing. This will put upward pressure on prices, and yields will compress further. This will be a great opportunity for those of us with portfolios to exit at a premium, but it will also make it hard for those starting out to gain traction. Get in NOW.
- Larger companies will enter the space with custom-built STRs that better serve the needs of guests. Customers will be happier with these options than with what’s on the market today, and that will lower yield for those of us who can’t compete. Remember - this whole phenomenon is just a growth in demand for GROUP LODGING. People used to buy multiple hotel rooms for their family/ friends bc they didn’t have access to better alternatives. Enter Airbnb and all of the sudden we realize there is all this underserved demand for connection-oriented hospitality experiences. But there is NO reason to believe that properties originally designed to be homes that were later converted to hospitality assets should outperform the purpose-built hospitality assets of the future.
- The most successful investors will be the ones who invested in sources of SUSTAINABLE sources of competitive advantage. Examples: properties in areas zoned exclusively for STRs, purpose-built STRs, prime location relative to attractions, views, unique architecture, and other amenities that are time and capital intensive to replicate like indoor pools, etc… That average looking house in an average location you’re looking at on Zillow might cashflow today at an affordable price, but it is wildly vulnerable tomorrow. Side note: some of us will make a killing flipping average properties like this and selling them as turn-key investments to other investors… and it will be those sellers’ responsibility to educate buyers about the associated risks so that they can be prepared
Great interior design and photos will become way more common. Many of us can print money today with great design because it delights guests and makes our listings stand out from all of the average ones nearby. But the delighters of today will become the base expectations of tomorrow as new entrants breathe new life into an old asset class. This will be especially true of new/ fast growing vacation markets that weren't really on the map before Airbnb. Search listings in Joshua Tree and surrounding areas and you'll see what I mean (I know, I know, those markets have always "been there", but the growth you're seeing today is due to Airbnb plain and simple). On the contrary, legacy markets like beaches will lag in design since all the prime real estate is already owned by old-school STR investors who see no reason to change a formula that has been working for them
Finally, some of us who played our cards right (hopefully MANY of us) will become phenomenally wealthy. Our original SFH STR investments will be stepping stones to larger, commercially zoned "multi-family" hospitality investments like motels, hotels, etc. And the best of us will play leading roles in redefining what hospitality means to operators and guests alike
Hah, I really didn’t intend to write a novel when I started this but I guess I did. Some of these predictions are no doubt wrong … and I hope NO ONE loses their shirts … maybe I will lose my own shirt … but some of these predictions are already happening before our eyes. It all seems a bit like the Wild West, or a case study out of an economics textbook … maybe it actually will be in a textbook one day
But I can say one thing for sure: on a personal level this is all so intoxicatingly interesting to me, and I feel so undeservingly lucky to be spending my days devoting this much attention to it. And as Ive started to spend more and more time on these forums with you all I can see I am in great company :)
Nice job thinking through the possibilities - I don't subscribe to all of them but you obviously have thought about it enough to write coherently about it, and that's almost always part of the recipe of success!
Personally, I think STR is here to stay for sure but that people will not be getting anywhere near as rich as they think they will be with it. A lot of areas will ban it outright - I for sure wouldn't want to live next door to a STR - and other areas will become so saturated with units that the price will drive a lot of it out. A place I go to on vacation every year has STRs everywhere, and it's virtually unprofitable to buy a property there to use for that purpose because there's so many STRs that rates are lower than what it costs to stay in a hotel, which is nuts. Last February I stayed in a 4br/3ba place on a lake with a private heated pool for $700 for 7 days. And this is a popular destination.
I think the future of STR is going to be more the model of "house-swapping", i.e. when someone is not going to be using their own house, they rent it out. That can make a ton of sense because it turns your primary cost of shelter into something that can make some money. Alternatively I can see ADUs and basements turned into STRs because the cost of administration and management can be low enough to be absorbed.
Skyline Properties - Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 754 posts · 504 votes4y
Quote from @Cole Simpson:
It's hard to say exactly what the future will be like, but it seems likely that short-term rentals could become more popular in the years ahead. This would mean an increase in available units and lower prices for those who rent them out! How do you think the market for short-term rentals will change in the future??
Bottom line, STR's (Thank you everyone for NOT calling them "AirBNB/s") have outpaced hotels/motels/resorts, because it's a more practical fit for the tenant/vacationer demand. It provides a better, more enticing solution to shopping exactly what we want (privacy, features, size, cost, etc) and getting the best and most memorable outcome. Until there is a better solution to this, we will only see an increase in STR demand. One day, there will be a better option- no clue what this is. For now, STR's are the best solution for easy/comfy/luxury travel, and trust and general use are on the rise. In addition to this, typical vacation and vacation lodging budget's are bigger than ever. However, depending on what happens, economically, we may see a decrease in the budget aspect of this. BUT- STR trust/use will continue to rise, which will help balance this for STR owners.
- 4yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
Wondering why hotel companies are not teaming up with the national SFR rental companies to leverage their economies of scale and take over the space.
Logical Property Management4.9469 Reviews - 4yKerry BairdPro MemberRental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
@Drew Sygit, my husband forwarded me an email today from Marriott offering a private home in Destin (or Palm Springs, Gatlinburg, Mexico) under their "Homes & Villas" branding. "Private homes with the assurances of Marriott" saying it is "worry free" and "professionally cleaned and inspected homes." You nailed it.
- 4yKerry BairdPro MemberRental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
^^^Relating to my previous post, I went to the Marriott site and have found this:
Can I list my home with Homes & Villas by Marriott International?
We would love to consider your home! Individual homeowners will need to sign up with one of our home management companies who understand the standards and requirements of our platform. To be connected with the management companies relevant to your home’s location, contact us.
I am a property management company. How can I list my homes on Homes & Villas by Marriott International?
If you are a home management company interested in working with us, please contact us and tell us more about your portfolio. - 4yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
@Kerry Baird now if only I could get those lottery numbers right!
Logical Property Management4.9469 Reviews - 4yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
I believe that STRs are on the upward side of the graph, and not very far up it at this point. Sure we all know about them because it's our business, but the average Joe still has never styed in one. I'd bet 80-90% of Americans have not stayed in a STR. Especially true for older folks I find.
It's still a great time to get into it, given that you choose the right area and do your research. Maybe another couple year window for investors I think....but I'm just going on what I see......
I don't think the big Corporations getting into it is any worry to us...as soon as they take over and standardize everything, the magic is gone, they'll screw it up for sure....they can't replicate the 'Mom and Pop' feel. Even if they add kitchens and laundry rooms, it'll still be too synthetic.....
- Member since 2022 · 1k+ posts · 1k+ votes4y
Agreed! The detailed touches and individualized service that a good host can provide, especially when catered to a specific market and customer demographic, is simply not scalable at the corporate level. Much more complicated than hiring a bull dog to collect rent.
- 4yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesI am that bull dog. I manage my many LTR'S and STR'S. I like to diversify and not have all my eggs in one basket. In fact I do all things RE related. There are many "Johnny come lately" that see STR'S as a get rich quick method, and it could be for people that scale to large levels. Some people are doing these anywhere and everywhere weather the are really suited for a property or location. I only buy nice places in a vacation destination where someone would take their family and feel good about spending a bunch of money and make memories.
Quote from @Jon Martin:
Agreed! The detailed touches and individualized service that a good host can provide, especially when catered to a specific market and customer demographic, is simply not scalable at the corporate level. Much more complicated than hiring a bull dog to collect rent.
- Investor · TX · Member since 2020 · 57 posts · 60 votes4y
It depends on the location and local regulations. Most major cities and HOAs are limiting the amount of STR in a certain radius. If you pick the right city and location with low supply, growing population, growing jobs, I think prices will continue to go up. A couple of ways to protect yourself is buy the property at the right price/not overpay so your overhead is low. If you also provide the best product, best customer service, and best price, you will be just fine and still be very profitable.
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