How is the short-term rental market?

Question

We are entering a bit of a low season for short rentals, how are you holding up in the market?. How do you see your bookings this season and how do you drive your ads?

Stefanie Johnson Sykes · Answer

Hey Estrella, I'm in your market and have consistent bookings for this time of year. Our STR typically stays booked on the weekends which I would like to change this year. I advertise on my Social media, change prices if unit is still vacant, use discount rates. Are you on all platforms? Possibly sending emails to prior guests with a discount could also drive some traffic. Also depending on your location you can look at events in that area and promote that with your STR. I'm not super technical so those are some things I do. Hope that helps!

Jon Martin · Answer

January is January . . . Unless you are in the Keys, Sedona, Hawaii, ski area etc. I had a strong March through December but this is my first January and February.

Calendar was not empty but definitely lite, so I got anxious and dropped the weekend rate by $20/night. Immediately got a booking but had a bad feeling because the guest only had one review and their payment (via ABNB) took a short while to clear. Of course, my instinct was correct and the guest added 2 hours to the clean and seemed to help themselves to several bathrobes (that I provide because of the long walk through other parts of the house to the single bathroom).

Moral of the story is that it's better to hold your rates firm and take the hit for a few months, those guests will end up costing you more anyway.

Collin Hays · Answer

Slow seasons are part of it. Assuming your property is up to snuff in terms of condition and amenties, it is purely rate driven. If you want more bookings, cut rates, until it doesn't make economic sense to do so.

Jon Martin · Answer

Thanks @Chad McMahan sounds like pretty standard stuff that a lot of subpar hosts and listings are dealing with!

Are you seeing Cottonwood well booked through the winter months as well?

Mackenzie Grate · Answer

I agree that it's all about rates this time of year. But here's how I do it. I lower the rate every other day and require a 2 day minimum stay. That way it helps keep the overall rate a bit higher. I also let all my previous guests know I do discounts for returning guests. I message them when they check out, and on Instagram if they follow my page. That has drum up a couple of leads recently too. Lastly, I'm on multiple sites: Airbnb, VRBO, Bookings.com, etc. The more exposure, the more possibility of bookings!

Good luck! You got this! :)

Jon Martin · Answer

@Chad McMahan can you comment on the main sources of failure? Bad location, overpriced, poor decor & management? Or simply took on too large of a payment relative to revenue?

I like Sedona as a seasonal offset but it's a bit out of my league at the moment . . . Hopefully in a few years I think I'll be able to jump in. Thanks in advance

Chad McMahan · Answer

Property: Most common problems are buying a property that won't stand out as nice looking. Something common/plain that looks like everything else. Doesn't need to be a resort, but it needs to photograph well and "pop" on the rental listings, so it's very clickable.

Location: In Sedona every location is pretty good, but some are much better than others. Close drive or even better is biking/walking to trailheads, creek is a plus but not necessary, some areas are close drive to everything- these do great.

Features: I have tons of podcasts and Youtube videos about this. There is a sliding scale of sorts, for what kicks butt out here. I'm happy to discuss on the phone as often this is better verbally, so we can have some Q&A, etc. Views are obviously ideal, but not necessary with other features.Remodel/improvements: 1 of many examples is using the garage as a game room, instead of parking. In this area, that works well.

You may want to consider the next door town of Cottonwood. $500k-$800k. My Cottonwood STR clients are getting strong occupancy and ROI. It has slightly different property needs and features to focus on.

Happy to discuss.

Andrew Steffens · Answer

We are actually up about 14% YoY for what is on the books for 2024 against what was on them last year.  Obviously last year was a down year for just about everyone, and most did not realize it until Mar/Apr.  I think this year will be a rebound year for most.

How is the short-term rental market?

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