Investing in vacation rental property is extremely popular right now, but it’s not the same industry it was five, ten, or even two years ago. To succeed as a VRP investor, you’ll need to stay on top of the latest trends. With that in mind, here is what happening in the world of vacation rental property today:
- It’s all about third-party services. As the industry has matured, it’s gotten more and more difficult for Mom and Pop operators to succeed without help. Third party rental management companies that use best practices have become a game-changer in the industry, offering both higher occupancy rates and higher average daily rates to property owners.
- Owners are investing in marketing—big time. Competition is fierce among vacation rental property owners, which is why marketing is becoming more and more important. Hosts are looking to SEO and engaging professional photographers and designers to ensure their offerings are on par with luxury resorts in terms of marketing.
- Services matter. Savvy VRP owners are setting their offerings apart by offering unique services to their guests such as guided tours or other experiences.
- Demand for VRP is growing among young travelers. Millennials who became comfortable with vacation rentals as singles are now traveling with their families or with groups. This is creating more demand for vacation home rentals.
- The VRP industry is strong. According to a Goldman Sachs Global Investment Research survey of 2,000 U.S. consumers, if people have stayed in peer-to-peer lodging [P2P] in the last five years, the likelihood that they prefer traditional hotels is halved (79 percent vs. 40 percent).”
Interested in learning more about the ins and outs of VRP ownership? Pick up a copy of LIFE AS A VACATION®: The Ultimate Buyer’s Guide to Vacation Rental Property.