Beginner’s Guide to Investing in STR’s
Despite impacts on the travel industry due to the pandemic over the last few years, the short term rental market is just as profitable as ever. With travelers booking more rentals than ever before, 2022 will be the prime time to get in the game.
A short term rental is a fully furnished living space available for short periods of time. Many travelers prefer staying in these types of vacation homes instead of hotels, due to the opportunity for more space and beds, access to kitchen and laundry, and being plugged into a location with locals rather than tourists and other travelers. It can be a very lucrative investment, typically generating a steady income of a few hundred dollars up to a few thousand dollars a month. In October 2020, Airbnb hosts earned over $110 billion in rental income all across the planet. It is obvious that investing in a short term rental property can be highly rewarding with the right combination of factors and consistent work.
Know Your Market & Identify Your Target Guest
It is important to understand your market and the types of people that travel to your destination. According to avantstay.com, Central Oregon is ranked 17th in the top 25 places to buy a vacation home. Central Oregon consistently sees 4.5 million visitors a year. As one of the greatest outdoor destinations in the West, Bend’s abundant beauty draws the attention of hikers, bikers, rafters, and skiers, who enjoy all the area has to offer. Besides all the outdoor wonders, Bend is also an up and coming culinary scene and home to the largest Ale Trail in the West. Being able to offer a space for these traveler’s to appreciate will allow your property to stand out from the rest!
Location
If your goal for your rental is to be as booked and busy as possible, it is important to choose a location where traveler’s will be visiting year round. For example, destinations with:
Professional/college sports teams
Hospitals
Large metropolitan areas
College towns
Vacation areas
Customer Service
The best way to earn repeat customers and gain word of mouth traction is by providing the highest level of customer service. Creating a memorable experience will draw people back time and time again. It's important to be available to your guests to answer any questions and assist during their stay.
Marketing
In order to earn as many bookings as possible, it's important to market across all platforms and sites, as well as a direct booking option, which will save you and your renters from having to pay additional fees.
Here are a few places you can list your rental:
In addition to marketing on these sites, it’s extremely beneficial to invest in professional design and photography to showcase your property. It’s important to highlight the property’s proximity to local attractions, dining, and trails! These platforms are pretty crowded, so creating a space that’ll stand out from the rest will not only get your listing looked at, but will get it booked!!
Maximize Your Investment
Short term rentals offer an incredible opportunity to add to your income streams! It takes some planning and work upfront, but once you’ve made that initial investment and built your system, it becomes much more passive! Depending on location, it’s unlikely that you will earn that same amount all year round. Due to having a high and low season, the income tends to be inconsistent. It’s important to be aware of these seasonal fluxes' so you can maximize your earnings during the high seasons.
There is no better time than now to jump into the vacation rental market, as it is proving to be a highly lucrative investment. Let Alexandra Interiors & Staging help you maximize your investments with our professional design team.