Many people turned to Airbnb and Vrbo to make extra money during the pandemic. They also turned to Airbnb and Vrbo as travelers, looking for an opportunity to get away from home without having to be near a host of other people and travelers.
But post-pandemic, an oversaturation of properties, competitors who can offer lower prices, tighter government rules and restrictions, plus Airbnb and Vrbo experiences that have given guests second thoughts about booking again through the platforms have led to a slowdown of bookings, at least in some areas and for some hosts.
With more than one million listings in the U.S. alone, supply and demand is not on the side of current hosts and potential ones. So how can you make sure you and your properties survive and thrive, even during an Airbnbbust?
Here are 3 considerations for the long-term success of any short-term rental:
- Location, location, location. We have two properties in areas that have seen a huge influx of new Airbnb and Vrbo properties over the last two years. In Luray, Virginia, where we have a cabin, it’s our waterfront location that narrows our home down to one of about 100 choices in a location with more than 1,000 properties. Find a property that is unique in some similar way. Too, know your local government’s rules for Airbnbs. For our property in Winchester, Virginia, many current hosts may have to give up their short-term rental because the home is either not their primary residence or is not within the central business district.
- Price. Many hosts, especially in pricier locations such as New York City and San Diego and other destination locations, were able to charge exorbitant nightly rates, especially at the start of the pandemic. But increased competition and travelers rethinking trips due to inflation and other concerns may cause hosts to need to drop their rates, or offer discount promotions, at least temporarily. Before purchasing any property, know how much you need to make the mortgage or a profit, and make sure it’s sustainable, even during turbulent times.
- Uniqueness. You may not have a waterfront location, an amazing view, or walkability to a vibrant downtown, but those aren’t the only things some Airbnb and Vrbo travelers are seeing. When considering a property for a short-term rental, unique can help you stand out. Airbnb recently introduced its categories which include farms, chef’s kitchens, A-frames, and off-the-grid. Find and choose a property that can help your short-term rental stand out in some unique way.
We’ll cover three more ways to survive and thrive as a short-term rental host in our next post. Until then, check out 3 Things New Airbnb or Vrbo Hosts Should Never Do.
