Short-term rentals are becoming increasingly popular these days, but why? What draws people to this asset class? Is this portfolio something you would be interested in investing in as well?
Getting the best return on your investment requires knowing how to do things right. It is crucial to understand pricing, market demand, and the best location for these properties. Your short-term rental properties will benefit from considering these factors.
Alex Haler is an STR expert with years of experience in STR management, investing & real estate. Currently, he is the head of real estate sales at AirDNA, a data and analytics company in the STR space.
In this episode, Alex shares how from renting out his couch to strangers at the start, he scaled his short-term rentals to what it is today. He shares a pricing structure he uses and software that streamlines his process of finding the best locations and where demand is strong. Besides, his prediction of where the industry is going years from now is an insightful one to look into.
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What you will learn from this episode for 18 minutes:
01:05 - How he found himself in the Airbnb space
01:45 - What his journey was like putting up AirDNA
03:58 - The macro and micro trends to consider when analyzing market trends where short-term rentals are concerned
05:51 - How he uses software to track short-term rental markets' demand and viable niches to invest in
07:34 - How good dynamic pricing and revenue management strategy help in short-term rental's profitability
10:00 - Estimate of professional hosts using dynamic pricing
10:49 - Number of properties operated by individual hosts versus property management
11:49 - Where does he see the short-term rental industry going when it comes to its operations and the demand for them?
13:29 - Supply is increasing, but surprisingly demand is also up
"There are a lot of micro considerations when you're looking to do a short-term rental investment, as well as the macro stuff, economy, interest rates, real estate prices, pandemics, those types of things."
"We're analyzing things like rental demand, rental growth, seasonality, and investability. Or we will take a home's short-term rental potential, divided over the median home price in that area to give you an investability score of what markets might be interesting for it.
"Revenue Management software can help you basically make that determination for you. It will look at future pacing or booking information and help you predict [demand]."
"The supply is indeed increasing a lot, but demand is actually going stronger than ever. And the CEO of Airbnb just recently gave an interview where he said they're seeing huge increases in week-long stays, month-long stays, the digital nomad trend."
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