712: Has the Short-Term Rental Goldmine Run Dry?
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 10 January 2023
⏱️ 58 minutes
🧾️ Download transcript
Summary
Short-term rentals can be categorized, at least at a surface level, as the “easiest” investments of 2021 and 2022. With low interest rates and a surge of post-pandemic tourism, new hosts were buying homes for cheap monthly payments, throwing some furniture in them, and making a six-figure return within a year of owning just one property. Naturally, this led more and more hosts to start building bigger vacation rental empires, buying as many properties as possible and inflating prices as a result.
But, the boom in BnBs caught on quickly, and more investors began tackling the same strategy. Before long, there were more short-term rentals than ever, but the same number of guests occupied them. Now, short-term rental hosts are facing lower occupancy as they struggle to compete over which properties will get which guests. So, is this the end of the short-term rental industry, or is the data showing something completely different? We brought on Jamie Lane, Vice President of Research at AirDNA, to give us a glimmer of hope.
Jamie knows short-term rental data better than anyone else. He knows which markets are growing, which are declining, which amenities get you the highest ROI, and why last-minute bookings aren’t a bad thing. He gives us a deep dive into what’s affecting the short-term rental market as a whole, whether it’s on a decline, and what hosts can do to beat out the competition when trying to fill their listings.
In This Episode We Cover:
The “BnBust” and why so many short-term rental hosts are facing low occupancy
2023 short-term rental predictions and the effect a recession could have on the industry
The best short-term rental markets and which tourist cities will remain strong
Short-term rental regulations and how they may be a good thing for existing hosts
Last-minute bookings and using dynamic pricing to make these stays more profitable
The top amenities guests want in their vacation rental in 2023
Superhost status and the massive boost in bookings it can lead to
And So Much More!
Links from the Show
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Transcript
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| 0:00.0 | This is the Bigger Pockets Podcast Show, 712! |
| 0:04.3 | Where we see more supply coming in is people that have existing homes, maybe a second home, |
| 0:11.3 | maybe their primary residence, they're not looking to use that home in the same way, maybe they're moving, |
| 0:18.8 | and they don't want to sell, they've got that 3% interest rate that I'm very attractive to keep. |
| 0:24.5 | So now they're looking to rent it out, find another use, and we've seen actually big uptick and |
| 0:31.6 | in recent months from people just looking to find other uses for their homes, and a lot of that |
| 0:38.4 | is coming into the short terminal sector. I hope I'm a David Green Proud. Today I am interviewing |
| 0:43.9 | J.B. Lane, the vice president of research for Air DNA, with my good friend and who I have dubbed |
| 0:50.3 | my Airbnb Investee, Tony Robinson. How you doing, man? Dude, I'm pumped, man. This is our first |
| 0:56.5 | official podcast episode together, it feels like way overdue, so, just to the producers for waiting |
| 1:02.5 | so long to get this together, man. I know, man, come on, come on, Eric, what are you doing? I think |
| 1:07.6 | honestly what I was really proud of is, we didn't, you know, consider we don't share the mic |
| 1:11.8 | all that often, we didn't really interrupt each other that much, and I think that's a win. |
| 1:16.7 | Dude, we played nice, it's like two kids in the sandbox, and they just get along from the |
| 1:20.3 | jump, man. But dude, that's like, that's like me and you're from the beginning, right? I feel like |
| 1:23.6 | the first time we met, which was actually for those of you, this person might be listening, |
| 1:28.4 | the first time we in Rob met in person, we had lunch at this place called the local goat |
| 1:32.6 | in Pigeon Forge, and I remember when I walked out, someone messaged me, I was like, oh my god, |
| 1:36.7 | I just saw you sit in with Rob Bill, but I was too nervous to go talk to you guys. If that person |
| 1:39.9 | is listening, next time you see us, just please say something, say hello. You know, it's really |
| 1:43.6 | crazy about that particular instance, is I was still working a job, I still had a nine to five |
| 1:48.4 | at that point, and I was sitting with you and your wife Sarah and y'all were like, why do you still |
... |
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