There’s no question that the short-term-rental industry is set for continued growth in the new year. But how fast will it grow? What factors will fuel that growth? How can investors, owners and property managers best position themselves for success in 2023? And what issues threaten potential industry growth?
We’ve pinpointed Property Technology, Mid-Term Rentals and Enhanced Guest Experience as the three biggest STR topics for 2023. Here are our insights, predictions and tips for these hotspots of opportunity.
- 4 Vacation-Rental Proptech Tools For 2023
- 4 Lucrative Mid-Term-Rental Segments For 2023
- 3 Ways To Enhance Short-Term-Rental Guest Experience And Score 5-Star Reviews In 2023
4 Proptech Tools For 2023
Property Management Software
PMS platforms have been around for a while. A they’ve become essential tech for professional STR operators. In addition to must-have capabilities including syncing rates and availability across OTAs, and managing reservations, be on the lookout for new 2023 features such as advanced website building and booking engines that support direct booking, and let owners avoid Airbnb fees, liabilities and limitations.
Guest Screening Tools
The best way to stop bad things from happening at your short-term-rental property is to prevent bad actors from booking in the first place. Guest screening tools help owners verify guests and prevent fraud by running background checks, pulling up previous guest reviews across booking channels, and identifying risky bookings. If you’re planning to grow your business in 2023, stringent guest screening is a must.
Smart Security Devices
As a professional STR host, protecting your property is paramount. It’s equally important to protect your guests’ privacy. While doorbell cameras provide some insight into what’s happening at their properties, they can feel invasive to guests. In 2023, more STR operators will turn to advanced smart devices, including privacy-safe noise and over-occupancy sensors, and bluetooth-enabled smartlocks. These devices can control noise complaints, parties, nuisances and guest access, from anywhere at any time, without compromising guest experience.
Guest Messaging Platforms
Being able to message guests easily, and set up automated messaging, helps boost guest experience and owner revenue. Smart hosts will invest in guest messaging technology in 2023, to streamline the booking process, provide check-in and check-out instructions, and offer mid-stay upgrades and add-ons (local excursions, dining reservations), along with special offers (one or two extra nights at 50% off). Hosts can also integrate their guest messaging platform with their noise-monitoring technology, to automatically notify guests when excessive noise is a problem. You can also use guest messaging to request a review and offer special pricing for rebooking, or booking at another one of your properties—bonus!
4 Lucrative Mid-Term-Rental Segments For 2023
Business Travelers
As business travel continues to rebound in 2023, those who have to travel for work are looking for more “accommodating” accommodations, often for upwards of 30 days. Hosts can take advantage of this market by using “corporate housing” and “business traveler” keywords and filters in their listings. They should also outfit their properties with traveler-friendly features including high-speed WiFi, in-unity laundry and a well-equipped kitchen.
Graduate Students
Mid-term rentals are becoming increasingly popular with both U.S.-based and international grad students doing internships or fellowships. Why? Because they’re a much better alternative to signing a long-term lease then having to deal with subletting once their gig is over. Mid-term renting is also more student-budget-friendly, and typically includes furniture, appliances and other amenities that students won’t find in a long-term rental.
Medical Professionals
Traveling doctors and nurses have become a strong mid-term market segment during the COVID pandemic. And they will continue to be in 2023, as these medical workers find better income, more freedom and better work-life balance in contract positions. There are numerous websites focused on marketing STRs to traveling medical professionals, and are a good option for owners just getting started in this lucrative and growing mid-term market.
Corporate Housing
The beauty of offering corporate housing is that it’s scalable, and, because transactions run through a corporation rather than an individual, they tend to run smoothly. But be mindful: Getting into corporate housing requires a significant investment of time, labor and money. You’ll need to do market research to confirm the viability of corporate housing in your area. You’ll need to have all your ducks in a row, including the proper insurance, when you begin outreach to potential corporate clients. And your property may need adjustments or upgrades in order to be suitable for the client’s housing needs. But once you’re contracted with a corporate client, you’ll have an ongoing flow of high-value bookings, with minimal marketing effort involved.
3 Ways To Enhance Short-Term-Rental Guest Experience And Score 5-Star Reviews In 2023
Get To Know Your Guests
For each booking, find out more about what your guests want, need and enjoy. And take the time to do so before they ever set foot on your property, so you’re prepared for them when they do. Questions you might ask include: “What temperature would you like the condo set at when you arrive?” “How many highchairs do you need for your stay?” “Do you prefer red or white wine [if planning to have a bottle waiting for them]?”
Focus On Details
Most STR guests, especially in tourist destinations and during holiday travel, are on vacation. So give them the “getaway” experience they crave by filling their stay with little luxuries and personal touches. Got an outdoor fire pit at your property? Leave them a basket of s’mores fixings and a stack of clean, cozy outdoor blankets. Do you have a beach property? Make sure your place has easy-to-carry beach umbrellas, backpack-style beach chairs, cooler bags and plenty of big, soft beach towels.
Provide Concierge-Level Service
Concierge-type services are not just for luxury vacation rentals anymore. If you’re aiming for 5-star reviews in 2023, you need to make guests feel cared for and catered to. And that means suggesting the best local nail salon, or a “secret” speakeasy with fabulous cocktails. It means booking your guests’ dinner reservations, kayak adventure or guided city tour, either before they arrive, or during their stay. Offering ongoing, dedicated communication and service during your guests’ stay is the best way to turn first-time visitors in return guests. And that’s the best way to ensure ongoing success in 2023.