Short-term rentals are a unique type of industry and they have a specific clientele that is different from hotel guests or traditional renters. In short-term rentals, your targeted guest profile will be transient guests who typically stay for short periods of time and have a typical set of requirements for living accommodations. This short term rental tip stressing the importance of knowing that persona and their needs.
As an investor, it is crucial for you to understand the guest demographic before making your investment decision because some short-term rental properties are better suited to certain types of guests than others. For example, short-term rentals on busy city streets might not be right for families with young children whereas vacation homes in beach locations would be a better short-term rental option for visitors with children.
When I invested in houses I specifically looked for 3 bedroom 2 bath homes because I knew that it would appeal to families with kids and bigger groups of people. I looked for or added things like a fenced-in backyard for privacy and also attracted those with pets of which many hosts do not cater to. These homes were also not centered in the middle of downtown or other busy areas but are close enough to drive to, 15 minutes or less.
Not only those having a target guest help you acquire the right property and location but it also helps you understand the different amenities they’ll need inside the property as well. If you cater to families you may make sure to have dishes suited for kids, a crib for a baby to sleep in, safely features to protect wall sockets and so on.
To properly analyze short-term rentals, you need to know your clientele because it could make or break an investment opportunity depending on who is staying in the property. If you don’t understand what types of people are typically renting out short-term properties then you might miss some key factors that would influence your decision-making process and ultimately leave money on the table.
