How to Succeed in the Short Term Rental Business
The short-term rental industry has seen tremendous growth in recent years, offering significant earning opportunities for those willing to invest time and energy in this form of business. Thanks to platforms such as Airbnb, Booking.com and Vrbo, it has become easier than ever to rent properties short-term, whether for vacations or business trips.
But how can you succeed in the short-term rental business? In this article, we will explore the fundamental steps, the best strategies and the opportunities that this sector offers 😎
How the Short Term Rental Business Works
The short-term rental business consists of making a property (or part of it) available for limited periods, usually from one to thirty days. This model is particularly popular among travelers looking for more intimate and affordable alternatives to traditional hotels.
The advantages for owners are many:
- Higher profits than traditional rentals: Short-term rentals can generate significantly higher income;
- Flexibility: You can decide when to make your property available;
- Diversification of income: Ideal for those who want to supplement their income.
The Short Term Rental Market: Data and Trends
The European market
Second Statesman, the short-term rental sector in Europe reached a value of over 20 billion euros in 2022 and is expected to grow by 9% annually until 2030. Countries such as Italy, Spain and France are among the main markets, thanks to the strong tourist attraction and the demand for unique experiences.
Thailand
In recent years, Thailand has seen significant growth in the short-term rental sector, mainly driven by the ever-increasing tourism. Cities such as Bangkok, Chiang Mai, and the tourist islands have seen an increase in properties available on platforms such as Airbnb and Booking.com. For example, in Bangkok, the average rent for a one-bedroom apartment ranges between THB 16,335.34 (approximately USD 486-594) per month, while in Chiang Mai, rents are cheaper, ranging between THB 8,000-12,000 (approximately USD 278-340) per month.
Croatia
Croatia has become an increasingly popular tourist destination, especially during the summer season. Coastal cities such as Dubrovnik, Split and Zadar have seen significant growth in the number of accommodations offered for short-term rental. According to data from the Croatian National Tourist Board, the number of overnight stays in private accommodation increased by 5% in 2024 compared to the previous year, indicating a positive trend in the short-term rental sector.
Albania
In recent years, Albania has begun to emerge as an emerging tourist destination in the Balkans. Cities such as Tirana, Vlora and Saranda are attracting increasing numbers of tourists, leading to an increase in demand for short-term rentals. According to the Albanian Institute of Statistics (INSTAT), there was a 7% increase in the number of foreign tourists in 2024 compared to 2023, suggesting potential growth in the short-term rental market.
Indonesia
Indonesia, with popular tourist destinations such as Bali, Jakarta, and Lombok, has seen significant growth in the short-term rental sector. Bali, in particular, has become a hub for digital nomads and tourists, with an increase in properties available for short-term rentals. According to a report by Statista, the number of listings available on Airbnb in Indonesia increased by 12% in 2024 compared to the previous year, indicating strong growth in the sector.
In summary, the short-term rental market in these countries is showing a positive growth trend, fueled by increasing tourism and the growing popularity of short-term rental platforms.
“Why did you share data with me only from these countries?”
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How to Get Started with Short Term Rental Business
Know that there are different ways to enter the world of short-term rentals… the canonical points to observe if you want to venture alone into this sector are:
Choosing the Right Property
Property selection is crucial to success. Consider these factors:
- Position: Tourist areas or areas close to urban centers tend to have higher demand.
- Dimensions: The smaller apartments are ideal for couples or solo travellers, while the larger houses can accommodate families or groups.
- Property conditions: A well-furnished and maintained property will attract more guests and positive reviews.
Registration on the Platforms
The most common and widespread formula is to sign up to platforms such as Airbnb, Booking.com or Vrbo. These sites offer global visibility and integrated tools for managing reservations. But make sure you create an attractive profile with:
- High quality photos.
- Detailed and engaging descriptions.
- Competitive prices, based on market research.
Management and Hospitality
Guest experience is everything in the short term rental business 😊 To ensure positive reviews and a high occupancy rate:
- Offer extra services such as free Wi-Fi, equipped kitchen and local guides.
- Keep a communication quick and professional with the guests.
- Make sure that the property always be clean and in perfect condition.
Optimize Prices
Use analysis tools like PriceLabs or Beyond Pricing to adapt prices based on seasonality, demand and local events. A strategy of dynamic pricing can maximize your profits 💪
Promote Your Property
Don't just rely on platforms, promote your property on social media, create a website dedicated and collaborate with local agencies to attract more guests.
Challenges and Solutions
Like any business, short-term rentals also present some challenges:
- Local regulations: Many municipalities are introducing regulations to control the number of short-term rentals. So be well informed about the laws in force;
- Time Management: If you have multiple properties, consider using property management software such as Hostaway or Guesty to simplify operations;
- Negative reviews: Address them with professionalism, the goal is to draw what is good to make improvements, solving any problems reported by guests.
- Capital to be employed: To buy a property you certainly need resources. If I don't have the necessary amount I can always think about taking out a mortgage or using a much cheaper formula like subletting. However, there is another way that no one talks about... Real Estate Tokenization. This formula gives you the possibility to invest in this sector even starting from a capital of 1500 euros. (if you wish to know more CLICK HERE and view the presentation of our project)
Why Invest in Short Term Rentals
In addition to the potential profits, the short-term rental business offers unique advantages:
- Work flexibility: You can manage your business remotely.
- Diversification Opportunities: Short-term rentals can be a great addition to other real estate investments.
- International Expansion: With the right strategy, you can expand into more markets and grow your portfolio.
Conclusion
The short-term rental business represents a tremendous opportunity for those looking to enter the hospitality industry and create a significant income. With the industry continuing to grow and the demand for personalized experiences increasing, now is the perfect time to get started 😊
However, success always requires commitment, attention to detail, and a well-planned strategy. If you are willing to invest time and energy, short-term rentals can become a profitable and satisfying business.
If you are looking for something revolutionary instead that combines the brick business with the technological implementations of the last decade then you just have to watch the presentation of our project CLICKING HERE. You will discover how to start scaling this sector even starting from modest figures with a simple, transparent and super sustainable system.
See you soon
David Bottero
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