Life, traveling, and accomodation as we know it underwent a drastic change during the pandemic. The lifting of travel restrictions has paved way for a new investment option that is gaining ground fast. These are short-term rental investment opportunities.
Experienced and novice investors are interested to know how to find the right investment properties. They want to identify the best location for their rental property investment. People want to jump into short-term vacation properties because of the increased demand for alternative accommodations.
The Global Vacation Rental Report 2022 shows that nearly 40% of property managers rely on analytics services and market business intelligence. The short-term rental data provides vital information to help you make smart investment decisions. These sources offer competitive insights into the availability of short-term rental investments, pricing, expected income, and much more.
A wise investor understands the importance of short-term rental data. With that said, let’s find out more to understand the sources of short-term rentals, why it is important and where you can access it.
Let’s get started.
What is Short-Term Rental Data?
Short-term rental and vacation rental properties are the same. They refer to hotel alternatives or accommodations you book for several days or weeks. Such properties are profitable and popular in tourist-favored destinations or places frequented by people.
Short-term rentals are affordable alternatives to hotels and resorts. Vacationers or travelers pay for these properties based on their travel itinerary, duration of stay, and requirements and the advantage is that it are priced per night.
Short-term rental data is the statistics and numbers that provide specific insights into the short-term rental market. It includes information about profitable rental property investments in a particular area.
Investors use the techvestor data to understand where to buy rental property, how much real estate passive income they can generate, occupancy rate, average daily rate, and much more.
The following are common short-term rental property data types:
- Tourism Data: Vacation properties gained popularity during the pandemic as people sought safe places to quarantine, self-isolate, or gather their families in secluded places. These guests participate in both indoor and outdoor recreation in the community. Tourism data provide guests’ average spending and guest profiles, i.e., the number of nights they spend, occupancy rate, tax revenue, estimated economic impact, etc.
- Housing Data: This is comprehensive data on housing in various towns, cities, and metropolitan areas. The data shows total housing units, vacancy rates, and demographic information.
- Nuisance Data: It provides information about nuisance incidents due to short-term rentals compared to long-term rentals. Some of these violations include noise, parking violations, parties, trash, etc.
Why You Need Short-Term Rental Data
Potential investors use short-term rental data to determine whether their rental property investment will succeed or not. After all, you’re getting into the vacation rental business to make money. Other reasons why you need rental property data are:
- Set the Right prices
Property managers rely on short-term rental data when setting property prices in various locations. Property owners want to maximize their rental income as much as possible without overpricing.
Therefore, rental data is crucial because it helps you understand the current market trends, monitor your competitors, set reasonable prices to increase your occupancy rates, and also make proactive adjustments. Indeed, you won’t be left behind because of overpricing or underpricing your property.
- Optimize Your Occupancy
Short-term rental analytics can help you boost your occupancy rate because the vacation rental sector is seasonal. The performance of these hotel alternatives depend on their location. Properties located in tourist attractions or places where local events are held generate higher revenues during those seasons.
- Develop Effective Strategies
The data can help an investor develop an effective short-term rental strategy and make better decisions regarding pricing, marketing, etc. The short-term rental data helps you track specific metrics and measure them against actual output. This allows you to identify the gaps, rethink the strategy or develop new ones to improve your performance and increase revenue.
Where Can You Get Short-Term Data?
Investors need short-term data and analytics to choose smart real estate investments. Local governments also use these statistics to craft short-term rental regulations, and provide insights into high-yield areas that real estate investors use to make decisions.
There are many free platforms that offer hotel alternative accommodation data to guide individuals who want to get into the rental property business, but are not sure which one to pick.
The following are reliable sources of short-term rental data:
- Airbnb Data
The home-sharing marketplace generates tons of data that short-term rental property analysts use to generate insights. However, Airbnb prohibits the use of bots or other automated means to collect content or data on its platform.
But, you can negotiate a property agreement with the company to use its data. Alternatively, you can purchase ready-to-use structured data and other content from service providers
The platform covers nearly every country. Real estate investors, first-time owners, and enterprises use the data to select high-potential short-term properties in major cities across the world.
Airbtics, the industry-leading short-term rental property data provider lists over 6 million properties from more than 192 countries. Both vacation rental owners and real estate investors trust its data because it collects various content from major rental platforms, including HomeAway, VRBO, and Booking.com.
The platform provides vacation rental data across 80,000 cities globally. AirDNA uses the average daily rate, annual revenue, and occupancy rate. Real estate investors and tourist boards can access its analytics-primed custom data to identify successful rental property investments.
- Vrbo Data
Vrbo platform dominates the vacation rental market worldwide because nearly 59% of short-term rental property listings are here. You can also find meaningful data from competitors like Expedia Group and Booking.com. Although these vacation rental home leaders don’t permit data scraping, you can contact them and negotiate private terms.
- Vacation Rental Software
There are many tools and software that vacation rental investors use to locate profitable properties across the world. This vacation software captures market trends, accommodation rates, and competitor analysis.
The short-term rental property ecosystem is dynamic, thus the need for data when choosing where to invest, how much, and how to price your rental. Indeed, the short-term rental data empowers property owners and investors to create a data-driven STR strategy, identify lucrative rental property investments, boost occupancy rates, and much more.
You can find vacation property data from reliable providers like Airbnb, Vrbo, AllTheRooms, AirDNA, Airbtics, or other local websites. The information will help you build a stable short-term property business and generate outsized passive real estate income.