Selling a Vacation Rental Property? Read This First
For the past several years, the vacation rental market has skyrocketed in popularity — not just for travelers, but also for the owners and investors who own the properties. As of September 2023, short-term rental listings in the U.S. reached 1.6 million, a record high according to AirDNA data. Last year, oversaturation in the vacation rental market led to lower occupancy rates and a revenue per available room decline of 4.9%, also the first on record.
Demand is expected to rebound in 2024 as the economy strengthens and domestic travel becomes less expensive, however, some hosts impacted by the downturn in bookings might be considering the option of selling their vacation rental property.
With the help of real estate experts and the latest statistics, we’re taking a closer look at the current state of the short-term rental market and its impact on you, a potential seller.
What qualifies as a vacation rental?
A vacation rental property, also known as a short-term rental (STR), is a home that is rented out to guests for — you guessed it — short periods of time. Definitions differ, but STR stays typically do not exceed 30 consecutive nights.
There are two main types of short-term rental properties:
