The Shift Underway in Summer 2022
Leaving the summer, we heard that the national average for Short Term Rentals was down 8% in revenue. While we haven’t seen that trend yet, all signs show some decline. August was our first month of the year, where we didn’t outperform last year at Renters Club.
We’ve also noticed that booking windows are extremely short. 18% of our overall bookings are secured 1-7 days out, which is unheard of in the summer. It makes things uneasy to see few bookings on the calendar and feel confident that they will come, but that’s where we are in the 2022 market.
Causes of the Market Shift
With an explosion in supply, many destination markets saw an increase in available vacation homes of about 50%, and the Austin area is in line with that growth rate with nearly a 40% increase since last year. Available data seems to indicate that demand for vacation rentals has only leveled off (rather than decreased), but the difference is that guests now have many more options to choose from in Austin.
This makes standing out from the crowd all the more critical. As a Renters Club client, you can trust that we will market your property to the best of our abilities and show off its best features. But you can help! Homeowners can position themselves to compete in this new environment by upgrading their properties with new features and amenities that guests will love. Your account manager and our in-house design team are happy to put together some suggestions for you if you would like.
Our Response
It is in volatile markets like these that a professional property manager shines! Although reservations were comparatively easy to come by for the past two years, that seems to be fading. However, we are instituting some measures to ensure we’re making the most of your investment.
Marketing Initiatives
To continue to outperform in this new market environment, we have doubled down on our marketing efforts. Some of our marketing initiatives include:
– A brand new website with Search Engine Optimization has us climbing the ranks daily.
– Length-of-Stay pricing
– Monthly email newsletters to all past guests
– New booking avenues are coming on board to ensure we’re EVERYWHERE.
– New automated software that texts guests with suggestions to add nights in those “gap days,” middle-of-the-week nights, has been highly successful.
Revenue Management
We are also staying on top of pricing management. We continuously work non-stop on pricing strategy using dynamic pricing software and our eyes on occupancy. The revenue management strategy we employ is the one that maximizes annual revenue. However, it may require patience in the short term.
Conclusion
Dedication to guest satisfaction and premier management of your home are our priorities. A managed vacation rental in Austin, Texas, and surrounding areas is a significant investment. We’re in it for the long haul to ensure your short-term rental is a great success!