A Guide to the Short-Term Rental Market for Realtors
How to Leverage the STR Industry for Realtors and Real Estate Agents
Breaking into new markets is always something that is top of the mind for realtors and real estate agents, but no other market is more ripe for the picking than the short-term rental industry in destination markets all across the country. Although the short-term rental industry is no longer growing at the frenzied pace we saw during the 2021-2022 years, there is still plenty of room for homeowners buying and selling their properties in today’s era as well.
For realtors and real estate agents who have been thinking about breaking into the vacation rental market, we’ve compiled just the guide for you.
First, we’ll go over a quick definition of the STR market, then we’ll dive into why you should be paying attention to it, before finally moving onto our top tips for realtors trying to break into the STR market.
What is the Short-Term Rental Market?
If you’re unfamiliar with vacation rentals and the short-term rental market itself, it can be a difficult task to try to break into it. Before diving into the specifics of the STR market, let’s first define what we mean by it.
Short-term rentals are properties, whether that’s houses, condos, or apartments, that are rented out on a short-term basis, typically under 30 days at a time. These differ from long-term rentals in that guests are typically only staying for a few nights, much like in a hotel, rather than renting the place out for a longer period of time. You might be familiar with short-term rentals from sites like Airbnb and Vrbo, and that is indeed where many short-term rental owners list their homes–these are the bread and butter of the vacation rental industry.
Why Should Realtors Pay Attention to STRs?
It might not seem obvious at first glance–why should you as a realtor or real estate agent take an interest in the short-term rental industry? Well, the answer is simple: opportunity. Yes, the rapid growth of the industry seen in 2021 and 2022 is no longer here, but the short-term rental industry is still a revenue-heavy market with lots of potential for both buyers and sellers.
At any given time, there are short-term rental owners selling their homes and packing up shop, while new owners are stepping into the industry for the very first time. For realtors and real estate agents, this means that tapping into this new market can not only help to expand your client base, but that new revenue streams will become available to you as well. In addition, the rise of remote work and “workations” means that this type of travel has become increasingly popular, and demand for short-term rentals in destination markets like Park City has stayed strong throughout the changes in the industry.
Top Tips for Realtors Breaking into the STR Market
Now that we’ve covered the basics of the short-term rental industry and why it’s ripe for realtors and real estate agents, let’s dive into some actionable tips for breaking into the vacation rental market.
#1: Focus on Destination Markets
Short-term rentals thrive in travel destinations, and there is one reason why: because location is key. Rather than just focusing on short-term rentals in your local area, expanding your reach is a wise idea for breaking into these markets.
For instance, if you’re located in Denver and are looking to expand into the vacation rental industry, places like Breckenridge and Aspen may be a good idea to tap into. Similarly, if your main selling market is in Salt Lake City, Park City and its surrounding areas would be a great place to put your feelers out. By focusing on these destinations, you will be in a better position to understand the ins and outs of the short-term rental industry and more importantly, you will be able to better connect with buyers and sellers in this lucrative market.
#2: Work with Local Property Management Companies for Referrals
When you’re trying to break into a new market, it helps to have connections with those who can offer you referrals, and one easy way to do that with the vacation rental market is to reach out to short-term rental property management companies. Just a quick email or phone call is all that’s needed to do this, and it will only take a few minutes out of your day once you’ve come up with an email template or phone script.
Once you establish a relationship with these companies, you will be able to gain access to an untapped market of referrals for both buyers and sellers. The same also works in reverse–if you’re working with a client who is purchasing a property to turn into a vacation rental, having connections with property managers can aid you in referring clients to a service they’ll be happy with. Finally, working with property managers can provide you with valuable insights into market trends, rental rates, and property maintenance, allowing you to better serve your clients by educating them on the latest short-term rental trends.
#3: Leverage Your Network to Connect to STR Owners
There’s nothing more important than networking in the real estate industry, and the same can be said for the short-term rental market. That’s why, for our final tip for real estate professionals, we recommend reaching out to your network, whether that’s clients, your farm area, colleagues, and acquaintances, and letting them know that you’re expanding your reach into the short-term rental market. You truly never know who is considering buying or selling a vacation rental, and there’s no better way to generate leads than by personal referrals.
Looking for a Property Management Company to Connect With? Check Out LocalVR
While breaking into the short-term rental market may require some initial effort and expertise, the potential rewards are well worth it for realtors and real estate agents. When you work hard to understand the unique dynamics of the STR industry, focus on destination markets, partner with local property management companies, and leverage your existing network, you will be able to successfully tap into this lucrative market and grow your business.
Searching for a short-term rental property manager to connect with to grow your real estate business? Look no further than LocalVR, a full-service property management company serving destination markets like Breckenridge, Park City, Telluride, and Lake Tahoe. Contact us today to learn more about our Realtor Referral Program.
