2022 brought a lot of changes in the rental property industry and property owners have a chance to use these changes to their advantage in 2023.
By Nino Chicoga
As a landlord, you should be well aware of the pandemic’s changes to the rental real estate industry in 2020. The industry has only grown ever since and the investors have been making a big profit due to rising rent prices.
Although the daily rental properties have not been as successful as they were in the past lately, more and more people are looking to rent real estate for long periods. Therefore, many of the property owners switched their focus from renting daily to renting monthly.
Each year tends to affect the next in both negative and positive ways. 2022 has set the grounds to make your investment successful for the next year. We can explain some of the positive effects that 2022 has on your assets and rentals for 2023.
The Short-Term Rental Industry is Making a Comeback
As mentioned, in recent years because of the great fear that the pandemic brought us, many people were too afraid to book rentals for a night or two. Daily rentals turned out to be a failure for many investors in 2020 and 2021. However, in 2022 we saw a bit of change as the Covid 19 panic slowly died down. Although we are far from completely defeating the virus, people have found hope and we can see some positive results in the medicine.
Traveling just came back in style and people are eager to visit the places they couldn’t for years due to lockdown. It’s the property investors’ time to take the spotlight and make a big profit.
Since traveling is not as big of an issue in 2022 as it was in 2021, we can see more and more people visiting a variety of places. As expected, by 2023 short-term rental properties will have renewed their spot on the market. If you own a rental property that you rent out daily, 2023 might be highly beneficial for you.
In 2022, 80 percent of travelers made plans to visit different regions, and 86% of the travelers said they would stay in rental properties. Such surveys bring hope to investors for next year. We suggest you get your property management company to prepare your commercial real estate for daily and weekly visits.
How to Handle the Positive Change
Furnishing properties and changing policies to make them suitable short-term rentals is going to be costly.
If you can’t decide to switch your rental from a long-term one to a short-term rental you are going to need to consider these factors that impact the renters’ choices.
- Location: Is your rental property located in the part of the region that gives the guests the liberty of visiting multiple attractions in a day?
- Tenants: Do you have tenants that plan to move out in a short term or do you have the grounds to evict them?
- Government regulations: Many states have changed certain laws and regulations in the past few years. Are you up to date with the property law in your area?
- Vacancy: How are the vacancy and the profit going to change by switching to short-term rental?
- Policies: What are your policies for long-term rental and how are they going to change?
You must also remember that by changing the type of your rental property, you are going to have to publish new advertisements on different platforms. You will need to post your listings on booking websites and change the style of how you present your property online.
By switching to short-term rentals, you will need to consider giving additional services to the guests. When the visitors stay at properties for a short period of time they expect clean towels and help with navigating through the area. If your property is located at a distance from your residence of living you should start thinking about hiring a property manager.
Moreover, you will need to attend to the needs of the guests and oversee their actions daily. Since you will have to host new people every few days, it will be difficult to trust them completely. Therefore, you will need to spend a lot of your time checking up on the visitors.
In conclusion, 2022 has promised us the comeback of the short-term rental industry. As a property investor, you can start receiving guests to your commercial real estate daily again. If it’s your first time renting out properties short-term, you can check some of the pointers we gave you so you can easily navigate this new style of business.
Usually, property owners make much more profit by renting out properties daily, especially if they are located in a tourist zone. Therefore, if you decide to use the advantages that 2022 has given us for 2023, you will not regret switching back to short-term rentals.
About the author:
Nino Chicoga is a content/blog writer at Goodjuju. Before joining the team she had various jobs. She worked as a content writer, a business manager, an HR intern and a logistics assistant. Nino loves to do research on different topics. She enjoys learning about philosophy, psychology, and reading classic literature.