The short term rental market is constantly evolving, requiring property managers to stay updated on the latest trends.
Fortunately, there is a smart property technology for many of today’s challenges. We’ve compiled a list of the top three trends impacting the short term rental sector right now, and the central role technology plays in addressing them.
3 trends impacting property managers in the short term rental industry
1. Increasing regulatory pressures
Regulation has a large presence in the sector, although each state has been affected differently. New licenses, permits and restrictions have been brought in to define and regulate what qualifies as a short term rental.
The need for regulation has been driven by growth in the number of vacation rentals available. Surprisingly though, 2023 has seen demand outpace supply, resulting in rising occupancy levels and longer stays. In turn, revenues have increased, bringing the interest of local governments.
With short term rental properties having more occupied days than vacant, property managers must address issues promptly, and proactively where possible. One of the top concerns among communities is noise from guests.
Proptech offers smart noise monitors as a solution. These devices send alerts when a particular decibel threshold is exceeded, and also track the duration of the noise. Property managers can intervene early, asking guests to reduce the noise before it escalates to complaints or fines. Importantly, these smart noise monitors don’t track audio, only monitoring for noise levels, alleviating any privacy concerns.
2. The rise and impact of intelligent machine learning
Many tech providers in the short term rental space are using machine learning, with technology essentially teaching itself how to improve. The technology eliminates human error and raises efficiency by carrying out tasks on behalf of property managers — for example, monitoring HVAC and smart water management systems. Problems are quickly addressed and the property managers are notified, allowing them to focus on other tasks, only visiting the property when needed.
According to Skift’s latest short term rental report, machine learning increases conversion rates of properties and can prevent fake listings from appearing on OTAs.
Inside the property, smart thermostats use machine learning to increase sustainability. Real-time in-unit temperature analysis identifies anomalies and informs property managers, helping reduce energy waste. Smart thermostats optimize performance and avoid costly repairs with HVAC reports and diagnostic alerts.
3. Growing pressure on revenues
Revenues may be under pressure but the right technology can help protect them. While economic headwinds can cause delay in technology adoption, it’s important to recognize that many proptech solutions pay for themselves over a relatively short time, including smart thermostats. Data from Alarm.com has estimated that smart thermostats can save 9-16% on heating bills and 15-23% on cooling bills.
Automated solutions such as smart thermostats, HVAC, water sensors, and access control systems promote centralization, a growing trend among property management companies. This reduces operational and transport costs, allowing valuable time to be spent on other tasks.
- Short term rental property managers need to stay up to date with how technology can keep them on the right side of regulations.
- Intelligent machine learning will take care of many tasks linked to operational efficiency.
- Modern smart technology for short term rentals unlocks centralization, which is one of the key drivers of operational efficiencies.
Want to capitalize on the growing trend of extended stays? Read our recent blog on how to attract extended stay seekers to your rental.