The idea of taking vacations has grown on people such that the number of people taking vacations continues to rise steadily. Consequently, the number of vacation rental industries is on the rise as they seek to tap on the rising market needs. Data collected indicated double listings across online platforms between 2017 and 2018. However, with the growth of many urban and vacation industries, the competition has become stiff. As such, property managers that seek to stay competitive must not only be innovative but must minimize redundancies and repetitive tasks while still providing a local and customized experience to their customers. While at it, they must not lose the aspect of professionalism as it leads to more sales. While it may sound challenging, tackling the challenges requires a proper understanding of the industry trends. In coming up with prospects, keep in mind the following industry aspects as they will influence the industry’s direction.
The Distinction between Property Management and Real Estate Services
All cards are on the blurring of the line between traditional property management and the additional services offered in the real estate. In 2018, there was a rise in the number of projects that merged traditional property management practices with real estate development. All the projects sought to address the challenges in the sectors by combining their strengths. Some vacation rental industries came up with departments responsible for the development of real homes that allowed for flexible and shared living arrangements as compared to traditional methods of short-time stay. On the other hand, some real estate institutions partnered with vacation industries to turn their un-leased units into furnished hotel units. This year, prospects have it that new partnerships will emerge to create unique developments geared to enhancing quality and quantity of supply resulting in increased short-term rental yields.
The Emergence of New Generation Property Managers and Investors
2019 will bring forth a generation of new entrepreneurs who see the need to fill the existing demand for improved guests experience. The urban locations will experience the highest upsurge of entrepreneurs. They may have started as sole entrepreneurs, but with the adoption of technology and forward-thinking management solutions, they will tap into partnerships to reap from the revenues from short-term rentals. On the other hand, investors will venture into both long-term and short-term vacation rentals to reap benefits from the two sectors.
The Adoption and Investment in Technology to Increase Efficiency in Service Delivery
Success in the rental business results from a combination of several factors including the adoption of third-party solutions that make handling management tasks such as pricing listing easier. The industry has seen an inclination and an increase in online vacation bookings. As such, it becomes paramount that the institutions and property managers become tech-savvy to optimize their distribution and communication channels.
2019 will see advances in home technology that will increase security by using keyless locks, control the environment through automatic temperature controls, monitor noise levels, and carbon dioxide levels all which are geared to enhancing customers’ experience. Also, the adoption of pricing tools that vary the pricing structure depending on market trends, seasons, and day of the week will increase with the aim of quick price adjustment to meet the market trends.
The Emergency of Collaboration Groups Voicing for the Vacation Rentals Nationally
Governments do not much appreciate the positive effects the short-term rental industry has on the society. The fact that the industry creates more jobs and boosts tourism is enough to warrant recognition by governments. As such, 2019 will bring forth associations and partnerships with the aim of speaking with one voice for vacation rentals. More action groups will come up to seek support for the short-term rental industry.
Improved Quality in the Services Offered
Competition comes to favor the customers. Institutions offering the services attract customers by improving on the quality of services provided and offering a wide selection of packages. Expect the communication channels to develop leading to trust and low instances of confusion. The demand for short-term rentals will also go up leading to industry growth.
The Future of the Industry
The short-term rental industry is among the fast-moving sectors. This year might see the revolution of different aspects in the industry while the future might hold even more. Its dynamics keep adapting to the needs in the market. While at the moment it’s the need for technology to improve efficiency and enhance customers’ experience, a decade later, the industry might gravitate to something completely different. However, blink, and the opportunity passes.