Short-Term Rentals Have a Murky Outlook, But They’re Still the Biggest Opportunity For Cash Flow When Done Right
Summary
The short-term rental market is cooling off as many investors are shifting to long-term rentals, creating an opportunity for disciplined hosts. To succeed, hosts need to treat their STRs like a business, focusing on unique properties, reinvesting in their properties, and building a team.
Key Insights
- •According to the BiggerPockets Pulse survey, over half the investors surveyed believe long-term rentals are the best strategy heading into 2026, leading to a decline in STR sentiment.
- •Generic suburban rentals are struggling, while unique properties with features like pools or lakefront access, or unique couples' cabins are thriving.
- •Cash flow is about $2,000/month for self-managed generic houses. Unique builds with a team can be successful with high occupancy and premium rates. Without a team, profits vanish.
Action Items
- ✓Consider acquiring larger homes with a unique feature or unique couples’ cabins with private amenities.Effort: highImpact: high
- ✓Re-evaluate your STR listings, and consider updating photos, your pricing strategy and reinvesting in your property and building systems.Effort: mediumImpact: medium
- ✓If you don't already have one, consider building a team around your STR properties. Some team member ideas are virtual assistants, cleaners, and a maintenance crew.Effort: mediumImpact: medium
Tools & Resources
- →BiggerPockets Pulse survey: The article references the BiggerPockets Pulse survey.
Common Mistakes
- ⚠Failing to treat STRs like a business by neglecting property updates, failing to build systems, and not reinvesting in your properties will lead to poor occupancy.
More from Getting Started
This article from GreekReporter.com reports that Greece is climbing the European short-term rental rankings. While specific details on the rise are not provided in this short article, this suggests a growing opportunity for hosts. It implies increased demand in the Greek market, which presents a dynamic opportunity for STR investors.
Ennismore plans to expand its hotel presence in India, with its first hotel under the Morgans Originals brand, Roswyn, already soft-opened in Mumbai. Following the Mumbai debut, the company plans to open a Hoxton hotel in Bengaluru and is actively exploring further expansion opportunities, recognizing the market's readiness for a luxury lifestyle product.
The short-term rental market's growth is slowing, according to eKathimerini.com. This shift may affect occupancy rates and revenue for hosts. Understanding market trends is crucial for adapting pricing and marketing strategies, ensuring continued profitability.
Curated by Learn STR by GoStudioM