Institutional investors have (yet) to discover STR as an emerging asset class

Richard FertigAug 14, 20215m 7s2.5K viewsScore 85
Growth & Marketing
intermediate
emerging asset class
Airbnb 2.0
institutional investors
portfolio building
cap rate investing
M

Summary

AI-generated

The short-term rental market is an emerging asset class with significant upside, moving beyond basic hosting to a more professional, business-oriented approach. Understanding the transition to 'Airbnb 2.0' and preparing for 'Airbnb 3.0' with institutional investors is key to maximizing returns.

Key insights

  • Currently, single-family homes are often bought based on comparable sales (comps), but institutional real estate trades on cap rates based on net operating income. This presents a mispricing opportunity.

Mistakes to avoid

  • Assuming that past strategies from 'Airbnb 1.0' (like simply listing a property without advanced hosting skills) will continue to yield high returns in the current market.

Tools & resources

  • Richard's email newsletterservice

    Richard Fertig's email newsletter offers insights and updates on the short-term rental industry.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial