Things First Time Buyers Don't Understand About The Short-Term Real Estate Market
Sep 4, 2025
As a real estate professional, I have come across many first-time buyers who are interested in investing in short-term housing. While the short-term rental market may seem like a lucrative opportunity, there are many things that first-time buyers don’t understand about the industry. In this article, I will discuss some of these key elements and provide insight for those looking to invest in short-term housing.
All Properties Are Not Viable for Short Term Rentals
One of the biggest misconceptions that first-time buyers have about the short-term rental market is that any property can be rented out on a short-term basis. However, this is not the case. There are specific types of properties that are better suited for short-term rentals, such as furnished housing. These properties are already equipped with the necessary amenities that guests require, which makes them much more attractive to those looking for a short-term stay.
When investing in short-term housing, it is important to identify properties that are well-suited for this type of market. This means looking for properties that are centrally located, have easy access to transportation, and are in areas with high demand for short-term rentals. This will help to ensure that the property is always occupied and generating income.
Picking the Right Area to Purchase Requires Effort and Research
Another common mistake that first-time buyers make is failing to do enough research on the area they are considering investing in. It is important to understand the local market and the demand for short-term housing in that area. This can be done by researching the local rental market and speaking with other real estate professionals in the area.
In addition to research, it is also important to consider the diversity of the area. A diverse area with a mix of business travelers, tourists, and locals can help to ensure a steady stream of guests throughout the year. This means that the property will be occupied more frequently, which will result in higher profits.
Need to Be Creative Finding Guests
One of the biggest challenges in the short-term rental market is finding guests. While there are many online platforms that can be used to advertise short-term rentals, these platforms are often saturated with other properties. This means that it can be difficult to stand out from the competition.
To be successful in the short-term rental market, it is important to be creative when finding guests. This can be done by reaching out to local businesses and offering corporate housing options, partnering with travel agencies, or even offering short-term rentals to friends and family. By thinking outside the box, it is possible to find new and unique ways to attract guests and generate income.
Recurring and On Call Maintenance is Key
Another aspect of the short-term rental market that first-time buyers may not understand is the importance of recurring and on-call maintenance. Short-term rentals require frequent cleaning and upkeep, which can be costly and time-consuming. However, failing to properly maintain the property can result in negative reviews and a decrease in occupancy rates.
To ensure that the property is always in top-notch condition, it is important to invest in recurring maintenance services. This includes regular cleaning, landscaping, and general upkeep. In addition, it is important to have a reliable on-call maintenance team that can address any issues that may arise during a guest’s stay.
Understanding Guest Needs Helps to Maintain Occupancy
To maintain high occupancy rates, it is important to understand the needs of guests. This means providing amenities that guests expect, such as high-speed internet, cable TV, and a fully equipped kitchen. It also means understanding the needs of different types of guests, such as families, business travelers, and tourists.
By understanding the needs of guests, it is possible to create a more welcoming and comfortable environment. This can help to increase positive reviews and attract new guests, resulting in higher occupancy rates and increased profits.
Smart and Flexible Pricing Helps Keep Guests
Pricing is another important factor to consider when investing in short-term housing. While it may be tempting to set a high nightly rate in order to maximize profits, this can actually have a negative impact on occupancy rates. Guests are often more attracted to properties that offer affordable rates, especially in competitive markets.
To ensure that the property is always occupied, it is important to set smart and flexible pricing. This means adjusting rates based on demand, seasonality, and other factors that may impact occupancy rates. By offering affordable rates and being flexible with pricing, it is possible to maintain high occupancy rates and generate steady income.
Conclusion
Investing in short-term housing can be a lucrative opportunity for first-time buyers. However, it is important to understand the unique aspects of the short-term rental market in order to be successful. By identifying properties that are well-suited for short-term rentals, doing thorough research on the local market, being creative in finding guests, investing in recurring and on-call maintenance services, understanding guest needs, and setting smart and flexible pricing, first-time buyers can maximize profits and succeed in the short-term rental market.