As the technology changes so do the beliefs of the people and businesses. Current technology is fast and wants to cover a large kind of audience. This transformation has caught the eyes of new businesses everywhere. Whether you are a traveler, a businessman, a landowner or a homeowner you would have noticed that everyone is travelling at a swift pace right now. This has led to the emergence of short term rentals. This has also led to a change in how people generate income and how they will, for future prospects, invest in their businesses.
From the retail industry to real estate, experience has become the most significant part of any business to provide. In search of new experience, travelers have been emerging and adding to market growth. This has led to the growth of the economy in double the rate. As more and more travelers are rising the food and beverage industry has also been growing a lot. Studies show that 44% of people prefer eating out. For this, your business needs to be where the people are. This expanding demand, audience size, sections, and competition have ended in the progression of consumer behavior, preferences, and expectations, triggering an entirely new set of global, digitally related possibilities in the hospitality marketplace.
Airbnb is leading the market by having more than 4 million properties in over 65,000 cities, combining more than top 5 major hotel brands.
So What are short term rentals?
Short term rentals are usually based on the time length of renting a particular property. Vacation rentals are a kind of short term rental. Also, this has gone as far as even renting out for commercial properties. The acceleration of pop-up shops in malls an even commercial complexes has made it prominent. A short term rental typically starts from a few hours and goes up to a few days.
The flexibility of the short term renting makes it suitable for the tenant. The properties provide you with all the amenities that you need and help you in cost-cutting. For the landowner, they can increase the price of property whenever they would like and also rent it out on a time that is suitable for them.
Platforms that are based on Short term renting-
Airbnb- Your Vacation Rental Platform
Find unique places and experiences with this website. This is a platform that can be used to rent out homes for a short period of time. This platform has grown so much in just a small period of time. You can find all the different types of stay rentals in different areas. It has now become a Millennial favorite spot.
We work- Co working and office space
It has a global network of workplaces that you can rent for a short period of time. Meeting rooms, office spaces, private office, conference rooms and also event spaces can be found on this platform. Find comfortable shared office spaces and keep the work going.
Myrsa- Temporary Renting of Vacant Spaces
Myrsa.in has everything that we work has and much more. This is a website where you can find short term renting of commercial spaces whereas you can even find retail or any kinds of spaces for any kinds of activities. Here the renters can rent out any extra space to the brands that would require them. The most popular spaces would include parking spaces, garden areas, clubhouses etc. Brands can use these kinds of spaces for any of their promotional activities or people can use these spaces for events or celebrations of all kinds. Spaces for popup shops in malls or kiosks spaces can be easily found over here. It has a vast variety of activities and also a huge variety of spaces. You can visit the website to know more.
Growth Drivers of Short Term Rentals
The rise of the Sharing Economy: Retail space sharing isn't new. Sharing economy means to share or rent out something that is not in use. A property that you own but there are some spaces that are of no use to you or they cannot even generate any income for you. Some of the businesses selling complementary products end up sharing more than just the space. These spaces can be of use to many other businesses even the smallest of vacant spaces can generate you income. Utilizing them for generating extra income can be a great idea. There has been a lot of growth in these types of economies in different sectors like travel, car sharing, rent sharing, finance etc.
Flexibility: Short term rentals are extremely flexible. In many cases, they start from a period of a few hours and can go up to a few days. Vacation rentals are of a similar kind and if you are a commercial property then you can rent them out after hours or on the weekends. It is up to you to decide when you can rent out the property and this makes STR one of the primary reasons for renting. Seasonal brands, seasonal cafes or and many other retailers can make use of the STR and have their own shops set up everywhere.
Value for Money: The average cost of a vacant property on a short term basis can generate a lot of income than what a long term investment would give. With a wide selection, from places with high visibility to a small space, affordable places have become easier with the STR properties. They are now becoming primary choices for many.
Rental Property Investments: The preference of the millennial and the generation x demographic for rental properties over ownership has succeeded in rising rental yields and sustained demand growth for investments in real estate rentals. Also, pop-up shops are a trend that millennial intend to follow.
Popup-centric Technology Platforms: Popups are becoming extremely popular to reach out to different audiences. Millennial's love this idea and brands want to impress the millennial's through this. Every brand needs to have its own pop-up shops in different places. Testing out markets becomes easier through these platforms as you can have different popups in distinct areas for a short period and find out which one is the best to invest in. Also, the phrase "here now and gone tomorrow" makes it more desirable for the consumers.
Wider reach: Business owners can easily increase their brand reach with the STR programs. You can open up a number of shops at a point of time and it helps you grow further with your audience. You don't actually need to have to invest in the property essentially, but can still have your brands at all the different places.
The STR marketplace has brought a change in the definition and meaning of property ownership by disrupting the long and traditional way of hospitality. This has given a new way to earn income from the real estate ownership business. It is now a thing that no one chooses to ignore and adapt it to their business as soon as possible to make the most.
Adapt to this new way to carry out your business and utilize all your spaces to the fullest by monetizing them!