The Future of Short-Term Rental Management

The short-term rental industry has come a long way. Once mainly for vacation rental property owners with a few properties, business leaders in multifamily have started to add short-term rental units to their portfolios. Kigo Senior Vice President Matthew Hoffman says the industry has a lot to offer multifamily owners and managers if they keep their eye on the ball. And now is a good time to either dip a toe deeper into the market or expand portfolios. On Brad Larsen’s national podcast, Property Management Mastermind, Hoffman said the foundation of the short-term rental industry is getting sturdier with institution of policies and procedures that have driven its multifamily counterpart. And regardless of the size of the property management company, there’s money to be made in short-term rentals. “This has been an evolving, up and coming industry,” Hoffman said.  Building success in short-term rentals and staying protected In the podcast, Hoffman shared best practices and advice, touching on the benefits of good reviews and how owners and property managers can cover their assets to generate good revenue in NOI for the long term. “It’s been very exciting as we see short-term rentals burgeoning year over year,” he said. “The growth over the next two years, going from global industry from $120 billion to $190 billion by end of 2020, is significant as we see short-term rental supply really converge with hotel supply and sit alongside the same accommodations as guests are looking for all the amenities of a home.” Apartment operators can get started by opting by creating short-term rental units from those that have previously been slow to rent long-term. This is a great way to boost occupancy. But, he adds, expansion or extending a brand into a new market comes at a price, and owners and management companies should take steps to protect themselves against risks inherent to the industry as well as evolving r...