[MUSIC] It's no secret
the pandemic kicked off
a dark time for vacation rental properties.
The safer at-home lifestyle created a far
from ideal environment for the travel industry.
But thankfully, several factors
have come together to make
these properties one of
the brightest spots in real estate investing.
Again, I am Kate from The Motley Fool,
and I spoke with Nell McPherson above
the three reasons why
vacation rentals will be big in 2022.
For most people,
traveling used to be something that you
just did one or two weeks out of the year.
Full-time work tended to make being away
from home much more than that pretty
impractical for a lot of people
but the pandemic has thrown the gradual shift to
more flexible working lifestyles that
was already taking place into overdrive,
it's looking more and more like that gymming
never go completely back in the model.
Office demand fell to
39 percent below 2019 levels last month,
and of those companies requiring
employees to return to office,
only 15 percent expected to do
that with new hybrid arrangement of any time.
That's according to commercial real
estate services group, CBRE.
The vast majority of office employers plan to allow
at least some degree of flexibility
for the network going forward.
A lot of families and groups of friends
stayed largely apart for 2020,
and they came back together this year,
and one of the space,
the environment to make
those get togethers really something special.
That said, it's still early to say
whether this will be a one-off occurrence for
2021 or a lasting trend that will stick going forward.
According to Airbnb CEO, Brian Chesky,
the shift has inspired some
of the site's recent upgrades.
They now have the ability for host to verify
Wi-Fi and appreciate what's actually requirement,
so that when remote workers are
going somewhere for work and travel,
they know how they're going to be
able to work over there.
The trend is also leading to longer stays because
talks vacations people are
setting in and getting to work too,
which means many travelers now
have an even greater desire for a
true home-away-from-home over the hotel experience.
A nice bonus to that for hosting property managers is
this a reduced turnover tends
to mean less work for them also.
They're also making it easier for guests to find
specific types of properties that they're searching for.
The site now includes a category for off-beat homes.
Because demand for unique properties
has spiked since pandemic began.
When people weren't venturing
out as much when they traveled,
they like the idea of having
a Homebase that was an adventure and so.
Like flexible work arrangements,
this taste for unique rental properties
looks like it might be here to stay also,
all 10 of the fastest-growing property types Air DNA
identified for 2021 offered
some form of unique experience.
Meaning that could be tiny homes,
or yards, farm stays,
or even tree houses.
How much do you think vacation
rentals hosts expect to make?
It varies quite a bit, of course,
based on property type,
and location, and
what's going on in the world at this time.
But a lot of the answer revolves around
that supply-demand balance that we were
talking about, according to Air DNA,
the average annual revenue for
vacation rental properties is
actually ending this year at
an all-time high of $56,000,
which is just a remarkable follow-up to 2020.
This figure is expected to decline about five percent
next year as supply increases and rates decline,
but to then stabilize and see another increase in 2023.
Like in most of the real estate investing world,
right now for pandemic is,
of course, the wild card in all this.
No one can say for sure whether
widespread shutdowns or
increased travel fears will be repeated.
But as you can see, there are some very exciting things
going on in the vacation rental property space,
and recovery from its pandemic low has been very swift.
If you keep all these new travel trends in
mind when searching for and marketing your property,
you could find yourself hosting
a very successful vacation rental on the new year,
if a rental like that is not in your budget right now,
you might also want to take a look at
Airbnb and consider investing.
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