Growth in the private accommodation sector is expected to be worth well over $36.6 billion by the end of 2018; that’s twice the growth rate of the entire travel sector, according to research from Phocuswright. With more travelers avoiding hotels, real estate investors are seeing an open opportunity to invest in short-term rentals as the market continues to experience unprecedented growth. Over a dozen Oregon towns, including Bend, Sisters, La Pine and Sunriver offer real estate investment opportunities for anyone who’s interested in buying short-term vacation rental property.
Technology is Driving Growth
The biggest contributor to growth in the short-term rental market in Oregon is technology. Leading online listing companies like Airbnb make booking rentals a breeze for guests. There’s no doubt that supply is booming as a new breed of tech-driven vacation rental companies like Vacasa continues to make it easier for homeowners and investors to market and maintain their vacation homes. The Oregon-based Vacasa, now the second largest vacation rental management company in the U.S. is using technology like online payments and machine learning driven dynamic pricing algorithm to create a simpler and more profitable experience for vacation rental homeowners. Even for those looking for options to finance real estate investments as prices go higher, better technology, better reach and marketing sophistication helps investors see better ROI in the first year.
The Changing Face of Property Management
Technology alone can’t work. Property management companies are changing the way they manage short-term vacation rentals. With more companies focusing on their service delivery, guests are guaranteed a more comprehensive and inclusive experience. This means having dedicated housekeepers and local operation managers. Managing vacation rentals, especially for big companies like Vacasa requires retaining the best talent and innovative technology. This results in a streamlined experience. Whether you’re planning to turn your second home into a short-term rental or want to buy new vacation homes as a long-term investment choice, taking care of your front line is a sure way to drive overall growth.
Vacation Rentals are Booming
With the number of second homes across states in the U.S increasing, more and more homeowners are opting for vacation rental options. In fact, up to 25% of all second homes in Oregon are used as a rental property and professionally managed. As the guest experience is always changing, it’s important for investors to learn how the industry is adapting to changes in consumer demand. Not only should we expect to see more vacation rentals, we should also expect to see more management companies and a shift towards less than the traditional, offerings, such as boat living and glamping.
It’s clear that different trends are reshaping the state of the vacation rental industry in Oregon. From rental demand to new market opportunities, population shifts to technology disruption, investors can expect a better future.