Research Insights The Professionalization of U.S. Short-Term Rentals

The Professionalization of U.S. Short-Term Rentals

Short-term rentals (STRs) were already on the path to becoming an integral part of the lodging landscape over the last decade. But pandemic-induced demand thrust them into the limelight and accelerated their growth. STRs are projected to account for 27% of the U.S. lodging market in 2021, a 10-point increase in just two years.

The emergence of STRs as an alternative to hotels has led to the adoption of services that have transformed the industry. Running an STR can be complex and requires implementing and managing technology, day-to-day operations and ensuring regulatory compliance. No surprise then that many hosts are turning to property managers (PMs) for varying degrees of assistance with managing their rentals. This trend towards professionalization has sharply accelerated over the last two years. PMs currently provide many services for hosts but there are still opportunities for growth.

This white paper looks at the changing landscape of STR management, how professional management adds value and offers a way forward as regulatory challenges loom. It is based on key findings from Phocuswright’s comprehensive research on the U.S. short-term rental market conducted in 2021. The study included quantitative surveys and interviews with key stakeholders. There were 442 qualified respondents to a survey of U.S. hosts, and 90 qualified respondents to a survey of short-term rental property managers. Phocuswright also conducted 13 in-depth interviews with experts across the STR ecosystem.

The full paper is available to download after completing the form below.