Short Term Rental Forum - Early Panelist Insights
Sean Breuner, Founder & CEO, AvantStay
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains? The volatility in the market has created an opportunity for world-class operators to stand out with a shift towards a more professional approach with better marketing, dynamic pricing, enhanced guest communications, and more—all contributing to a better guest (and owner) experience. For AvantStay, it’s made us laser-focused on differentiating ourselves through operational excellence, incredible experiences, and concierge value-added services. Additionally, the drive towards efficiency has accelerated adoption of technology in the industry, which has been key to our success.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically? I firmly believe in STR as the next big opportunity as an asset class—it offers more adaptability to market changes, supports diversified income streams, and allows for a unique ability to leverage a strong brand and operational excellence to stand out given the still-fragmented industry. Plus, I have a personal passion for travel, specifically the shared connection we get through traveling together, and AvantStay is all about helping guests create those memorable travel experiences together.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
1. Local expertise is key: find trusted partners and vendors who understand the local community well.
2. Guests want an experience: invest in high ROI experiential amenities like a pool, pickleball court, pool tables, etc. to bring the hotel-like experiences into the comfort of a
private home.
3. 5-star guest experience has a flywheel effect: a great experience drives return guests and glowing reviews, which will also attract more new guests and drive higher
conversion on your listing
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving?
● Travel trends: remote work, flex living, unique properties, unique experience packages
● Institutional investment & PropCo partnerships
5. If you had $50 million to deploy in STRs, what would you do with it? Location-wise, I would focus on areas around national parks and bodies of water, especially in the Southeastern U.S.—guests want to enjoy the outdoors, then return to relax in a beautiful home. I’d find opportunities where we can truly add value and kit out properties with world-class group STR experiences.
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation?
I’m heading to Colorado for a month, and then doing a RV trip through all of the AvantStay markets in the Southeastern US. AvantStay owners get travel credits to stay at other AvantStay homes, so I’m getting a taste of the same experience!
Riley Goldman, CEO, Beachside VR
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains?
I believe we are going to see a leveling off of vacation rentals. I think cost of living is increasing so rapidly that we are going to start seeing a slow down in travel/vacations.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically? So I personally am diversified when it comes to real estate. I own all long term rentals, short term rentals and commercial units. Currently, I am really focused on commercial real estate more than anything else.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
1) It is way harder than people make it out to be. Everyone sells it as a "passive investment" and it's the least passive investment in real estate.
2) Do not get emotionally attached to real estate. Look at real estate as a business and do not become infatuated with it.
3) Always underestimate rather than over estimate. If you can make things work in the worst case scenario, it's a good deal.
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving? I think as a lot of larger companies are struggling with scaling, it is becoming difficult to scale and take advantage of your home market.
5. If you had $50 million to deploy in STRs, what would you do with it? I would probably spend most purchasing boutique motels/hotels. Small little 15-20 unit spots.
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation? I am going on a road trip all across the country couch surfing!
James Bagley, CEO, City Homes
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains? The STR industry continues to evolve for the better. Ten years ago a consumer had to wait for a “quote” to book a unit. Six years ago the consumer was able to create an instant booking on an OTA. The booking channels continue to become more accessible for the consumer which grows the STR industry.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically? We are located proximate to Disney and our core DNA is producing STR new home inventory.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals? Distribution channels, location, customer reviews.
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving? Purpose Built Vacation Rental inventory
5. If you had $50 million to deploy in STRs, what would you do with it? We build purpose built STR communities such as Reunion Resort and Margaritaville Resort Orlando. Our next STR project is Smoky Mountains.
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation? We work during consumer vacation periods and take breaks in September and October.
Talia Lockard, Director of Sales and Marketing, Hosteeva
The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains? Every industry experiences growing pains. Like individuals, we must learn from our failures and let our passion drive our success. Since 2012, the ups and downs have been unique but not necessarily more intense. The industry's growth into new areas has created regulatory and safety concerns that attract media attention, which we didn't see 10 or 20 years ago. The increased scrutiny doesn't mean we're failing; it means we're doing things right and people are paying attention.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically?
I stumbled into vacation rentals, not knowing what they were until my interview at HomeAway in 2012. Looking back, I always knew I'd be in sales, but I didn't have a positive view of salespeople, having grown up around many car salespeople who fit the stereotype. Vacation rentals allowed me to help small businesses thrive by providing products to streamline their operations. That feeling of making a difference kept me hooked. Who wouldn’t want to work in an industry that’s all about making memories?
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
- STR/Vacation Rentals is not a get-rich-quick or passive income scheme. Hospitality is 24/7 work, and the guest experience and perception are paramount. Step out of your homeowner shoes and think like a traveler.
- We are a new industry, still in its infancy. No two success stories will look alike, so do your research.
- Build the plane, then fly it. Make a plan that brings value; don’t sell vaporware. Doing the right thing goes a long way.
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving? Co-hosting: This hybrid approach allows owners to maintain control while offloading more tedious tasks to those with better access to technology, 24/7 assistance, while still keeping the local feel.
5. If you had $50 million to deploy in STRs, what would you do with it? I froze at this question, so I asked my founder for help: Choose five secondary markets and build 8 to 10-story condo/hotel buildings. Alternatively, take another $50 million in debt and build small buildings in eight different markets.
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation? My husband and I have worked in this space for some time, and we always laugh about knowing too much, which makes it harder to plan a vacation. This summer, we're taking the whole family to Gulf Shores, Alabama, a family favorite. We might also sneak in a no-kids trip somewhere quiet; a cabin in the mountains with no cell service sounds like a dream.
Farhan Abassi, CEO, NueHoldings
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains?
There is a reason hospitality assets trade at higher cap rates than multifamily - there is higher volatility and risk. But investors and operators that can successfully navigate the waters are rewarded in the long run. As crude as this sounds, one silver lining is that some operators will shut down, and market players will focus on other asset classes in the short-run. That means lower supply in the pipeline, which, in theory, means higher RevPar. The winners will be those who have a long-term view and can pivot their assets and service in ways that meets demand - whether that means targeting a different demand driver, or adjusting their clients' or investors' expectations for the challenging years. It's important to note that those bought pre-2019 will be more likely to weather the storm. Those who entered the market in 2021-2023 will face the biggest challenge.
Another facet is diversification. Not every market or product-mix has been a loser. Our investment and management portfolio reflects a blended product mix of urban multifamily, mid-term rentals, co-living, and now boutique hotels - not just short-term rentals or traditional vacation rentals. While domestic/regional leisure was highly successful in the post-pandemic years, urban short-term rentals have been a bear story. We believe that urbanization and globalization will make a comeback as a long-term secular trend.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically?
Cash flow, cash flow, cash flow. There will always be a demand for alternative ways to live and travel, and that excites us at Nue Holdings and our management brand StayNue.com.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
Don't let the gurus oversimplify the multi-faceted effort it takes to scale beyond 5 units. Don't take revenue estimates at face value, wherever the data comes from. Don't let the seller or even the client dictate your impression of what the property should deliver. Be as conservative as possible so you can under-promise and over-deliver. This has led us to slower growth, but it has allowed us to survive through the painful periods where some of our peers have shut down or have faced cash flow issues.
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving?
We are generally bullish on urban multifamily where short-term and mid-term rentals form an important component of the overall lease-up and rental strategy. We feel secular trends will favor urbanization and global travel, in some cases to higher than pre-pandemic levels.
We are also building a fund investment thesis around a value-add boutique hotel and motel acquisition strategy. These assets are typically not flagged by a hotel brand, and run independently by an owner who is not utilizing modern techniques such as dynamic pricing, multi-channel management, digital bookings, etc.
5. If you had $50 million to deploy in STRs, what would you do with it?
Value-add strategies covering boutique hotels and multifamily.
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation?
I return to Boston for a Harvard alumni event + a development site tour I've organized for a real estate association I'm on. Otherwise I'm on lockdown since I'm expecting my 2nd child in October. We just had a nice babymoon in the Bahamas (Grand Hyatt Baha Mar) where I bumped into Gary Owen (iykyk) at the wave pool.
Ben Wolff, Co-Founder, Onera
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains? Invest in being unique and experiential. Our properties that are truly 1-of-1 in a marketing continue to be highly profitable.
If your property is unique and experiential, then invest in social media, content and digital marketing more broadly. Driving bookings direct can save ~14% on OTA fees that go right to your bottom line. You also reach a more aspirational, less price sensitive shopper on social media than on the OTAs, so they often buy higher demand days and you'll often see a higher ADR on direct bookings.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically? I love hospitality. I truly enjoy creating unique experiences and lasting memories for our guests. Unique stay STRs / boutique hotels are also the highest performing real estate asset type I've seen in over a decade. These real estate developments routinely generates 15-20% return on cost / cap rate.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
1) Don't buy or build a commodity. It's a race to the bottom. There's too much product coming online, so you must differentiate your property.
2) Create a unique, instagrammable property and then leverage social media to drive direct bookings.
3) Be willing to invest heavily in high impact areas to see outsized returns - design, finishes, architecture, amenities, furniture and decor, content (video / photo), social media influencers, etc.
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving? Unique stays and landscape hotels. We are seeing 15-20% return on cost and the ability to sell at a 7-10 cap rate (which hasn't been validated in single family home STRs).
Unique stays and landscape hotels are more shareable / instagrammable than commodity STRs. They allow you to build a brand and promote your stays on social media driving direct bookings and cutting out OTA fees. Not only are you able to sell the real estate at a cap rate, the brand and social media accounts you build can also be worth millions. Instagram will become a primary, if not the leading, booking engine by 2030. It's more of an engaging, shareable, entertaining experience for guests than traditional OTAs, and it's better for hosts as you save on OTA fees, reach aspirational buyers who aren't price sensitive, and control your guest journey from the start.
5. If you had $50 million to deploy in STRs, what would you do with it? I'd deploy it into Oasi's next three landscape hotel projects.
Here are the next two:
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation?
Opening Onera Wimberley! Onera's second location. Progress videos below:
In terms of vacation, I'm going to Nova Scotia with my dad and some friends to play golf at this epic resort - Cabot Cape Breton.
Dustin Abney, CEO, Portoro
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains?
- Headlines only show a small segment of what is going on, and typically with the largest companies in the spotlight with complex business models. If you look at the majority of the industry and the players that make up the 90% - it is thriving! STR's continue to take share away from hotels, most companies are stabilized after COVID booms, and the landscape of technology and tools continues to get better. There is a lot of noise that casts as shadow on the positives that we are all experiencing.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically?
- I started as a STR investor/owner, like many in the industry. It was, and is, not only a great investable asset class, but it gave my family a way to invest in something that they could actually use and make memories with. I sought to give others that same experience.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
- It's not a part-time job, and it's hyper-competitive. Guest and owner demands are high, and to compete with professionals, you must treat it as a business. I would study those in your local market who are doing it well. Invest in systems and teams that can help you grow without losing sight of hospitality focus. Don't try to be everything to everyone. Find your niche and focus!
4. If you had $50 million to deploy in STRs, what would you do with it?
- Exactly what we are currently doing. Buy exceptional local, single-market operators who want to exit the business as a market entry strategy and build a national platform that keeps the integrity of those businesses while improving the margin profile and performance at scale. Invest in high ROI technology, but don't build tech for tech's sake. Invest in high-performing industry experts to join the team. Poor gas on the fire and go!
5. Do you have any big plans for the summer? Where do vacation rental managers go for vacation?
- I plan to visit several of our current markets with my family and prospect a few new markets. Traveling with my family brings me great joy and keeps me close to our guest persona, learning about how we and others are doing. We plan to visit SC, FL, OR, TX and many other great locations!
Marianne Heder, Property Management Inc, Executive Director, Short Term Rentals
1. The short-term rental industry has seen its share of ups and downs recently. Where can we find a silver lining in an industry that’s currently going through some growing pains? The silver lining is the industry's resilience and adaptability. Despite the challenges, we’ve seen innovation flourish, with hosts implementing creative solutions to enhance guest experiences. This period of growth is forging a stronger, more sustainable industry. Additionally, I foresee a blurring of the lines or a merging of management models between short-term and mid-term rentals, further broadening the scope of offerings to adapt to diverse markets and traveler needs.
2. What drove you to focus on short-term rentals vs. other types of real estate assets? What do you enjoy about short-term rentals specifically? I am a passionate person who loves moving fast and engaging with dynamic environments, driven by a deep passion for trailblazing and making a difference. This naturally drew me to PMI and short-term rentals. The personal connections and unique experiences offered by STRs set them apart from traditional real estate. Not only do they allow us to positively impact the world around us by creating memorable stays for travelers and the support of local communities, but the fast-paced and ever-evolving nature of this industry keeps me exhilarated and engaged every day. There's an immense opportunity for building wealth through the rapidly expanding experience economy.
3. For the newbies/STR-curious, what are the top 3 things you would say are the most important things they need to understand about owning/operating short-term rentals?
- Hospitality First: This goes beyond property management; it's about creating unforgettable and personalized guest experiences that spark positive word-of-mouth and glowing reviews for your properties. It's a steadfast promise to uphold your brand's Guest Happiness Guarantee
- Regulations Matter: Stay informed about local laws and regulations to avoid costly mistakes. I strongly encourage all hosts to get involved with your local city council. Join forces with your local competitors and build strong relationships to strengthen our industry and thrive together. Remember, we are stronger when we link arms and stick together.
- Flexibility is Key: The market can change rapidly, so be ready to pivot and adapt your strategies to stay ahead.
4. Where are the biggest opportunities in the short-term rental industry right now, and how do you see this industry evolving? The biggest opportunities in the short-term rental (STR) industry now extend beyond merely offering places to stay. Viewing STRs as experience-based real estate assets is crucial. These properties can cater to a diverse traveler base by offering flexible accommodations that meet various individual needs, including different lengths of stay. Sustainable and eco-friendly rentals are particularly promising, and appeal to environmentally-conscious travelers. Additionally, integrating smart technology can transform these properties into more than just accommodations by enhancing guest experiences and streamlining operations.
5. If you had $50 million to deploy in STRs, what would you do with it? I would focus on developing eco-friendly, tech-enhanced properties in emerging markets. This strategy meets the rising demand for responsible travel and bolsters local economies. Investing in community-driven initiatives that equip local hosts with training and resources will further enrich the offering, turning STRs into holistic experiences that guests seek out for more than just a place to sleep.This caters to the growing demand for sustainable travel and also supports local economies.
6. Do you have any big plans for the summer? Where do vacation rental managers go for vacation? This summer, I plan to explore some unique and remote PMI-managed properties to experience them from a guest's perspective. As a short-term rental manager, I find joy in discovering hidden gems and gaining insights that I can use to enhance guest experiences globally.
Register for IMN's Short Term Rental Forum (Summer)
June 24-25, Austin TX