Short-term rentals are a good investment if you do your homework and employ a sound strategy, according to Dr. Connor Robertson. Dr. Robertson has built a sterling reputation as one of the foremost experts in the short-term and vacation rental industry. He has leveraged cutting-edge technology and strategic insights to optimize property management and market positioning and has educated thousands of aspiring investors on the potential of short-term rentals.
Evaluate the Market Thoroughly
Research is king when it comes to identifying prime short-term rental opportunities. Dr. Robertson stresses the importance of researching the area and analyzing market data. Look at whether this is a destination people will want to visit, whether the location depends on a particular season or is attractive all year round with a peak season that allows for increased rates, and what type of rental demand currently exists in the area.
Dr. Robertson also evaluates broader trends, such as travel patterns, to determine whether the location attracts business travelers – those attending conferences or in industry-dominant areas.
In addition to identifying lucrative markets, he targets high-demand, underserved areas, particularly those with emerging tourist attractions or limited hotel accommodations. For example, Dr. Robertson advised a client to invest in a property near a newly opened ski resort. By leveraging the resort’s growing popularity, the client achieved 85% occupancy rates during the peak season, far exceeding initial projections.
Look at what property owners on Airbnb and Vrbo are charging for short-term rentals in the area you’re looking to invest in.
Dr. Robertson also emphasizes the need to understand the local regulations, including HOA rules, permit requirements, and zoning restrictions that govern short-term rentals in the desired area.
Assess the Property
When looking at a specific property, assess whether its size, features, and amenities are ideal for short-term rentals and align with the target market. Assess the condition of the property and the extent of repairs or renovations required, if any.
Dr. Robertson also recommends reading the reviews on Airbnb, Vrbo, and other home-sharing platforms to see what renters say about comparable properties and the area itself.
Financial Analysis
Dr. Connor Robertson also helps potential investors project the viability of a short-term rental. You’ll estimate the rental rate you charge using market data and comparable homes. You can predict the number of days the rental will be booked by analyzing local patterns and the competition. It’s also critical to compute all anticipated costs, including mortgage payments, property taxes, insurance, utilities, cleaning fees, maintenance, and any potential management fees, to calculate prospective profitability and compare expected income to the entire investment cost.
Utilize Advanced Technology
Integrating technology into property management is a key component of Dr. Connor Robertson’s short-term rental strategy. He advocates employing dynamic pricing solutions, which modify nightly rates in response to demand, the competition’s pricing, and seasonal trends. This ensures that properties maximize revenue while maintaining occupancy rates. Dr. Robertson also recommends employing automated guest communication systems to manage booking requests, provide check-in instructions, and answer typical questions, which saves property owners time and effort.
Helping Others Break into the Short-Term Rental Market
Through workshops, online courses, and speaking engagements, Dr. Robertson has empowered individuals to achieve financial independence and build lasting wealth through real estate. His mentorship is particularly impactful for those new to the industry. For example, he worked with a schoolteacher with no real estate experience, to purchase a short-term rental. In less than a year, her property was generating enough cash flow to replace her teaching salary, allowing her to pursue real estate full-time. Another success story involves a couple who inherited a dated vacation home in a declining market. Dr. Robertson suggested they renovate the property, add modern amenities, and market it as a unique staycation destination. The bottom line: The couple experienced a 300% increase in annual revenue.
