What’s happening in your market? Are guests looking for places to stay? Are there actual bookings going on? Now, more than ever, investors need to stay alert to market trends to act appropriately. The best practice for rental property investment is to find compelling STR data and maintain them.
Short-term rental data can help shed light on how these vacation rentals play into your community’s housing, tourism, and economic conditions. Such facts can help you approach decisions objectively and weigh different interests.
But, not all data is the same. As an investor, finding appropriate data sources for your short-term rental investment would be best. So, where’s the ideal place to find short-term rental data? We’ll discover it below.
But first;
What’s The Real Estate Economic Cycle?
The real estate cycle can help investors to have better knowledge of the nature of the real estate market. The cycle shows investors the importance of data sources on short-term rental investments.
The real estate market supply varies from other markets. Here, constructing spaces takes a long period, causing lag in the market. Hence, it creates undersupply with rapid growth and an oversupply when growth reduces. This way, there’s a short-lived equilibrium in the real estate market.
Moreover, the delayed market movement makes it difficult for real estate investors to time the market correctly. So, data sources become crucial to help market experts place themselves perfectly in the market, and predict future trends.
Sources of Data on Short-Term Rentals
Did you know that achieving $250K annual wealth created per property is accessible and sustainable? As an investor in vacation rentals, you’ll want to work with comprehensive data that helps you get record-breaking revenue. Such data is detailed on the number of rentals in your target market, and how they break down by type. But, it also provides insight into the best approach for a successful investment.
Some of the key points to pay attention to include the following;
- Average daily rate
- Occupancy rate
- How many profits do the properties make
You can find some of this information from your local government and get detailed statistics from analytics platforms. Here’s where to find the data you need on short-term rentals;
- Traditional Sources
The short-term rental strategy has been around even before it gained popularity during the COVID-19 pandemic. At this time, people searched for safe places to stay with family or alone in a secluded place.
Before, real estate experts relied on data from government agencies, annual reports, public surveys, and publications from financial institutions. These sources were the priority because they were free and easy to access.
However, nobody could access the raw data, only the revised editions. Because of waiting for the revisions, analysts had a significant amount of delay before accessing these data sources.
The delayed information also made it hard for analysts to produce accurate predictions. Consequently, the value of delayed data became worthless because it’s too outdated to assess in investing in vacation rental property.
Additionally, the short-term rental market is enormous. Fortunately, traditional sources consist of large amounts of data produced frequently. Once the data is released, experts will actively interpret and select significant sources to add to their analysis.
However, there’s a high likelihood of error in the analysis because of the magnitude of the data. The significant flow of data may allow an incomplete analysis causing experts to miss some crucial data. This can make it challenging to invest in vacation rental property.
Traditional sources also allow analysts to access different data sources. This is a significant problem because of the unregulated assembly of different data even though the subject is the same. For example, people may want to learn about short-term rental investing, but varying details may need to be more accurate.
Still, some analysts might prefer a specific data source more than others. So, it’s hard for different experts to assess the market with a similar outlook and reach a similar conclusion.
- Digital Data Source
Digital sources provide market experts with a more detailed and all-inclusive data outline. With today’s technological enhancements, digital techniques are vast and reliable to overcome traditional data sources. Better still, they are fast, ensuring experts take back detailed information to interested investors as soon as possible.
A simple Google search would be handy if you want to know how to buy your first rental property. Google search data is a vast database that instantly collects data from the minute level. This means you get access from the least to the most significant details of your search.
Google collects data from people’s blogs, social media, daily searches, and online reports. It uses tools like Console, Analytics, and Trends to play a crucial role in market analysis.
Platform data is another significant digital data source for rental property investment strategies. By now, everyone knows about Airbnb. For those who don’t, Airbnb is a vacation rental platform that allows owners to list their property online.
It’s also an innovative digital source crucial to real estate investors who want to invest overseas. This way, guests can easily search for a suitable property for their short stays worldwide.
Furthermore, Airbnb data provides a broad picture of how to invest in vacation rental property. Airbnb is not the only platform, but it’s the current leader in vacation rentals, with an estimated value of over $30 billion.
Wrapping Up
Today, most people depend on the internet to source essential information before making critical decisions. This is true, especially regarding short-term rental investments, on aspects like where to buy a rental property.
Every day, billions of online search queries act as practical tools for investors and economists. The digital data helps them better understand the present trends, which enables them to make good decisions.
Digital sources make a more integrated, balanced, and trustworthy database for real estate experts. Conversely, traditional data sources will struggle to endure the changes in time.
Data is the leading measure in helping experts develop a short-term rental strategy. Eventually, data will remain to be the crucial tool that helps investors to position themselves better in the real estate cycle.
