Growth Predicted in Vacation Home Rental Market
A poll conducted by rental manager indicates real estate professionals expect an increase in the number of property management firms, as well as an increase in rental homes.
New research from Rentl, the California-based technology-enabled vacation rental manager, reveals that 77% of U.S. real estate professionals expect the number of vacation homes in the US to increase over the next three years – with 24% expecting a ‘dramatic’ increase in their number.
Only 10% expect the number of vacation homes to fall between now and 2022.
These findings help explain why 69% of U.S. real estate managers and professionals interviewed expect the number of vacation homes in the country that are on the rental market to increase over the next three years.
It’s estimated that between 25% and 35% of second homes in the U.S. are currently on the rental market, but 41% of real estate professionals expect this to be between 35% and 40% in three years’ time. Some 28% expect over 40% will be on the rental market by then.
One in five of those surveyed anticipate the percentage of vacation homes on the rental market will be the same as today, and only 4% think it will fall.
One of the key drivers behind the growth of the vacation home rental market is technology. 55% of real estate professionals say that advances in technology have made it easier for owners of these properties to generate an income from them, and 46% say it also gives them greater flexibility as to when they do this.
“Our research suggests that the U.S. vacation rental market is set for strong growth over the next few years, and a key driver behind this is technology which is making it easier for owners to generate an income from their properties when they want to,” said Scott Drexel, co-founder of Rentl.
“However, it’s important not to overlook the fact that technology is also making it easier for rental management companies like us to provide even greater protection for our clients’ properties, ensuring tenants are respectful and behave appropriately in relation to looking after the property they are staying in and respecting the local community and neighbors.”
Rentl’s research also shows that with a growing U.S. vacation home rental market, 55% of real estate professionals expect the number of companies managing these properties to increase over the next five years, with 14% anticipating a ‘dramatic’ rise here.