The Evolution of Vacationing: How Monthly Rentals Are Shaping the Future of Travel
In recent years, we've seen a significant shift from traditional short-term vacationing (average stay length of 3 to 7 nights) towards extended stays of 28 days or more. This transformation isn't just changing where we stay; it's redefining how we experience new locations and what we expect from our accommodations. Monthly and Mid-term rentals have begun leading this charge and your next best travel or investment decision.
The Rise of Monthly and Mid-Term Rentals
The trend is clear: travelers are seeking more experience and longer stays. But what's behind this shift?
44% of families are now more inclined to work remotely from non-traditional settings – not just their homes. This adaptability translates into longer stays at vacation properties, evidenced by a 68% increase in bookings for stays between 21-30 days.
Remote work is no longer the exception – it's becoming the norm. This newfound flexibility has travelers swapping brief hotel stays for month-long retreats and “workations.” Families are redefining vacation norms, fueled by the new flexibility of remote work and altered work-life balance expectations. According to Vrbo, 44% of families are now more inclined to work remotely from non-traditional settings – not just their homes. This adaptability translates into longer stays at vacation properties, evidenced by a 68% increase in bookings for stays between 21-30 days. Moreover, the demand for flexibility is highlighted by a 33% year-over-year rise in undated searches on Vrbo, indicating a move away from the traditional holiday scheduling. This change reflects a broader trend: families increasingly prioritize quality time and separation between work and leisure, with 77% expressing a newfound appreciation for distinct work-life boundaries post-pandemic.
New research highlighted Booking.com's long-stay booker behavior, revealing valuable insights into why travelers now opt for extended periods away from home. This evolving preference underscores the growing appeal of monthly and mid-term rentals, offering a new perspective on how we view travel today.
But it's not just families looking for work-life balance who are hopping on this bandwagon. Retirees, digital nomads, and even traveling professionals are looking for spaces that offer the comfort and stability of home without the commitment of a long-term lease. Monthly and Mid-term rentals offer this sweet spot between the transient nature of hotels and the permanence of traditional leasing.
Understanding the Shift in Vacation Rental Platforms
Adapting to Growing Demand
As the demand for longer stays increases, platforms like Airbnb and Vrbo are evolving to meet this trend and recognize travelers' shifting preferences. This shift is a response to the growing segment of users, from remote workers to relocating families.
How Airbnb and Vrbo Are Responding
Airbnb has introduced a specific category for long-term stays, acknowledging the nuances that come with longer bookings. These accommodations are not only furnished but are also equipped with amenities that cater to extended periods, mirroring the comforts of home.
Similarly, Vrbo, known traditionally for short-term vacation rentals, has seen an uptick in longer reservations. This is indicative of a broader market trend, where families and individuals are seeking not just a place to stay but a place to live, work, and relax over longer periods.
Monthly Rentals by Owner: Bridging the Gap
While Airbnb and Vrbo are adapting their platforms, Monthly Rentals by Owner and American Snowbird already specialize in this niche, offering a direct line between property managers and guests seeking longer stays. This specialization means guests can often find properties tailored to longer-term needs without navigating the traditional short-term focus of other platforms.
Understanding Fees and Cost Savings
While platforms like Airbnb and Vrbo charge service fees for bookings—which apply to both short-term and monthly rentals—the structure and impact of these fees can vary. For Airbnb, hosts generally pay a flat service fee of about 3% for each booking, whereas guests might pay up to 14-16% in service fees, depending on various factors, including the length of stay and booking specifics.
On the other hand, Vrbo offers a pay-per-booking option or an annual subscription. The pay-per-booking option involves a 5% commission fee from the rental amount plus a 3% payment processing fee. Guests also pay a service fee, calculated as a percentage of the total booking amount, though this percentage decreases as the total reservation cost increases. For property managers using specialized software, Vrbo applies distinct fees, which can influence their overall pricing and profitability strategies.
Monthly Rentals by Owner: A Different Approach
Monthly Rentals by Owner and American Snowbird sidesteps these hefty fees by offering a direct platform for guests and homeowners to connect without the intermediary costs. This makes monthly rentals more cost-effective for long-term travelers and provides property owners with a more predictable income stream, free from the significant percentages taken by platforms like Airbnb and Vrbo.
This direct approach benefits the pocket and fosters a more transparent relationship between property owners and guests. It translates to savings for the traveler and potentially higher earnings for the property owner, all while maintaining a high level of service and convenience.
This direct engagement model can lead to clearer pricing structures and potentially more room for negotiation between property owners and renters, fostering transparency and mutual agreement that suits both parties' financial considerations.
Long-Term Booking Advantages
Beyond fee structures, the appeal of monthly rentals extends to the practicality and convenience they offer, particularly for certain demographics like remote workers, families, or retirees who prefer longer stays for various reasons:
- Remote Work Flexibility: With the rise of remote work, families and individuals are leveraging the flexibility to live and work in new locations. This aligns with the Vrbo report indicating that 44% of families are likelier to work remotely from a vacation home.
- Extended Stays for Quality Time: The trend towards longer vacations, as shown in the Vrbo data with a 68% increase in 21-30 day stays, reflects a broader desire for deeper travel experiences and quality family time.
- Shift in Work-Life Balance: The move towards separating professional and personal life is also mirrored in vacation preferences, with families and individuals prioritizing genuine breaks from work, as highlighted by the increasing reluctance to check work emails while on vacation.
A Closer Look at the Need for Monthly Rentals: Solutions to Regulatory Challenges
The Regulatory Landscape
Recent regulatory shifts across various US cities have posed new challenges for short-term vacation rentals. Regulations can include caps on the number of days a property can be rented out, requirements for registration or licenses, and, in some cases, complete bans within certain zones. These changes, often driven by concerns over housing shortages or neighborhood disruptions, have prompted property owners and platforms to adapt.
Monthly Rentals as a Regulatory Bridge
Monthly and Mid-term rentals can play a crucial role. In many jurisdictions, regulations specifically target short-term rentals, typically defined as stays of less than 30 days. Property owners can navigate these short-term rental restrictions by transitioning to or including monthly rentals as alternate options for their guests. This complies with local laws and opens up a new market segment catering to guests seeking longer-term accommodations.
Meeting Demand While Maintaining Compliance
Monthly rentals meet the growing demands for extended stays while aligning with regulatory frameworks, providing a win-win solution. Property owners maintain revenue streams by adapting their business models to focus on mid-to-long-term lodging, sidestepping the complexities of short-term rental regulations.
Maximize Your Rental Earnings
List your property on MonthlyRentalsByOwner.com and American Snowbird to connect with travelers seeking monthly and mid-term rentals.
Simple, effective, and profitable.
The world of travel is transforming, and monthly rentals are at the forefront of this shift. It's an exciting time to explore the possibilities that monthly rentals offer.