Before you invest in a property, list it on RentalTrader, and start accepting bookings, there’s something of the utmost importance that you need to do choose the right vacation rental market. The market you select plays an integral role in your overall success as a short-term rental host or investor. In this slideshow, we will help you to choose the right vacation rental market in 2022.

1. How to Choose the
Right Vacation
Rental Market in
2022
Which direction will you
take your investment?

2. Why You Need to Do Your Research Before Investing
● Vacation rentals are a
relatively new strategy for
real estate investors
● Local regulations have a huge
impact on vacation rental
success
● A detailed data analysis can
ensure that your investment
pays off

3. The Role of Market Strictness
● Short-term rental
regulations can make or
break your investment
● In some areas, STRs are
limited or even illegal
● There are three levels of
market strictness: relaxed,
moderate, and stringent

5. Market Maturity and Its Impacts
● A market is mature when
vacation rentals have been
part of the economy for quite
a while
● Mature markets have had
time to find a balance
between STRs and hotels, and
between STR owners and
permanent residents
● Mature markets = agreeable
regulations
● Less mature markets = more
volatile regulations

6. Three STR Market Types
● There are three main markets
for vacation rentals: metro,
regional, and national
● Each of these has its own
regulations, types of tourists,
pros and cons, and
opportunities for cash flow

8. ● Metro markets attract lots of
visitors, but they don’t
depend on tourism
financially
● They usually have lots of
hotels
● Residents and hotel lobbyists
constantly push to eliminate
vacation rentals
● Diverse pool of guests to
appeal to
● In metro markets without
strict regulations,
oversaturation is a concern

9. ● Regional vacation markets
have little to no industry
outside of tourism
● Very few permanent
residents
● Tourists mainly consist of
families and couples
● Affordable and accessible
● Regional markets do well
even during recessions

10. ● National markets are
sometimes called “true
vacation markets”
● Financially dependent on
tourism
● Typically mature markets
with stable regulations
● Hotspots for family
vacations, honeymoons, and
large group trips
● Highly profitable during
economic booms, but don’t
have much recession
resistance

11. Finding and Analyzing Tourism Data for a Specific Market
● Look at year-over-year
figures for the market as a
whole, not an individual
property
● Check out the local
Department of Tourism
website
● Other places to get data:
○ Hotels
○ Conference centers
○ Tourist attractions
○ National Park Service
○ Universities

12. Assessing Potential Income from a Market
● Look at market trends using
tools like Mashvisor, AirDNA,
and Key Data
● Get additional information
from major national property
managers like Vacasa and
Evolve
● Avoid sources that don’t use
data from the major booking
platforms

13. Thanks for watching!
Visit RentalTrader.com to book your next vacation