A lot of real estate investors are looking into various tech startups for past few decades. A lot of them have come across innumerable bitcoin investors who have earned huge amount due to blockchain appreciation. Although such investments are of high risk, yet their adopters have become millionaires in crypto business. Short term rental investment funds have also integrated high tech means, which mainly relies on digital currency. The best part about role of technology in short term rental investment is the digitalization of core real estate funds.
Short-term Rental Investment Funds
Growth Of Short-Term Rentals
A lot of Explorers have moved towards short-term rental investment funds, like vacation houses that we see on Airbnb. It also includes some other booking platform like Expedia, which has contributed to the global sharing economy. Generally, short-term rentals produce more than 30% more profits for landowners, or stockholders than long-term occupancies. The overall estimation of this as per global market valuation is around $100 billion in 2018 alone. The expenditure is huge, particularly when yearly holidays are around. As per short-term rental data provider known as Transparent, metropolises like Karachi witnessed their average increase in daily rates by more than 100% on Eid.
Though such kinds of substitute housing started taking off 10 years before. All this was possible due to startups like Airbnb, the hoteling industry saw growth at a quicker pace than hotels. Due to Airbnb, the rental properties have become more tech-enabled, with a intense concentration on professionalization. As per the latest report of Bloomberg, Airbnb produced a huge ecosystem of hospitality startups, which ranges from noise monitoring system to keyless tools. One must follow proper rental investment property strategy for rental growth.
Millennials noticing current trend
Many millennials recognized the opportunity for rental real estate investment funds by listing their own rooms or houses across Airbnb. Some other apps like Expedia.com, and Booking.com have also enable millennials to achieve financial prosperity and independence by renting out accommodation. There have been some other side gigs too that have become full-time because of new-age property managers. Now a lot of entrepreneurs are achieving monetary independence by creating sustainable businesses out of this transforming trend.
However, they are not the only ones who saw such tremendous opportunity. In 2013, some other companies have been creating a short-term property management platform that identifies opportunity to tech solution. That tech solution would help in decreasing the annoyance of continuous guest statement and handling schedules across booking platforms. Such innovation resulted in creation of a platform that mechanizes and rationalizes the operations linked with short-term rentals. Millennials are also getting experience in learning about property portfolio strategy.
Entrepreneurs facing problems
Some modern property entrepreneurs have shared the similar pain points when one talks about their property management dealings. They are not willing to prefer to be less hand on, as they take pride in facilitating a guest experience. They are willing to create a consistent and sound procedure, which seems to be difficult in a regulatory atmosphere. Their reliance on various distribution channels to boost their visibility is creating hurdles in scaling their business. They are unsure about the starting point of real estate investment strategies.
With the addition of short-term rental properties and short-term real estate funds, things have drastically changed. Such trend has had huge impact on their investment portfolios, where new property kinds have emerged. Such trends is visible throughout Pakistan, and has resulted in progressively auspicious growth. This trend involves co-living spaces on college campuses along with some furnished rooms available for rent. All of this has been possible due to innovation in tech solutions that push this space forward. It has even enabled renters to manage their Airbnb business from their comfortable living room couch. Please reach out to professionals of Estate Land Marketing to learn more details about this trend.