Demand for Short Term Rentals Increases

Consequences for the housing shortage compound, but create opportunities. 

by Dustin Rinker on October 12th, 2021

The housing shortage in Western Montana continues to be pronounced into the Fall. Typically demand for rentals starts to wane as school starts, the weather changes  and most people settle into for the coming fiscal year - but this year once again demand for housing continues to hold steady. The continued high demand for housing has created more opportunities for short term investors. 

Normally short term rentals (defined as guests staying for less than 30 days) are used for exactly that - short term stays. But medium term rentals (30 days - 6 months) are in very scarce supply. When landlords can get their pick of tenants for long term leases - there is no reason to entertain shorter term leases. But desperate to find accommodations; many people are turning to AirBnb and VRBO to find rentals - and are leasing at high premiums. 

AirBnb/Vrbo rates are somewhere between hotel rooms and unfurnished units - so for many renters it’s a more affordable option than a Hotel. Investors are recognizing the trend as well. There has been an increase in short term rental units by 20% in 2021 alone - and vacancy rates are very low. 

Opportunities continue to grow for those who are paying attention to the market; which is why we expanded our management services to include short term rentals here at Bigfoot Management Group. 

Thoughts?: dustin@bigfootmg.com