Investment firms enter the short-term rental market

Vacations aren’t what they used to be. Today’s home-based workers who have no limit on their distance from the office have nothing to stop them from taking vacations. while job.

Most of the vacation homes — where traveling remote workers often set up shop — are owned by people looking to boost their income by renting out their property on sites like Airbnb. But it’s hard to stop Wall Street from being a lucrative business. On Tuesday, New York-based investment firm Saluda Grade announced a new venture with short-term rental operator AvantStay to buy $500 million worth of homes for rent.

Holiday Road

Gone are the days of Clark Griswold loading up the station wagon and taking the family on a cross-country trip to a gated amusement park. Thanks to short-term rental services like Airbnb, more and more travelers are forgoing hotels to rent a home by the lake, in the mountains, or near Wally World, even if it’s just for a quick change of scenery. rhythm :

  • In the summer of 2021, 28% of rental travelers stayed in a short-term rental for the first time, and by the time the holidays rolled around, that number had risen to 43%, according to Deloitte.
  • It may not just be a COVID boom: Three in four new travelers said they would continue to use short-term rentals with amenities and wifi near popular attractions, even after the end of the pandemic.

WeRent: Other big Wall Street investors could also play along. Earlier this year, controversial WeWork founder Adam Neumann bought controlling stakes in more than 4,000 apartments valued at more than $1 billion in Miami. , Atlanta, Nashville, Fort Lauderdale and other US cities, and could use these apartments to create a WeWork for rental. Marlet.

Regulatory risk: Short-term rentals are often more lucrative than long-term leases, but renting an apartment to travelers rather than a family may be illegal in some cities. Local governments in New York, Boston and Santa Monica have approved bills that require hosts to register with the city before renting out their short-term accommodation. Stricter policies may be in the works.