Empowering Homeowners to Explore Short-Term Rental Income
In an ever-evolving real estate landscape, Realtor.com® has unveiled a groundbreaking tool to aid homeowners in assessing the financial benefits of listing their property as a short-term rental. This innovative feature, nestled within the “My Home” dashboard, equips homeowners with valuable insights into the potential income they could generate. In partnership with Censuswide, a respected research consulting firm, Realtor.com® conducted a survey that revealed a staggering 40% of homeowners are either actively considering or have contemplated renting out a portion of their primary residence as a short-term rental. However, the decision to embark on this journey often hinges on understanding the financial returns it could yield.
Last week, Realtor.com® unveiled a powerful estimating tool designed to offer property owners a clear glimpse into their potential earnings should they opt to list their homes as short-term rentals. Accessible through the “My Home” dashboard, this tool leverages a seven-day rental estimate rooted in Airbnb data from comparable listings within the same ZIP code. It’s important to note that actual earnings will naturally vary based on local regulations, property availability, rental pricing strategies, and demand within the area. Homeowners can use this tool to generate earning estimates for hosting either a single room or their entire property.
Mausam Bhatt, Chief Product Officer at Realtor.com®, underscored the financial advantages of short-term rentals, stating, “Short-term rentals are a great way to help with some of the costs of homeownership. Renting out their house for a couple of days or weeks when it’s not in use could generate extra income that can be put toward the mortgage, maintenance, or even help cover the cost of a vacation.”
Turning Dreams into Reality
The survey conducted by Realtor.com® and Censuswide revealed that 34% of homeowners are inclined to consider renting out their property as a means of saving for a future home purchase. Additionally, 21% expressed the intention to utilize the extra income to pay down their current mortgage.
Exploring the Top Short-Term Rental Markets of 2023
To further fuel your ambitions in the world of short-term rentals, consider the top locations identified by AirDNA, a reputable rental data analytics firm, as the most promising for 2023:
1. Fairbanks, Alaska
- Average Daily Rate: $198
- Average Annual Revenue: $49,000
- Occupancy: 65%
2. Evansville, Ind.
- Average Daily Rate: $129
- Average Annual Revenue: $27,000
- Occupancy: 61%
3. Rockford, Ill.
- Average Daily Rate: $175
- Average Annual Revenue: $39,000
- Occupancy: 61%
4. Springfield, Ill.
- Average Daily Rate: $133
- Average Annual Revenue: $29,000
- Occupancy: 62%
5. Burdett, N.Y.
- Average Daily Rate: $345
- Average Annual Revenue: $77,000
- Occupancy: 56%
6. Williamstown, Ky.
- Average Daily Rate: $238
- Average Annual Revenue: $56,000
- Occupancy: 69%
7. New Haven, Conn.
- Average Daily Rate: $207
- Average Annual Revenue: $48,000
- Occupancy: 63%
8. Ellsworth, Maine
- Average Daily Rate: $290
- Average Annual Revenue: $67,000
- Occupancy: 73%
9. Cheboygan, Mich.
- Average Daily Rate: $304
- Average Annual Revenue: $69,000
- Occupancy: 60%
10. North Woodstock, N.H.
- Average Daily Rate: $293
- Average Annual Revenue: $63,000
- Occupancy: 53%
These thriving short-term rental markets offer exciting opportunities for homeowners looking to unlock their property’s earning potential.
As you navigate the dynamic landscape of short-term rentals, consider leveraging Realtor.com®’s “My Home” dashboard and the insights it provides to make data-driven decisions, aligning with your values and principles.