Who owns a luxury Short Term Rental?

Question

What amenities do you have that makes your STR special.  What do you charge per week?  How long is your season?  What is the demand like.  Can someone deep dive their experience?

Michael Baum · Answer

And what does "luxury rental" mean anyway. To some it is a nice lake house, to others it is being able to land their chopper on the helo pad to find amazing hors d'oeuvres awaiting them.

Unless you truly own a luxury rental, people are overselling their spaces.

Nathan Grabau · Answer

If you are looking for data like this I would get a pricelabs subscription with an example property in a market you are interested in. Beyond pricing, price labs can show seasonality along with the perks that hosts offer based off of similar properties and total bookings.

For example, in my market we see that washer and dryers really drive bookings, and a larger percent of places that get booked have them, than total available properties!

Account Closed · Answer

I agree with looking at PriceLabs. PriceLabs will tell you % occupancy for each month, along with average daily rates.  Also look at Airbnb and VRBO "luxury" properties in various markets (or look at sites that exclusively rent high-end properties.  You can see what they provide and what they charge.  As for how long the rental season is, that's also a loaded question.  Some places like Hawaii are 90%+ occupied throughout the year.  It also depends on what size luxury house you're talking about.  A luxury 1 bedroom might rent to couples all year.  A luxury 12 bedroom home might not rent well in an area that has an off-season because you can't get that many guests together when kids are in school or when the weather isn't optimal, whereas a 1 bedroom might still rent in that same area.  I have one property I consider luxury (as compared to the area it's in) and it rents for $3k per night in the high season. But, I prefer properties that are just higher end; meaning nicer than most properties in the area.  Those command a higher price and, in my opinion, will stay rented even when a market softens.

Clay Asplundh · Answer

My STR in Florida goes for over $1,000 per night on peak weekends or months which are December to April. We have nice furniture, a pool, putting green, grill, and small outdoor bar area. These amenities are what creates consistent bookings and drives higher revenue for us as many neighboring properties lack one or multiple of the amenities we have. Feel free to message me if you have more questions!

Account Closed · Answer

Luxury? Not sure if it fits the definition but I just finished a commercial building conversation; office building to STR with 23 Airbnb units. It's considered high rise by building codes on Main Street. Does price point = lux?

Zach Kidd · Answer

"Luxury" is definitely subjective. For me, it starts around 10x of the average market price.

While not my playing field at the moment, it comes back to fundamentals.

Who are the potential clients? Why would they want that property (in that area)? What pain or pleasure point are you addressing? What are you offering that others can't, or won't? And How are you going to reach them so they will even consider your property?

Luxury markets have luxury yields, sure. However, are you prepared to service that market? Can you actually offer something on par with a big hotel with a valet, concierge, porter, room service, etc.? Not necessarily to include those services, but something of equal or greater perceived value?

To borrow from J Massey, if you're used to playing a Walmart game, or even a Target game, that's not going to cut it with a Nordstrom-level customer.

John McKee · Answer

Interesting read from Evolve on best places for an STR:

https://evolve.com/blog/homeow...

Kerry Baird · Answer

I think one of mine is classified as a luxury, for its market.  If it were in another location, it might not be “luxury.”

It has an award winning kitchen, granite, pot filler, Wolf appliances, but the reason I can get $1200-1500 a night is because it is big, has a heated pool and is walking distance to the beach.

John McKee · Answer

Anyone else want to give a deep dive on their high end STR?

John McKee · Answer

Yes.  I'm talking about 10K-15K a week stays.

Who owns a luxury Short Term Rental?

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