The vacation rental regulatory landscape is continually evolving as governments and municipalities adapt to the growing popularity of short-term rentals. With the rise of platforms like Airbnb and Vrbo, local governing bodies are working to strike a balance between supporting the sharing economy and addressing concerns related to housing availability, neighborhood character, and taxation.

As the regulatory landscape becomes more complex, staying vigilant and informed about local laws and zoning regulations is important. Our VRC Team works hard to keep abreast of changes to local regulations, actively engage with local governing bodies and stakeholder groups, and advise our Homeowner Partners accordingly. We’ve found that proactive engagement with local officials helps shape future regulations that strike a fair balance between the interests of property owners, VRC as Vacation Rental Managers, and local communities.

We actively engage in conversations with local officials in many of our communities and encourage our Homeowner Partners to engage in discussions with local officials. Sending letters to governing bodies, writing letters to the editor of the local newspaper, and participating in public meetings are all great ways to ensure your private property interests and ability to rent your home on a short-term basis are preserved. If local regulations change, be on the lookout for information from our teams about regulatory requirement changes, the need to obtain permits, and adherence to occupancy limits to ensure your home remains compliant with local regulations.

Smart home technology, including innovations like smart locks, is becoming commonplace in the short-term rental industry. These cutting-edge devices offer owners and guests an unprecedented level of convenience, security, and control. Smart locks, in particular, are a game-changer. They allow for keyless entry, eliminating the need for physical keys and facilitating seamless check-ins and check-outs. Guests can access their rental property using a unique digital code that is accessible on their smartphone and only activated during their stay, providing guests with a contactless and secure experience.

Not only do smart locks enhance our mutual guests' experiences, but they also give us added visibility and control over your home. They allow us to monitor property security, manage access permissions, set unique codes for owners, housekeepers, maintenance teams, and every guest staying in your home, and easily streamline guest turnover. The peace of mind offered by smart locks, coupled with the enhanced guest experience, has made them an essential component of modern short-term rentals. It is also a primary reason we're phasing out our legacy locks and will be upgrading the locking mechanisms in all of our homes to smart locks.

We are also deploying other smart home technologies in partnership with some of our Homeowner Partners. Things like smart thermostats and lighting systems offer energy efficiency and personalized comfort, allowing guests to create their ideal ambiance.

Image: Nest Labs

Understanding VRC’s Dynamic Rate & Revenue ManagementRevenue management in the world of short-term rentals is the art of fine-tuning your pricing strategy by keeping a close eye on the ever-changing dynamics of supply and demand. Put simply, it's about making sure your property is priced just right, listed on the best platforms, and ready to shine at precisely the opportune moment. This pricing wizardry isn't a new concept; it's a well-established practice that traces its origins back to the airline industry in the 1970s, initially known as Yield Management. Its success prompted giants like Marriott International to adopt it in the 1990s, making it a cornerstone of the hotel industry. Now, it's no surprise that this discipline is making its mark in the short-term rental space, providing property owners with a powerful tool to maximize their income.

At its core, revenue management hinges on a simple yet profound principle—supply and demand. Supply represents the number of available homes or nights, while demand denotes the number of travelers searching for accommodations. The strategy revolves around pinpointing the highest price point that can be charged without leaving your property unoccupied. This entails vigilant monitoring and fine-tuning of your pricing based on the ever-shifting dance between supply and demand. Recent years have witnessed substantial fluctuations in occupancy rates and revenues, driven first by changes in demand (such as the impact of COVID-19 or this summer’s Taylor Swift Eras Tour) and then by shifts in supply, as more homes entered the vacation rental market. In the realm of revenue management, our mission is to be the guardians of this delicate balance, making pricing decisions that respond dynamically to these fluctuations. It's like switching between different pricing gears during high demand times, referred to as "compressed demand," and low demand periods.