As a savvy property manager, you already know that not all vacation rental property investments perform equally across changing trends and markets. When building your property portfolio, being mindful of how property types can impact overall performance is essential for maximizing returns.
Let's examine how major residential property types—houses, condominiums, apartments, and townhouses—can determine your portfolio's resilience in shifting markets.
Bookings Per Property Type
By comparing bookings per property type in 2019, 2021, and 2023, it is clear that different rental property types perform in unique ways as the market shifts.
Single-family houses saw the largest gains in bookings per property during 2021, but the largest decline in 2023. In 2023, houses were down 16% in bookings per property.
Meanwhile, condos and apartments saw the the smallest declines from 2021. In 2023, condos experienced an 11% decrease in bookings per property. Apartments had the smallest decline in bookings per property out of all property types at just a 6% decrease.
Townhouses have the smallest number of bookings per property in 2019, 2021, and 2023. However, they did not experience a decline in bookings as drastic as single family homes in 2021 or 2023.
*Direct data reservations made by November 29th, 2023
Using This Information As A Guide
Using this information and monitoring your rental portfolio for performance surrounding changing market conditions can help you build a winning strategy. It may be a good idea to diversify your rental portfolio with different property types. Property managers should also, however, take into consideration their brand and best performing properties.
Within your Key Data Dashboard, you can drill down to bedroom counts and property types to help you examine your own performance and make the best decisions when it comes to adding new inventory. By segmenting down to measure performance, you can also make nuanced decisions about pricing, marketing, and stay lengths for each property type. You can also share this information with new homeowners to help explain why their property would do well with your company.
As you evaluate new properties for your rental portfolio, factor in how property types can impact performance during various conditions. Need help getting started? Reach out to our team!