The Ultimate Guide to Short-Term Rental Platforms
As a property owner looking to enter the short-term rental market, choosing the right platform to list your property can significantly impact your success. With numerous options available, each with its unique features and target audience, it's crucial to understand the differences. In this blog, we'll review some of the most popular short-term rental platforms: Airbnb, VRBO/Expedia, Google Vacation Rentals, Furnished Finder, Tripadvisor Rentals, Booking.com, and direct booking sites to help you make an informed decision.
1. Airbnb
Airbnb is arguably the most well-known short-term rental platform, catering to a global audience. It allows hosts to list everything from spare rooms to entire homes. At COHO Collective, we feel that Airbnb consistently outperforms all other channels.
Pros
Wide Reach: Airbnb has millions of listings worldwide, increasing your visibility.
User-Friendly Interface: The platform is easy to navigate for both hosts and guests.
Strong Marketing Tools: Airbnb offers various promotional tools and a robust review system to help you build credibility.
Cons
Platform Fee: Airbnb charges a service fee for hosts, typically about 3%.
Ideal For: Hosts looking for maximum exposure and a user-friendly interface for both guests and hosts.
2. VRBO
VRBO, which stands for Vacation Rentals by Owner, is part of the Expedia Group and focuses primarily on whole-home rentals, making it popular among families and larger groups.
Pros
Family-Friendly Audience: VRBO attracts guests looking for larger accommodations, ideal for family vacations.
No Guest Fees: Unlike Airbnb, VRBO typically doesn’t charge guests a service fee, which can be appealing to travelers.
Cons
Limited to Entire Properties: VRBO does not allow room rentals, which may limit options for hosts with shared spaces.
Higher Listing Fees: VRBO charges a subscription fee or a pay-per-booking model that might not suit every host.
Ideal For: Hosts with entire homes or properties targeting family or group travelers.
3. Google Vacation Rentals
Google Vacation Rentals allows users to find rental properties directly through Google searches. Listings appear in search results, Google Maps, and Google Travel.
Pros
Seamless Integration: Your property can be found easily through standard Google searches.
No Additional Fees for Guests: Google doesn’t charge guests a service fee, which can attract more bookings.
Cons
Limited Control: Google acts as an aggregator, meaning you may have less control over your listings compared to dedicated platforms.
Less Established: While growing, Google Vacation Rentals is not as established as Airbnb or VRBO.
Ideal For: Hosts looking for additional visibility without the constraints of a traditional rental platform.
4. Furnished Finder
Overview
Furnished Finder specializes in corporate housing and long-term stays, catering primarily to traveling professionals and medical workers.
Pros
Targeted Audience: If your property is near hospitals or corporate offices, this platform can attract long-term tenants.
Lower Fees: Typically lower commission rates compared to traditional vacation rental platforms.
Cons
Niche Market: The focus on corporate clients means fewer general leisure travelers.
Limited Exposure: Not as widely known as other platforms, potentially leading to fewer bookings.
Ideal For: Hosts with properties in areas frequented by traveling professionals or those seeking longer stays.
5. Booking.com
Originally focused on hotels, Booking.com has expanded to include vacation rentals, attracting a diverse range of travelers seeking unique stays.
Pros
Global Reach: Booking.com is one of the largest travel platforms, providing significant exposure.
User-Friendly Interface: The site is easy to navigate for both hosts and guests, with a streamlined booking process.
Cons
High Commissions: Booking.com typically charges a commission fee that can be up to 15% per booking.
Less Focus on Rentals: Some guests may still view it primarily as a hotel booking site, affecting rental perception.
Ideal For: Hosts looking for broad visibility and those with properties in tourist-heavy areas.
6. Direct Booking Website
Creating a direct booking website allows hosts to manage their property listings independently, providing guests the opportunity to book directly through the host's site without going through third-party platforms.
Pros
Higher Profit Margins: By avoiding third-party fees, hosts can retain a larger share of their rental income.
Brand Control: Hosts can build their brand and create a tailored experience for guests, showcasing their property’s unique features.
Better Guest Relationships: Direct communication with guests can lead to improved relationships and repeat bookings.
Cons
Initial Setup Costs: Developing a professional-looking website can require an upfront investment in design and hosting.
Marketing Efforts: Hosts need to invest time and resources into marketing their website to attract visitors, which can be challenging without an established audience.
Limited Exposure: Unlike established platforms, a direct booking website may lack immediate visibility, making it harder to reach potential guests.
Ideal For: Hosts with a strong marketing strategy and those looking to establish a unique brand presence in the short-term rental market.
Taxes
When using a platform other than Airbnb, hosts need to be prepared to remit lodging taxes to their state. You can read more about how to do so in the state of Montana in our blog post, ‘Get Compliant: Montana STR Rules.’ We always recommend consulting with a tax professional to discuss your situation.
Conclusion
Choosing the right short-term rental platform depends on your property type, target audience, and willingness to manage fees and regulations.
Airbnb is ideal for those seeking broad exposure and flexibility.
VRBO/Expedia works best for whole-home rentals aimed at families.
Google Vacation Rentals offers great visibility with minimal fees.
Furnished Finder targets traveling professionals looking for longer stays.
Booking.com provides significant global reach, ideal for unique properties.
Direct Booking Sites help hosts establish their unique brand presence.
By understanding the strengths and weaknesses of each platform, you can better position your property for success in the competitive short-term rental market. Consider listing on multiple platforms to maximize your reach and increase your chances of booking success.
WE CAN HELP!
At COHO Collective, we always start by creating your initial listing on Airbnb. We use a software called Hostaway to integrate your listing immediately into Google Vacation Rentals and our Direct Booking platform. We then expand our reach by creating a VRBO listing which is cross-listed on Expedia. If your winter season is slower, we will look toward capitalizing on the mid-term market through Furnished Finder.
A quick note - while we can integrate and list with Booking.com, this platform has a complicated payment handling, high host commissions, doesn’t allow guest reviews, and typically has a higher cancellation rate.
