Tomms Short-Term Rental Obersavation
Summer in Minneapolis and St. Paul is what is considered a busy season in the short-term rental market here in Minnesota. Now that summer has turned to fall, bookings have started to slow. For some owners a slight panic seeps in knowing that revenue is dropping. Right now, Tomms Property Solutions provides short-term rental cleaning in the Twin Cities as well as providing handyman work for over 10 properties all across the Twin Cities metro area. We’ve seen the dip; we’ve also seen some brilliant moves by short-term rental owners to lock in revenue over the winter.
For example, there was a short-term rental in Northeast Minneapolis that was booked out most of the summer. Once September and October came bookings slowed dramatically, the owners knew this was coming and they began to show the property for a 6 month rental term to prospective tenants. At the end of October a tenant will move into this once said short-term rental for six months. When May rolls around it’ll pivot back to a short-term rental and begin raking back in higher returns. Securing a steady tenant was smart by this owner and we believe they did the right thing.
In Maple Plain, an owner built a home with the hopes of trying to make it a short-term rental. Its first month was August and had 4 bookings, a good start. Then came September and only 1 came in; by October they decided to list and sold within days of listing for a handsome profit. There’s nothing wrong with buying something and testing out the short-term rental market then moving on if the property isn’t performing like it should.
Location
We’ve seen location as a huge factor in the success of these Short Term Rentals – however, there’s much more that goes into it. A big theme we’ve seen is the properties that do better are truly set up for people to feel like they’re at home and most times they can sleep a good number of people (over 5 or 6 people). The Airbnb’s in Minneapolis and St. Paul have proven to do the best so far through fall and it hasn’t been close. If you’re a real estate agent, a property manager, a property owner, or something else it’s vital to study this market before jumping. It’s not a sure success, but it’s also an incredible opportunity if you can see the gap in this market and lean into the right markets. If you’re looking for more insights or would like us to provide short-term rental cleaning for your Airbnb or VRBO; contact Tomms!
