By: Randall Walton

 

Let’s face it: travelling is different. Although the hotel and inn business are still booming, more and more people want to vacation in a private space just for them and their companions. This is why the number of short-term rentals steadily increases year after year. Short term rentals allow people to stay in home-like environments, complete with privacy, without the inconveniences of hotel living (aka instant ickiness).

Charlotte’s short-term rental market is rapidly growing, according to industry experts. A booming economy and a yearly population increase helps justify the market for this type of real estate.

Charlotte – the new hub for short-term rentals!

Airbtics, a website that compiles short-term rental statistics for cities around the world, estimated the total number of Airbnb and VRBO listings in Charlotte by the end of 2022 was 2,622 (1,207 and 1,415, respectively). Using the chart above, Charlotte does not have as many short-term rentals as other cities, such as Atlanta or Brooklyn. However, we do have more short-term rentals than some major tourist destinations, like Las Vegas and Orlando. Also, Charlotte does have more VRBO listings than larger cities, such as Atlanta, Brooklyn, and Chicago.

Why are short-term rentals a great investment?

Debating whether or not to develop your own short-term rental in Charlotte? Let me share some interesting facts with you! According to Airbtics, short-term rentals had a good year in 2022:

• Average occupancy rate: 48%

• Average nightly rate: $160

• Annual revenue: $36,204

• Peak season: March

If all of that hasn’t convinced you yet, see how Charlotte’s annual short-term rental revenue compares to other markets.

As you can see, Charlotte brings in more annual revenue than some of the country's most desirable destinations such as Las Vegas, Chicago, Orlando, and Portland. More people are choosing Charlotte than ever before due to a couple of reasons.

For one reason, the World Population Review noted that Charlotte is the 15th largest city in the United States, with a population of 917,527 (2023) and a growth rate of 1.59%. It also designated Charlotte as the third fastest growing city in the U.S. with an expected 47% surge in population growth by 2030. People flock to the Charlotte due to its respected reputation of being a commercial, financial, and technical hub. Some major banks – including Wells Fargo and Bank of America – are located right here, which brings in plenty of newcomers and interns to the city. Some of these people may not want to jump into the housing market quite yet, so short-term rentals present a great opportunity for investors.

This great opportunity comes with a great challenge: How do you attract people to your short-term rental out of the thousands available in Charlotte? The key to successfully making your short-term rental stand out above the rest is similar to doing the same for your home when it’s time to sell: staging.

Good news! You don’t have to have to do it yourself! Dragonfly Homes is here!

Staging a short-term rental is imperative when marketing your short-term rental. Why? Because pictures matter. According to Meero, a company that help professional photographers find employment, estimates that 75% of people who book short-term rentals say that pictures have a huge influence over whether or not they choose a particular rental. Meero also notes that professional photographing your rental does three things:

They increase your CTR (click through rate): attaching high quality photos to your listing could help you get as much as 63% more clicks,

By doubling the amount of reservations, they increase your revenue: listings with photos will help your rental bring in up to 40% more revenue, get 24% more reservations, and may allow you to increase the prices by 26% per night, and

Increase your ROI (return on investment): by earning more revenue and increasing prices, high quality photos will help you easily maintain the rental while making a profit.

Therefore, the importance of high quality pictures in the short-term rental industry should not be overlooked. Short-term rentals must looked impeccable in these photographs, but also inviting enough so that a potential renter can see themselves in the spaces. This can be a tricky balance, so working with professionals – such as those at Dragonfly Homes – will help you navigate that balance without the stress and hassle. Dragonfly Homes is a premier staging company with a proven track record of producing striking designs guaranteed to catch the eye of any potential renter.

With a short-term rental, there are times when you may have to start from the ground up. The home you purchased may need little more than a fresh coat of paint. You think some walls might need to come down and you’re just not sure what’s going on with that kitchen. Instead of just a home stager, you need to employ the services of an interior designer as well. Good news! Dragonfly Homes doesn’t just stage rentals but can assist in helping you craft a design for your home as well. By providing design and staging services, the professionals at Dragonfly Homes can guide you through the processes of renovation and staging to produce a rental that will bring in renters and revenue.

Hunter Moll, owner of The Buildery - a highly sought after construction company in Charlotte, knows a good investment when he sees one. Not only does he scout out properties with income producing potential but he collaborates with Dragonfly Homes to help renovate and design his short-term rentals. Check out this exclusive interview below:

1. Can you tell me a little bit about yourself and your business? Why did you decide to get in the Airbnb market?

I love real estate and manage a fully integrated real estate company called The Buildery. The company has licenses in brokerage and construction and specializes in many other areas of real estate as well. Typically, we buy a house that needs work, then fully renovate it in-house using our own construction company. After that, it is either sold using our in-house agents, or retained as a long-term rental or a short-term rental, which is managed by our in-house property management company. We chose to get into the short-term rental market to diversify our portfolio while creating exceptional spaces for guests to enjoy in the Charlotte area!

2. How would you describe the Airbnb market in Charlotte?

1) The Airbnb market is currently reaching a point of oversaturation here in Charlotte. This is for several reasons. To name a few: Charlotte is one of the cities that does not have restrictions on short term rentals yet, causing investors from other areas to flock here,

2) The topic of creating short-term rentals is trendy now, and the process is often oversimplified online, causing many people to try it,

3) There was a post-covid travel boom and people created rentals to account for the increased demand. However, demand is dropping, and supply is still increasing.

3. What do you think are the benefits of working with an all-inclusive design and staging company on an Airbnb project?

The biggest benefit is the ability to create a uniform aesthetic from all parts of the project, creating a more cohesive look and experience in the end.

4. Why did you choose Dragonfly Homes to assist you with this project?

I had worked with Dragonfly Homes on other staging projects and liked the staging work. I knew I would need flexibility and responsiveness, and Dragonfly Homes excelled in these aspects at other projects.

5. What has it been like working with Dragonfly Homes? What advice have you received from the Dragonfly Homes team and how has it benefited your project?

The communication is great, and having a second set of eyes on the projects has been very helpful, so I can tend to other parts of my business that require attention as well.

6. What would you say to investors who are hesitant about bringing in an outside design and staging company to their rental projects?

I would say that they need to evaluate their goals and where their energy is best spent. For some people, spending the time to handle this aspect of their business could be the right decision. But for others, having the freedom to focus on other areas is going to be more profitable and effective.

7. Would you consider working with Dragonfly Homes in the future?

Of course!

According to Redzy, a leading online booking and distribution platform, 59% of travelers are booking trips 2-5 months in advance and 62% of travelers are planning to take trips in 2023. With travel rates steadily rising, now is the perfect time to enter the short-term rental market. Also, an enticing web presence is key to keeping your short-term rental profitable. Dragonfly Homes’ experienced experts can help you take the guesswork out of renovating and staging your short-term rental and provide you with sound advice, clarity, and piece of mind.

 

References

Jovana Stankovic, “Should you invest in an Airbnb in Charlotte in 2022?,” June 26, 2022. https://www.mashvisor.com/blog/airbnb-charlotte-nc/#:~:text=Airbnb%20Cap%20Rate%3A%203.53%25,Airbnb%20Occupancy%20Rate%3A%2054%25

Kevin Tjoe, “Global travel & tourism statistics 2023,” October 12, 2022. https://rezdy.com/blog/global-tourism-statistics/

Pauline Gabrielli, “How photographs impact the performance of short-term rental sites,” April 30, 2019. https://www.meero.com/en/news/digital_marketing/513/1906-how-photographs-impact-the-performance-of-short-term-rental-sites-en#:~:text=Professional%20photos%20are%20crucial%20for,your%20reservations%20and%20your%20revenues.

Robyn Pena, “Airbnb Occupancy Rates by City in 2022,” April 28, 2022. https://airbtics.com/airbnb-occupancy-rates-by-city/.

World Population Review, “Charlotte, NC Population in 2023,” N.d. https://worldpopulationreview.com/us-cities/charlotte-nc-population