Short-Term Rentals Are Getting Popular Again. Here’s Why.

02.03.2024 - 11:59 / forbes.com

When you book a short-term rental from Tabas by Blueground in Rio de Janeiro, you get an apartment that feels more like a resort. Everything from the furniture to the towels is standardized. Linens, soap, bedspread — it's all so hotel-like.

"We have our standards," says Leonardo Morgatto, Tabas' CEO.

He's not alone. If you rent an apartment in Los Angeles with Landing, you'll find the same resort amenities, including soaps, dishes and bedspreads. You can also check in with an app. (Landing even has a Nomad Pass, which includes a partnership with Frontier Airlines, that offers unlimited flights and stays across any of its apartments for $1,495 a month.)

Short-term rentals are getting popular, and it's not just because they're adopting more hotel amenities and features. If you've looked for a reasonably-priced hotel, then you know why. Lodging rates will increase almost 7% on average in 2024, according to research by BCD Travel. In some cities, they're already in record territory. That means travelers are trying to find other options.

Long-term rental options like Tabas by Blueground or Landing often have minimum stay requirements. But in a world of flexible work, many travelers are willing to fit their schedules around rental opportunities. That might mean taking a sabbatical or an extended summer break or a workcation.

"Rising hotel costs have driven more interest in apartment or home rentals," says Susan Sherren, founder of the travel agency Couture Global Trips.

Shelley Hunter, an innkeeper from Quincy, Calif., recently tried to find accommodations in Anna Maria Island, Fla., a popular seaside vacation destination. The hotels were way outside her budget, and they were landlocked. Then she found a rental through Vrbo.

"We were able to get two bedrooms and two bathrooms with a separate kitchen, dining and living room," she says. "We just could not find a hotel at any reasonable price that could offer anything close."

Her property was also on the beach, with ocean views. Plus, there were the hotel amenities.

"It has everything a hotel has — soaps, towels and a coffee maker," she says.

“There's been a big shift in the vacation rental landscape," says Danielle Finch, director of customer experience at HomeToGo, a vacation rental site. "The majority of vacation homes now offer more standardized amenities, akin to what you would find in a hotel, while also providing a more personalized and authentic experience."

Among the amenities that have become standardized:

Even the existing amenities have become more hotel-like. For example, Spectrum Resorts, which manages hundreds of vacation rental units on Alabama's Gulf Coast, has begun offering a clean bedding guarantee consisting of washing all linens,