There are different trends in beachfront rental property. There are two main reasons: Millennials and their desire to unplug from the daily grind and the growth of institutional investors. If you plan to rent your beachfront property, keep these trends in mind. You can also check out the different North Carolina beachfront rentals to get an idea of what to look for.
If you are working from home, you probably already have a set routine, dedicated office space, or a standing desk in the bedroom. If you’re trying to transition to a work-from-home lifestyle, you should create healthy boundaries and have an office with a door. You might need a quiet space to work in a comfortable chair and not disturb your neighbors. You may want a beachfront rental that is open and inviting but still provides a little privacy for writing, video calls, and social interaction.
Desire to regularly unplug
Whether you’re looking to recharge your batteries or take a break from work, unplugging in a beachfront rental may be the perfect solution. Research shows that unplugging increases your happy hormones and sense of adventure. So, in addition to being a stress-relief tool, clearing is a great way to explore new places.
While cell phones are great for making calls and texting, they’re also killing our creativity. Unplugging on vacation gives your mind a break from the rat race and can help you enjoy life more fully. Leave your laptop, cell phone, and other electronic gadgets behind for a few days and see what it does for your body and mind. Make sure to implement these new habits before your vacation to give yourself time to enjoy unplugging.
Demand for short-term rentals
The demand for short-term beachfront rentals is booming! The sector is expected to increase by more than five percent in occupancy between the spring break in March and the summer travel season. The spike is likely due to the recent rollout of the Covid-19 vaccine and the loosening of restrictions on visiting infected areas. Several reasons have been cited for the increase, including the increased number of travelers, higher occupancy rates, and fewer restrictions on staying in foreign countries.
The type of property a property offers can also determine demand. For example, travelers may prefer more significant, multiple-bedroom properties for added privacy. Additionally, a beachfront property should offer an experience that most hotel guests will not have. Most renters are also looking for a unique experience when staying in a rental home, so the space’s aesthetics should provide something you can’t find in a hotel.
Growth of institutional investors
There’s been an explosion in the number of short-term rentals over the past several years, and it’s not surprising that institutional investors are getting in on the action. The private equity firms TPG Capital and PAR Capital Management are among the leading investors in the sector. They also have significant stakes in Sonder, a professional management company for apartment properties licensed to be used as hotels. In May of last year, Blackrock purchased 189,769 shares of Sonder for about $900,000.
The Great Recession created a new era of opportunity for Wall Street buyers, including hedge funds, real estate investment trusts, and large private equity firms. After the Great Recession, single-family home prices climbed and returned compounded. With low-interest rates, many wealthy families and institutional investors are looking to the more obscure corners of the property market. With this newfound wealth, beachfront rental properties are prime real estate investment opportunities for wealthy families and institutional investors.