Short-term rentals often offer greater income potential than their long-term counterparts, but they necessitate a strategic business mindset. Mike Savage, co-founder of SynergyStays, provides insights into effective strategies that can help Airbnb listings perform better. He emphasizes the importance of monitoring the median booking window and focusing on weekdays rather than just weekends.
Having managed both long-term and short-term rentals, Savage recognizes a fundamental difference between the two. For long-term rentals, property owners can enhance property standards to potentially increase rent, but earnings are largely dictated by the market. A three-bedroom, one-bathroom house typically commands a rate similar to comparable properties in the vicinity.
In contrast, short-term rentals provide more opportunities to influence revenue, albeit with increased effort.
Investors must consider not only the purchase price and location but also the operational management of the property, maintenance, guest communication, hospitality, marketing, photography, and listing descriptions.
Savage began investing in short-term rental properties in South Carolina in 2017. At that time, leaving guests a friendly note and a bottle of wine was sufficient to earn five-star reviews. Today, with much stronger competition, that approach is no longer adequate.
Having left his job as a firefighter to invest full-time and develop SynergyStays, a revenue management firm for short-term rental owners, Savage outlines three strategies he employs to help properties achieve better results.
1. Focus on the Median Booking Window
Short-term rental owners often prioritize occupancy rates and average daily rates (ADR). However, Savage argues that the median booking window—how far in advance guests typically book—is equally critical.
Understanding this metric can assist owners in deciding whether to maintain or lower prices.
If guests commonly book around 30 days in advance in a given market, an owner trying to fill a vacancy for 60 days out can afford to keep prices relatively high, as there is still time for demand to build.
However, once the property enters its typical booking period, it may be time to consider lowering rates.
Owners should avoid relying on last-minute bookings, which can force them to offer steep discounts to fill empty nights.
Savage identifies falling into a last-minute booking cycle as “probably the biggest mistake” among owners managing their own properties.
2. Emphasize Weekday Stays, Not Just Weekends
According to Savage, filling Friday and Saturday nights is relatively easy. The greater opportunity for improving performance often lies in attracting guests from Monday to Thursday.
This means owners should review their calendars for nights that are underperforming and then facilitate bookings for travelers.
One common mistake, Savage notes, is establishing overly strict minimum stay requirements.
An owner might insist on a four-night reservation during the high-demand summer season to avoid short stays and maximize income, but this could also result in their listing not appearing in searches from guests planning a two-night trip.
Instead of completely blocking such shorter stays, Savage recommends allowing guests to book at a higher rate while also offering discounts for those reserving longer visits.
The same logic applies to cancellation policies. A strict policy may appear to protect the owner from last-minute cancellations, but it could also deter potential guests seeking flexibility.
“Removing as many restrictions as possible can enhance the visibility of the listing,” Savage asserted.
Owners can then leverage pricing and discounts to encourage the booking behaviors they prefer.
3. Avoid Trying to Appeal to Everyone
Savage believes one of the most significant changes in short-term rentals has been the shift towards more personalized search results.
Rather than asking how to make their listing appear on the first page for every traveler, owners should instead consider, “For whom will I appear on the first page?”.
Airbnb can utilize a guest’s search history, previous bookings, past reviews, and declared preferences to display homes that align with their needs.
For instance, a traveler who has shown an interest in family-friendly amenities may more frequently see listings prominently featuring a fenced yard, a quiet street, or a crib for their child.
This emphasizes that specificity is more valuable than attempting to create a universal home that appeals to everyone.
“This is counterintuitive. We just want as many people as possible to want to book our home,” he explained.
As he added, properties designed with a specific guest profile in mind—such as families with young children, remote workers, or pet owners—can attract guests willing to pay more and leave better reviews because the home meets their particular needs.
“We don’t need everyone to want to book our home,” Savage said. “We just need a specific profile that we can speak to better than anyone else—and that’s how we win the game.”
