Short-Term Rentals: Investing in Real Estate

In Italy, investing in bricks and mortar is one of the best-known ways to generate income from one's capital.
There is a new, little-known niche capable of generating staggering figures, and it is precisely short-term renting.
Post pandemic is the tourism sector has really skyrocketed, just look at the News on TV, newspapers, online, on Facebook and everywhere. In 2022 alone it grew by 3% and it does not seem to want to stop its growth.
Short-term real estate rentals


What happens when the real estate sector merges with the tourism sector?
It creates one of the most profitable and up-to-date investment formulas, short-term rentals.


In Europe alone there were 31. 5 million overnight stays in short term rentals in May 2022, an increase of 11.4% compared to May 2019 and more than 56% compared to May 2021, the strength of pent-up demand has allowed for five consecutive months of growth compared to 2019 but we are still only talking about overnight stays, bookings on the other hand, also in May, for future stays have increased by 40.8% every
year since 2019.
tourism italy
The supply of short term rentals is still very low and while there may be a lot of competition in a few years time, this is the perfect time to invest in short term rentals, before it is too late.
The further we move away from the pandemic period, the more the demand grows, but the supply is still very low because people are not yet familiar with the sector and do not rent short term, because they do not know how to satisfy this market demand by losing a profitable business that also grows in value over time.

Can you only make money through short-term rentals in Europe? No of course at the moment it is cheaper, but travel to any destination is increasing rapidly because people can't wait to get out of their small town after two years locked up at home.


Moreover, because of the pandemic, more and more companies are giving up the opportunity of smart working, and more and more people prefer this option to staying locked in the office.


All the change we have seen in recent years leads people to work from home on the one hand, but also to travel more often because they can obviously work from a computer. Another important fact, for which short rentals are depopulating, is that all these trends are helping the worldwide short rental market and the wallets of those who will be informed enough to take advantage of this genuine modern gold mine.


Thanks to the world's largest platform in this market Airbnb and of course in some cases also booking.


Airbnb's impact on the market can be felt all over the world, since the company's launch in 2007 there have gone from zero to 5.6 million active listings and 4 million hosts even user growth has skyrocketed to 150 million users and counting, this means that active users looking for short term home rentals are 26 times higher than the actual properties on the platform, that's why the booking calendar is bursting and there is plenty of room for growth for those who want to enter this market now.
Short-term rental
Data directly from Airbnb show how an average host with a single ad during the pandemic in 2022 in Europe earned over $1000 per month, in North America this number rises to $3500 per month, which is quite a high number if we think we are talking about hosts with a single ad in the middle of a pandemic. Speaking of the Italian situation, there are hundreds of thousands of lodgings on Airbnb for those who use it to rent out their homes, well worth a fifth of household income.

Airbnb itself has conducted research to understand how profitable it is for Italians to rent a house through their platform, the survey involved over 4000 guests and hosts, i.e. those who host in their own home, the data refers to the income that comes from a single property, house or flat that is, the average Italian host gets about 18% of his family income from renting.
airbnb short-term rental italy
A fifth of their income, thanks 100 of those interviewed, said that the region for which they host is to have an extra income to go out and support the rising cost of living, these numbers rise dramatically if we talk about creating an entire business around giving you an airbnb i.e. creating multiple carefully researched listings, attracting more tourists looking for their home for a holiday or honeymoon or even a place to work quietly for a few days and escape from a stagnant work situation.


Italians know perfectly well how much value our country can provide and it is time to exploit it.


short-term rental agency milan


Why should a person prefer booking a house on Airbnb over a hotel?
Staying on Airbnb is usually cheaper and they are also more luxurious so a house maybe a bit better kept than a hotel room. it also saves on food, if you eat in the house it means you don't have to go out to eat every day, very useful for stays longer than a week.



So for people on Smart Working, who want to stay in a location for longer, for example a month, having a kitchen is the best choice. For a tourist when he or she chooses an Airbnb is much more in contact with the city than a hotel or a resort where generally, it is a much more closed life, when you have a house in the centre of Milan, Florence, Venice, Como or in front of the Colosseum it is definitely an opportunity to fully enjoy the city and the host can propose activities, give advice to the tenant for a better stay.
Plus through this activity Airbnb can also accommodate large groups of people and cheaper for renters to take 2 or 3 hotel rooms.


The short-term rental sector is growing steadily and certainly requires a lot of training to manage a property using this opportunity.
Isidera offers a Property Management service to support owners who wish to rent their property on a short-term basis.