How to Boost Your Short-Term Rental Income by 30%: Real Strategies from STR Wealth Academy

The short-term rental market is evolving, and standing out is no longer optional—it's essential. In this article, we'll walk you through proven strategies shared by Michael and Katrina from STR Wealth Academy, who have successfully grown their rental portfolio to over 70 units. We'll explore how focusing on key improvements can significantly boost your revenue while minimizing effort. Spoiler alert: One simple addition increased their revenue by over 30%.

Challenging the Myth of Massive Portfolios

One common misconception in the short-term rental industry is that you need a massive portfolio to achieve financial freedom. Michael and Katrina debunk this myth. Instead, they advocate for a more strategic approach:

• Focus on Quality Over Quantity: A lean portfolio with well-designed, high-performing properties can out-earn a larger one riddled with inefficiencies.

• Low Headache-to-Income Ratio: Prioritize fewer properties with higher profitability to reduce workload and stress.

The 80/20 Rule in Short-Term Rentals

Michael and Katrina applied the 80/20 principle to their portfolio. This principle highlights that 20% of your efforts generate 80% of your results. Here’s how they used it to optimize their properties:

• Analyze Revenue Drivers: Identify which properties or amenities are delivering the highest returns.

• Reallocate Efforts: Focus on enhancing high-performing properties rather than spreading resources thinly across the portfolio.

This mindset shift enabled them to maximize revenue without adding more properties.

The Impact of Airbnb’s Shift to Experience-Based Travel

Airbnb is transitioning from budget-focused travel to an experience-based platform. This shift means that hosts need to:

• Enhance Amenities: Stand out with unique features like hot tubs, fire pits, or custom-designed spaces.

• Create Memorable Experiences: Embrace thematic designs that resonate with guests, such as Nordic spas or nature-inspired aesthetics.

By aligning with Airbnb’s direction, you can attract premium guests willing to pay higher rates.

The Game-Changer: Adding a Hot Tub

A pivotal moment for Michael and Katrina came when they discovered an AirDNA infographic showing the average daily rate (ADR) of properties with and without a hot tub in Canada. The results were staggering:

• Properties with a hot tub nearly doubled their ADR compared to those without.

Their Approach

1. Start Small: They tested the concept on one property to assess the impact.

2. Make Smart Investments: Installing a hot tub and enhancing the backyard aesthetics resulted in a dramatic revenue boost.

Case Study: Transforming a Property

Michael and Katrina revamped a property they owned, previously a modest space with basic amenities. Here’s how they transformed it:

Before:

• A simple backyard with minimal decor.

• Basic furnishings and a plain design.

After:

1. Added a Hot Tub: The centerpiece of their backyard redesign.

2. Elevated Design:

   • Installed a fire pit and canopy.

   • Commissioned a custom mural by a local artist.

   • Styled the property with a Nordic spa theme, featuring minimalist, nature-inspired decor.

3. Improved Amenities: Upgraded beds, lighting, and feature walls for a cohesive look.

Results:
The property saw a 30% revenue increase within four months. Notably, it thrived during the slow season, tripling November’s revenue compared to the previous year.

Breaking Down the Numbers

Here’s a snapshot of their revenue growth after implementing the hot tub and design enhancements:

• August: $6,300 in 2023 to $8,900 in 2024 (41% increase).

• September: $5,500* in 2023 to $4,000 in 2024 (downtime for renovations impacted revenue).

• October: $6,000 in 2023 to $6,700 in 2024 (10% increase).

• November: $1,500 in 2023 to $5,500 in 2024 (267% increase).

*September revenue dipped due to property downtime during renovations.

Key Takeaways for Hosts

If you’re looking to boost your short-term rental revenue, here’s what you can learn from Michael and Katrina:

1. Invest in High-Impact Amenities: Features like hot tubs can drastically increase your ADR and attract premium guests.

2. Enhance Guest Experience: Design matters—create a cohesive theme that elevates the space and sets your property apart.

3. Leverage Data: Use tools like AirDNA to identify trends and optimize your offerings.

4. Think Long-Term: Reinvesting in your properties can yield significant returns over time.

Start Your Own Short-Term Rental Business

Interested in starting your own short-term rental business without owning property? STR Wealth Academy offers a free 45-minute masterclass that covers:

• How to begin with minimal funds.

• Strategies to scale your business to replace a full-time income.

• Tips for avoiding common pitfalls.

Click the link in their description to access the free masterclass and kickstart your journey.

Final Thoughts

The short-term rental industry is constantly evolving, and staying ahead requires innovation and adaptability. Whether you’re just starting or looking to optimize your existing portfolio, focusing on high-impact changes like adding amenities and enhancing design can make all the difference. By following the strategies shared by Michael and Katrina, you’ll be well on your way to creating a profitable, low-stress short-term rental business.

Don’t forget to subscribe to STR Wealth Academy for more tips and insights, and leave a comment to share your thoughts on these strategies!