The rise of short-term rental sites has given seniors a new way to live that they didn’t expect. Contrary to what you might think, retirees have become the most popular hosts on sites like Airbnb. Renting out extra space helps older people make money, make new friends, and have more freedom in their lives. With the help of digital tools, older people are changing the way they run inns and, in the process, changing what retirement means.
The Rise of Short-Term Rentals and Senior Participation
The digital age has seen a surge in the popularity of short-term rentals, and seniors are leading the charge. They’ve become the fastest-growing demographic on platforms like Airbnb, with senior hosts raking in over $2 billion in 2017 alone. The percentage of Airbnb hosts over the age of 60 has grown steadily from just 9% in 2014 to 25% in 2018, highlighting the rising participation of seniors in the short-term rental marketplace. The following chart shows the percentage of Airbnb hosts who are 60 years or older from 2014 to 2018:
In the past few years, the hospitality business has changed quickly because of the sharing economy and online rental platforms. Sites like Airbnb, VRBO, and HomeAway have made it very easy for people to list and rent out their extra living areas to travelers and guests. This digitally driven market for short-term rentals has grown by leaps and bounds, and there are now millions of ads all over the world.
When short-term rentals first started, they were mostly used by tech-savvy millennials. Now, however, seniors are becoming more common as both hosts and guests. The number of new hosts on top rental sites who are 60 or older is growing the fastest. Thousands of seniors are taking advantage of this new chance by giving up their homes.
Some organizations assist senior citizens, one company capitalizing on this trend is Techvestor, which provides services to help senior citizens efficiently manage short-term rental income streams.
What makes short-term renters so popular with retirees and other older people? It seems to be caused by a mix of social, economic, and personal factors. Many seniors today are more independent, busy, and at ease with technology than their parents or grandparents were. And if you carefully check them out, short-term guests can be good company.
People with fixed incomes like the idea of making a little extra money by renting out a room or two. Seniors often have unused rooms, like empty nests or second homes, that they can now rent out and make money from. As people live longer, they are looking for ways to keep busy and make money well into their traditional retirement years. Short-term rentals make that possible.
Younger people helped the short-term rental market grow at first, but now older people are becoming a big part of it. Even though their wants and goals may be different, this digitally-driven trend is popular with people of all ages. But why is this happening? Seniors can get more out of short-term rentals than just money. There are other perks as well.
Benefits of Short-Term Rentals for Seniors
For seniors, short-term rentals unlock a trove of benefits that enhance well-being:
- Social Interactions: Hosting travelers allows seniors to meet new people from diverse backgrounds and cultures without having to travel themselves. The memorable conversations and connections foster a sense of fulfillment and purpose.
- Mental Stimulation: Interacting with guests, managing listings, and coordinating logistics keeps the mind sharp and engaged. The learning involved in navigating new technology platforms also keeps seniors mentally stimulated.
- Physical Activity: Preparing and maintaining property between rentals provides physical activity through cleaning, gardening, and managing logistics. This helps seniors stay active and mobile.
- Supplemental Income: The extra income from rentals provides financial stability and the ability to fund hobbies and experiences. This contributes to peace of mind and continued independence.
Real Estate Investments as a Retirement Strategy
Real estate stands apart as an investment vehicle for seniors in retirement:
- Inflation Hedge: Hard assets like property often appreciate over time, serving as a hedge against inflation-eroding retirement savings. This helps maintain purchasing power.
- Passive Income: Income from short-term rentals provides steady cash flow without active work, creating an ongoing revenue stream in retirement years.
- Diversification: Real estate diversifies portfolios beyond just stocks and bonds, mitigating risks of market volatility impacting retirement income.
- Low Maintenance: Turnkey short-term rental models minimize landlord responsibilities, enabling seniors to earn income passively without intensive property management.
With prudent research and planning, real estate investments can provide seniors with financial stability, portfolio growth, and peace of mind in their retirement.
Ensuring Wellness and Security in Short-Term Rentals
For many seniors, their home is their sanctuary. When opening it up to guests, ensuring a positive, safe experience for all parties involved becomes a top priority. Here are some tips for ensuring wellness and security in short-term rentals for seniors:
- Install smart home technology like motion sensors, video doorbells, and smart locks that can be watched and controlled from afar. This lets the senior host see and screen guests, lock and unlock doors, and get alerts if there are unexpected movements even when they’re not there in person.
- Choose carefully which rooms or parts of the house guests will be able to use. Some seniors may want to keep others from getting into their private areas or taking their valuables.
- Give guests clear directions and house rules about safety, security, and keeping the property in good shape. Tell people what you expect of them so there are no misunderstandings.
- Make sure your guests have a list of people they can call in case of an emergency. This list could include family members, friends, handymen, or the local police.
- If the senior host is going to be away while guests are staying, arrange for a trusted friend or family member to check in and take care of maintenance from time to time.
- Check out short-term rental sites that are known to be trustworthy and offer background checks, verified IDs, and safe payment handling to make sure guests are good. Check out reviews from past hosts to find out who might be in trouble.
- To stop one-time parties or other unapproved events, you might only let people stay if they book at least a few nights.
- Buy short-term rental insurance to protect yourself from theft or damage to your property caused by guests.
The key is to find a good balance between being open and being careful. When it works out, short-term renting can be a great way for older people to share their houses on their terms. The extra money also helps with money. But not at the cost of one’s normal schedule or personal space. Seniors can find the sweet spot if they take things slowly and learn as they go.
Where the benefits of making more money and making connections are worth giving up some privacy. Having people stay in your home for a short time doesn’t have to feel strange at all if you plan. When a senior’s wants are taken into account, short-term renting can feel like home. And bring both financial and social benefits without sacrificing comfort or freedom.
Conclusion
Short-term rentals have become a great choice for seniors who want to live more independently and actively. By joining the sharing economy, retirees can make money, meet new people, and keep their homes in good shape on their terms. Even though learning how to use new technology takes time, it has many benefits for seniors who want to live independently.
Instead of withdrawing into themselves, seniors today are breaking new ground. Short-term renting is a good example of this sense of change. By sharing their room and skills wisely, older people can make money, make friends, and have a flexible schedule. Seniors are not afraid of change at all. Instead, they are rushing into this new market with enthusiasm. Their wise guidance keeps shedding light on the way ahead.
Frequently Asked Questions
- How do short-term rentals differ from traditional senior living communities?
Short-term rentals offer more flexibility, often come with modern amenities, and do not require long-term commitments, unlike traditional senior living communities which may have extensive contracts and less freedom.
- Are short-term rentals a viable option for seniors with medical needs?
While many short-term rentals offer safety features, they may not provide specialized medical care. It’s essential to assess individual needs before choosing a rental. Those with intensive care requirements may be better served in a senior living community.
- How can seniors ensure the safety and authenticity of short-term rental properties?
Seniors can use reputable rental platforms, read reviews, have a direct video call with the host, and inspect the property virtually beforehand. Clear communication and due diligence are key to ensuring a safe and authentic rental.