Short Term Rental Trends

Michigan Airbnbs & STRs

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RedAwning offers vacation rental property management for busy vacation rental owners and Airbnb hosts. Starts at 10% of revenue.
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Current Vacation Rental Performance in Michigan

Occupancy and Demand

  • The vacation rental market in Michigan, like the broader U.S. market, has experienced a decline in occupancy rates. In August 2024, calendar occupancy was 2% lower than in 2023 and 5% lower than in 2022, primarily due to an increase in supply outpacing demand growth.
  • However, there is a positive outlook for the late fall season, with October and November occupancy rates pacing ahead of last year, suggesting a return to pre-pandemic trends.

Rates and Revenue

  • Average daily rates (ADR) have been relatively stable, with a slight increase of $3 in August 2024 compared to the previous year. Despite this, revenue per available room (RevPAR) has declined due to lower occupancy rates.
  • For the Midwest region, which includes Michigan, rates have seen a modest increase, with a 6% rise in Q2 2024 compared to the previous year.

Market Trends and Outlook

  • The market is expected to stabilize as the oversupply of vacation rentals begins to correct. Many inexperienced investors who entered the market are likely to sell or face foreclosure, which should help improve occupancy and rates for professionally managed vacation rentals.
  • There is cautious optimism for 2024, with a focus on innovative marketing strategies, use of market data, and proactive revenue management to capture more bookings and increase owners' income.

Regional Performance

  • Northern Michigan, in particular, is seeing positive trends. The area is attracting affluent enthusiasts with its high-end luxury properties and unique recreational opportunities. Real estate prices in Northern Michigan are up 10-20% over the past two years, and the market is expected to continue appreciating due to fixed supply and increasing demand.

Specific Highlights

  • A lakefront home in Sand Lake, Michigan, was ranked among the top U.S. vacation rentals of 2024 by Vrbo, highlighting the appeal of Michigan's vacation rental market.
  • Holiday Vacation Rentals (HVR) in Northern Michigan is enhancing its services through improved property management systems, enhanced marketing, and customer loyalty programs to better serve both homeowners and renters.

Current Airbnb & VRBO Trends by City

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FAQ

What does your pricing structure look like?
Our prices start at 10% of revenue. You can check out our pricing page for more information.
What types of vacation rental properties do you manage?
We manage a wide range of vacation rental properties, including single-family homes, condos, apartments, and luxury villas. Our services are tailored to meet the unique needs of each property type.
How do you handle guest support?
Our team provides 24/7 guest support, handling all inquiries, booking assistance, and any issues that may arise during a guest's stay. This ensures a seamless experience for your guests.
What is included in your damage waiver?
Our damage waiver provides $3,000 in coverage per booking, protecting you from accidental damages without the need for security deposits. This coverage is automatically included with every booking.
How does the payment process work?
We handle all aspects of the payment process, including processing payments, managing declined cards, and providing chargeback protection. Funds are deposited directly into your account, ensuring a smooth and secure transaction.
Can I still use my own booking website?
Absolutely! We offer a direct booking website service that allows you to showcase your property and accept bookings directly, bypassing the fees charged by major booking sites.
How do I get started with RedAwning?
Getting started is easy! Simply contact us for a free consultation, and our team will guide you through the onboarding process to ensure a smooth transition to our platform.
Why is RedAwning better than other property management companies?
RedAwning sets itself apart from other property management companies with a technology-driven, cost-effective approach that offers both full-service and partial management options, catering to vacation rental owners who value flexibility and control. Unlike competitors like Vacasa or AvantStay, which focus solely on full-service management with fees ranging from 25-50% of income, RedAwning provides a choice: comprehensive oversight including marketing, reservations, guest support, and maintenance, or a partial-service model emphasizing marketing and bookings across 50+ platforms like Airbnb, Vrbo, and Booking.com, potentially increasing bookings compared to narrower-channel options like Evolve. RedAwning's fees start at 10%. Having served the industry for 15 years, RedAwning combines experience with lower fees and rapid onboarding—listing properties in an afternoon—appealing to hosts who want efficiency without losing decision-making power, though it may not suit those needing extensive local support like Vacasa provides. Its scale (20,000+ properties across 10,000 destinations) and data-driven pricing give it an edge over Evolve’s simpler approach, making it a versatile choice for tech-savvy hosts seeking tailored management solutions.