Short Term Rental Trends

South Dakota 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 South Dakota

Market Overview

The vacation rental market in South Dakota is characterized by several key trends and challenges:

Key Locations

  • The Black Hills and Rapid City: These areas remain popular due to their proximity to iconic landmarks like Mount Rushmore and the historic town of Deadwood. Cities such as Custer, Lead, and Sturgis offer a range of rental options, including log cabins and modern homes.
  • Other Notable Areas: Sioux Falls and Yankton also attract visitors with their urban conveniences and nearby attractions like Falls Park and Lewis and Clark Lake.

Performance Metrics

  • Occupancy Rates: While national trends show a decline in occupancy rates, with August 2024 calendar occupancy being 2% lower than in 2023 and 5% lower than in 2022, the late fall season in South Dakota is pacing better. However, specific data for South Dakota mirrors national trends, with occupancy rates generally lower due to increasing supply and softening demand.
  • Rental Income and Returns: Cities like Rapid City offer lucrative opportunities for short-term rentals, with high Airbnb daily rates ($177) and cash on cash returns (5.7%), despite some regulatory challenges.
  • Seasonal Fluctuations: The market is heavily influenced by seasonal demand, with peak seasons offering higher profitability due to the ability to charge premium rates, especially in tourism hotspots.

Regulatory and Operational Considerations

  • Local Regulations: Investors need to be aware of varying local regulations, particularly in cities like Sturgis, where property owners are limited to renting out properties for short-term guests up to 14 days per year to avoid additional taxes.
  • Platform Dominance: Airbnb and VRBO dominate the booking landscape, with local platforms also playing a role.

Amenities and Preferences

  • Sought-After Amenities: Travelers often look for rentals with amenities such as hot tubs, Wi-Fi, and proximity to natural attractions. Unique experiences, like outdoor seating or seclusion in nature, are particularly popular.

Future Outlook

  • Growth Prospects: Despite current declines in occupancy rates, the vacation rental market is expected to grow, driven by the thriving tourism industry and the increasing popularity of vacation rentals. However, growth is anticipated to be slower than in previous years.

Overall, while the vacation rental market in South Dakota faces challenges related to occupancy rates and regulatory compliance, it remains a promising sector for investors, especially in areas with high tourist demand.

Current Airbnb & VRBO Trends by City

No state available.

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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.