HOW SHORT-TERM RENTALS ARE CHANGING THE MARKET

BY JONATHAN OPITZ

1424 SoMa

As cities across Arkansas work to regulate short-term rentals, mostly due to their proliferation in singlefamily, residential-style neighborhoods, we thought it would be helpful to interview an expert. Samantha Stocks of 524 & Co., Inc., has extensive experience managing a variety of short-term rentals across our state. The goal of such projects is not to put additional strain on the housing market, but to create spaces for visitors and guests — along with local, long-term residents — that offer safe, high-quality experiences in desirable destinations.

How has the short-term rental market changed over the past two years? Stocks: It has drastically changed in a positive way. Renters want flexibility in case of sickness, job loss or any other unforeseen condition, and are willing to pay a higher rate not to be locked in to a long-term lease.

working more remotely now and need the flexibility to move around as needed. With short-term rentals, they have that. Like great neighborhoods in past decades, downtowns across the state tend to be more dynamic if they offer a variety of housing options.

Are there certain professions that seem to be more flexible and rent for shorter periods at a higher rate? Travel nursing is a large part of short-term rentals. They pay a higher rate, and they stay anywhere from 30 days to six months, depending on their contracts. The next highest user group would be the military, who constantly shift locations. We see these industries transitioning more toward short-term rentals for the flexibility and better connections to the vibrant urban areas where they prefer to engage outside of work hours.

Do you feel like millennials have shifted to a more nomadic lifestyle? People used to travel for fun; now that fun can be a part of day-to-day life with remote jobs. Have you experienced that with the units that you manage? Yes! As a millennial myself, I used to only travel for vacation. Now, I travel all the time. I see a lot of millennials engaging in consulting work, temporary work, relocation work, etc., and the flexibility of not having to break a one-year lease allows them to remain nomadic and try out different avenues of life. Much like trying on clothes you purchase online, you can keep trying until you get it right. Now a “right fit” doesn’t necessarily mean a forever job, as it did in past generations. It can be right for weeks, months or years at a time, and this can be extremely liberating.

What are the main drivers for mid-term rentals? Length of employment, flexibility of month-to-month leases, one- to three-month leases, the amenities of the property, the neighborhood the property is located in or the overall vibe and attractions of the city? To use the famous real estate phrase, location, location, location! The second biggest driver, as I mentioned, is flexibility — monthto-month, week-to-week or day-to-day options, as some are unaware of their time at/in a specific job/city. The third biggest driver is safety. They want the city life, but I am asked daily what safety and convenience features each property offers (gated parking, flexible check-in and check-out times, keypad entry, etc.) Also, 99.9% of the time they are looking for pet-friendly, furnished units. All they have to do is jump on a plane or in a car with their bags and their pets, and they are good to go.

If there were three things you could add to all your properties to help attract more short-term renters, what would they be? The three most asked about or requested items are: dog parks and other puppy-related services, gym/fitness facilities, and space in every unit for a dedicated home office area.

How do you see short-term rentals evolving in Arkansas? Do people mainly come for the larger cities, natural setting or a combination of the two? It is definitely a combination, evolving and growing each and every day. I am constantly seeing apartment complexes move to a little more “flex living” instead of 12-month leases. More professional occupations — such as freelancers or those in health care, the military or the government — are drawn toward the cities due to their connections to larger institutions. Then we have the “millennial nomads” who want to travel and stay a few weeks or months in the state’s natural settings and then move on to the next one. They “work to live” and generate income as a means to continue the adventure.