Vacation Rental Owner in the Outer Banks? Here are Tips to Stand Out in a Highly Competitive Destination

As Outer Banks property managers, we know just how crucial it is to monitor industry trends. Keeping an eye on market data empowers rental owners to make better decisions and attract more bookings.

There are quite a few solutions for global insights available, and they can provide you with some useful information on things like pricing trends, demand fluctuations, and a myriad of other factors that affect your business.

If you’re interested in those, we suggest you take a look at the industry leaders: AirDNA, Beyond Pricing, Hostfully, and AllTheRooms Analytics.

Based on the data these platforms gather, our short-term rental market was valued at a whopping $115 billion in 2020, and this figure is expected to increase by a few more billion in the years to come, with an annual growth rate of 6.9%.

It’s easy to get lost and overwhelmed by the vast amount of information out there regarding the industry as a whole, but we must remember that we actually operate in the vacation beach home segment of the industry, and precisely on Outer Banks, NC.

These details matter for reading the relevant market insights. After all, a lot of the data and information out there doesn’t apply to us.

Outer Banks rental industry trends that (really) matter

What about trying something new and diving into some recent info that really applies to our region and segment?

Let’s dive into it.

• Size does play a role. Research tells us that those who choose vacation rentals over hotels are looking for more space and privacy. The average hotel room is only about 325 square feet, while some of our beach houses can span over 1,300 square feet. That’s all the privacy you need!
• Your guests are aspiring master chefs. A nice kitchen is another reason why people choose vacation rentals. Studies show that roughly 60% of short-term renters really evaluate the kitchen before making a call. In the Outer Banks, they want a suitable space to cook and dine with friends and family — good thing our homes have fantastic kitchens!
• Mother nature’s escape. Nature destinations are growing more popular by the day. That’s our niche! The Outer Banks boasts plenty of natural attractions and wildlife, making it the perfect destination for families seeking a break from the hustle and bustle of city life.
• Modern hospitality. Gone are the days of easily satisfied guests. Today, travelers have higher expectations. It’s essential to understand the needs and preferences of modern travelers, not only Millennials but also Generation Z, who are often more financially conscious and environmentally aware than other generations.
• Where’s hot right now in OBX? Every property manager in the Outer Banks knows that oceanfront properties are always winners. Still, to be more specific, substantial growth and construction are taking place on the Northern Beaches of Corolla, NC, while renovations and upgrades are giving a significant boost to homes in Nags Head, NC.

In the OBX, revenues are returning to normal but competition is high

After the strange few years that we just went through, rental demand in the OBX is returning to normality, which means things are looking a lot more like we were used to before the pandemic.

This also means that this is the time to refocus on making your beach rental stand out and attract both first-timers and recurrent guests.

This last piece of advice is largely due to an increase in competition. In short-term rentals as a whole, there’s an increase in inventory.

This is really the time to double your efforts not only on outstanding decor but also amenities and on consistently delivering a great experience to your guests — more on all that later.

There are several significant aspects to consider. However, before we explore those aspects further, let’s gain a deeper understanding of something…

Why do people look for private vacation homes in the Outer Banks?

Vacation rentals near nature have gained immense popularity among travelers seeking unique experiences. The Outer Banks in North Carolina is renowned for its enchanting beach, quiet seaside allure, plenty of water sports, and historical exploration.

Whether rentals are nestled steps away from the beach, come with a private boat slip, or are within a golf community, they cater to a wide range of preferences and desires.

Our beach houses evoke the dream vacation getaway, inspiring fantasies of stunning ocean views and the allure of pristine shores. Whether it’s a cozy bungalow or a grand beachfront estate that accommodates twenty guests, the modern vacationer seeks a memorable experience.

Give your rental a modern, Instagram-worthy decor

While scenic sea views and pristine white sands are certainly appealing, your interior decor is an important selling point.

Beach vacationers crave that coastal-nautical charm that homes in OBX are famous for, so it’s always a good idea to keep the interiors aligned with that dream. As we’ve previously mentioned, incorporating updates into your beachfront property will elevate the overall guest experience and increase its appeal.

Guest preferences can vary depending on the size and location of the home. For instance, a spacious 12-bedroom oceanfront luxury home should offer upscale amenities and understated coastal elegance, while a 3-bedroom soundfront beach house may be best suited with more prominent nautical decor.

When designing your beach rental, there are several key factors to consider. Here are some of them:

Furniture mix

To create a modern environment, choose furniture without excessive embellishments or ornaments, and pick the ones that are aligned with a specific style. For example, opt for sofas and armchairs with slim legs and textured, solid-colored, or subtly patterned fabrics. These choices will certainly introduce an element of airiness to the decor.