How to Conduct Market Research to Find Your Ideal Rental Demographic

For short-term rental property managers, understanding your ideal rental demographic is essential to maximizing occupancy rates, optimizing pricing strategies, and creating a guest experience that meets market demands. The key to achieving this is market research—analyzing local trends, guest preferences, and competitor data to ensure your rental property appeals to the right audience.

By conducting thorough market research, property owners can gain insights into who is most likely to book their rentals, what amenities they expect, and how to market effectively to them. In this guide, we’ll walk you through how to conduct market research to identify and attract the perfect rental demographic for your short-term vacation rental business.

Why Market Research Matters for Short-Term Rentals

Effective market research helps short-term rental managers:

• Understand guest preferences – What amenities and features matter most to your target renters?
• Optimize pricing strategies – How can you adjust rental rates based on demand and seasonality?
• Reduce vacancy rates – Which marketing strategies work best for attracting long-term and repeat guests?
• Stay competitive – What are other successful short-term rentals in your area doing right?

Skipping market research can lead to overpricing, underpricing, or failing to meet guest expectations, ultimately impacting revenue and occupancy.

Step 1: Define Your Rental Market

Before identifying your rental demographic, start by defining your overall market. This includes analyzing:

Location-Specific Demand

• Is your property in a tourist-heavy area, a business hub, or a residential neighborhood?
• Does your location experience seasonal fluctuations in demand?

For example, beachfront rentals may attract families and vacationers in the summer, while city apartments may cater to business travelers year-round.

Rental Type & Features

• Are you offering a luxury rental, budget-friendly stay, or a unique vacation experience?
• Does your property cater to large groups, solo travelers, or couples?

Your rental type will influence the target demographic you attract.

Step 2: Identify Your Ideal Rental Demographic

Understanding who your renters are is crucial for pricing, marketing, and property upgrades. Consider the following factors:

Traveler Types & Preferences

Different demographics look for different rental features:

Guest Type	Key Preferences
Families	Spacious layouts, kid-friendly amenities, full kitchens
Business Travelers	High-speed Wi-Fi, workspaces, proximity to business districts
Couples	Romantic settings, private amenities, scenic views
Digital Nomads	Long-term discounts, reliable internet, comfortable workspaces
Luxury Travelers	High-end finishes, concierge services, unique experiences
Budget Travelers	Affordable rates, essential amenities, good location

Booking Behavior

Look at past booking trends to identify patterns:

• Are most of your guests domestic or international travelers?
• Do they book last-minute or plan months in advance?
• What’s the average length of stay?

For instance, vacationers tend to book in advance, while business travelers often book last-minute stays.

Step 3: Analyze Competitor Listings

Studying competitor properties provides valuable insights into market trends and pricing strategies.

Research Local Short-Term Rentals

• Search on platforms like Airbnb, Vrbo, and Booking.com
• Look at top-performing properties in your area
• Analyze their pricing, reviews, and amenities

Compare Occupancy Rates

Use tools like AirDNA or Mashvisor to check:

• Average nightly rates in your area
• Seasonal demand fluctuations
• Guest reviews to understand pain points and preferences

Identify Competitive Differentiators

What unique features set high-performing rentals apart? It could be:

• A themed rental (e.g., pet-friendly, eco-friendly, luxury)
• Exclusive amenities (e.g., hot tub, rooftop deck, smart home features)
• Exceptional customer service and high ratings

Use this information to refine your rental strategy and offer something that stands out.

Step 4: Use Data to Refine Your Target Audience

Once you’ve gathered research, use data-driven insights to fine-tune your rental marketing strategy.

Track Demographic Insights

Use Google Analytics, Airbnb Insights, and social media metrics to gather:

• Age groups and locations of your past guests
• Booking habits (weekends vs. weekdays, short-term vs. extended stays)
• Guest preferences based on reviews and inquiries

Conduct Surveys & Feedback Collection

Send post-stay surveys to past guests, asking:

• What they liked about their stay
• What could be improved
• Why they chose your rental over others

This direct customer feedback helps shape future improvements.

Monitor Local Tourism & Events

Keep track of major events, festivals, or business conferences that drive rental demand. Adjust pricing and promotions accordingly to attract event-goers.

Step 5: Optimize Your Marketing Strategy

Once you’ve identified your ideal rental demographic, tailor your marketing efforts to reach them effectively.

Create Targeted Listings

• Highlight amenities and features that appeal to your demographic
• Use SEO-optimized descriptions with relevant keywords
• Include high-quality images and virtual tours

Leverage Social Media & Paid Ads

• Promote your rental on Instagram, Facebook, and TikTok
• Run location-based ads targeting your ideal guests
• Share guest testimonials and user-generated content

Implement Dynamic Pricing

• Adjust rates based on demand, seasonality, and competitor pricing
• Offer discounts for longer stays to attract digital nomads and business travelers

Improve Guest Screening & Security

Understanding your rental demographic helps you screen guests more effectively. Partnering with a guest verification service like Safely ensures trustworthy bookings while reducing risks.

Conducting market research is essential for identifying your ideal rental demographic and optimizing your short-term rental strategy. By analyzing local demand, traveler preferences, competitor trends, and booking data, property managers can attract the right guests, set competitive pricing, reduce vacancy rates, and enhance the guest experience. 

At Safely, we provide expert guest screening and short-term rental insurance solutions to help property managers protect their investments and maximize profits. Explore Safely’s solutions today to safeguard your rental business.