Fluctuating like seasons, occupancy can be difficult to pinpoint or predict. Add in all of the new developments happening in Minneapolis, and guessing becomes even more difficult. So what exactly is it?
Long term vs short term
The average vacancy rate in the 7 county metro area is at a record low of just 2.3% while Minneapolis stands at a 5% vacancy. (Star Tribune 2019) That translates to the average occupancy of a Minneapolis apartment is 95%. But how can owners fill in the gaps?
Many are turning to listing their apartments on online travel agencies (OTAs) such as Airbnb and HomeAway. Although the occupancy rate for short term rentals is naturally more volatile, combining both long and short term rentals can be extremely advantageous. In doing so, owners are enabled to capture multiple markets that otherwise would not be possible with longer-term leases alone! This includes event attendees, business travelers, and even tenants who only need a place for a month – not 6.
What is short term occupancy and how can you increase it?
Now that the value of short term rentals has been demonstrated, the question must be asked: What is the occupancy rate in Minneapolis and how can you make the most of it? The downtown market has remained relatively stable in the growth department for the last 2 years with an average of 3,500 active rentals at a 63% occupancy rate. Although 63% is a beneficial amount of business, there are ways to further improve such as implementing smart home technology, listing on multiple platforms, automating communication, and more.
To read up on optimization strategy, check out some of these blogs:
Special Events & Factors
One additional thing to consider is events happening in/around Minneapolis and any other factors that may benefit your short term apartment rental. As an extreme example, when the Superbowl came to US Bank Stadium active rentals in Minneapolis increased by over double bringing the total rentals to 7,077! Events such as the Superbowl are a prime example of occupancy increasing events as well as special occasions in which you can raise your nightly rates.
But what if the Superbowl doesn’t come to Minneapolis every year? Unfortunately, it doesn’t, so here are some other events and occasions to put into your calendar:
January 1 – New Years
1st Weekend in February – City of Lakes Loppet
February 14 – Valentines day
June – Pride Festival
July 22-25 Aquatennial
1st Weekend in August – Loring Park Art Festival
August 27- September 7 MN State Fair
1st Weekend in October – Twin Cities Marathon
Weekends in December – Holidazzle
December 31 – New Years Eve
Year-Round – Concerts