7 Reasons Vacation Rentals Will Be Big This Year

The pandemic threw vacation rental property investors for quite a loop. Many people felt safer staying home as much as possible, and in some locations, travel restrictions took the option off the table for a while. But travelers are ready to get back out there now, and real estate investors can benefit. Here are a few factors making vacation rentals red hot this year.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Many who could do their jobs remotely were allowed to do so during the pandemic. And several companies even announced that their employees would be allowed to work from home indefinitely going forward, or at least to work some sort of hybrid arrangement that would allow for more remote workdays.

That has created much more flexibility for travel than most people had before, which is great news for vacation rental investors. It also means providing a nice office space for those digital nomads to work in during their stay is more important than ever.

ALSO READ: Working Remotely: Is this the Future of the Workforce?

Having so many people working remotely means more companies hosting work retreats, especially if pandemic restrictions continue being lifted. An increasing number of companies have been placing serious emphasis on company culture for many years now, and they're unlikely to change their minds about that because of remote work.

If anything, the opportunity to bring employees together to bond in person at retreats will take on even more importance. Sure, they could go to a hotel. But if they want to create a memorable retreat, some smaller companies or teams will be looking for large estate properties to rent.

Of course, work retreats alone may not be enough to keep a large estate property booked. Fortunately, reunions and other family and friend gatherings are on the rise.

As families and friends who stayed apart during the height of the pandemic have made plans to come back together, many have done so at large vacation rental properties. This has given them the freedom to sit and visit together in living rooms and dining rooms in ways they simply can't in a hotel.

ALSO READ: 6 Potential Vacation Rental Problems: How to Prepare

Many stopped feeling comfortable in restaurants for a while and started cooking their own meals at home more than they had before. And some of them are likely to want to make at least some of their meals themselves when traveling for more than a couple of days.

Cooking favorite meals for each other in the evenings can also be a great way for friends, family members, and even coworkers to bond. This is yet another reason vacation rental properties will win out over hotels. Hosts will want to make sure their guests have not only dishes and utensils for dining but also some basic cookware like pots, pans, and spatulas.

Whether staying in the childhood home of a celebrity, an allegedly haunted house, some sort of themed property, or even on a farm, today's travelers are increasingly searching for opportunities to experience something unique.

This is such a hot trend that Airbnb has even added unique properties to the list of things travelers can check off when searching for their perfect stay. So, it may be worth looking for a property that offers something truly special -- in addition to a nice place to stay.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Many people got their fill of the indoors at the height of the pandemic. Working, exercising, going to school, and doing everything else inside took its toll. This has led to a renewed interest in everything from hiking, biking, and boating to outdoor dining and shopping.

Many vacation rental properties offer more opportunities to enjoy the outdoors than hotels. And hosts can take advantage of this by maximizing their outdoor space with everything from screen rooms and fire pits to solar string lights and grills.

ALSO READ: Why Open-Air Retail Is a Solid Investment

The desire to avoid being crammed together unnecessarily will continue to be with many people for a long time to come, regardless of what happens with the pandemic.

Coming together for fun activities may feel worthwhile, but sharing hotel lobbies, hallways, and especially elevators with strangers is likely to feel like a pointless risk to many. Many will continue to place a high value on having their own space to stay in going forward.

If you've been thinking of investing in a vacation rental property, now could be a great time. An increasing number of people are scheduling bookings for a wide variety of reasons, and they want to stay everywhere from the big city to big farms.

If you decide to go for it, keep the trends on this list in mind during your property search to make sure you're meeting travelers where they are right now. And of course, you can also consider investing in Airbnb if a rental property purchase is more than you want to take on right now.

Nell McPherson has no position in any of the stocks mentioned. The Motley Fool owns and recommends Airbnb, Inc. The Motley Fool has a disclosure policy.