The short-term rental (STR) industry is entering a transformative era. Throughout 2025, several key STR trends in smart property automation are poised to reshape how property managers operate and enhance the guest experience. In a constantly evolving market, understanding these emerging shifts is essential for staying competitive.
Here, we summarize the top 5 STR trends that property managers should be aware of in 2025.
Adapting to Normalized Revenues
The pandemic created an unsustainable spike in STR revenues, and as the market normalizes, property managers are beginning to reassess their portfolios. Many are choosing to focus on quality over quantity, downsizing operations to more manageable levels. This shift allows for greater attention to the overall guest experience, offering an opportunity to optimize revenues. Smart property automation plays a vital role here with enhanced insight through tools like predictive maintenance systems and centralized property management software (PMS) allowing property managers to streamline operations while maintaining profitability despite smaller portfolios.
Shifting from Microtransactions to Guest-Centric Experiences
As competition intensifies and guest preferences shift, property managers and hosts are rethinking their approach to guest loyalty. Moving away from microtransactions such as charging for early check-ins or late check-outs, we are increasingly seeing these previously chargeable extras being offered as a free perk to encourage repeat bookings. Technology like smart locks and mobile-integrated controls make it easier for property managers to implement these experiences seamlessly. For example, a guest arriving early can be granted immediate access through a simple app notification, while personalized settings like pre-arranged room temperatures can elevate their stay by tailoring settings to their individual needs.
The Convergence of Multifamily and STR Models
The boundaries between STR properties and multifamily housing are becoming less defined. This blurring of lines requires adaptable strategies to effectively manage hybrid properties that cater to both long-term residents and short-term guests. For instance, smart access technology controls who has access to specific areas of buildings, meaning residents won’t have to worry about privacy issues from guests staying only for a few days. Similarly, shared amenities like pools or gyms benefit from technology that tracks usage and ensures smooth operations across varied occupant types.
Navigating Complex Legislation
Another STR trend is hyper-localized regulations that are creating challenges for STR managers with rules varying significantly across jurisdictions. Property managers must stay agile to remain compliant. Privacy concerns are a recurring theme, particularly around security technology. Devices like smart video doorbells offer a solution, providing external monitoring without infringing on guest privacy. Noise monitoring technology, which tracks sound levels without recording conversations, is another effective tool for maintaining compliance with local noise ordinances while protecting guest comfort.
Streamlining Tech Stacks for Efficiency
As the tech landscape for STR properties grows, the cost of managing multiple systems has become a concern. Consolidating technology into a single, cohesive platform is emerging as a cost-effective and efficient solution. Smart property automation systems now integrate multiple functionalities, from access control and energy management to security monitoring. Streamlining your tech stack not only reduces operational expenses but also simplifies property management by offering a unified interface.
Energy management remains a particularly critical area. With heating, ventilation, and air conditioning (HVAC) systems accounting for significant costs, smart thermostats and predictive maintenance tools have become essential. These technologies not only lower expenses but also support environmentally sustainable practices, aligning with guest preferences for eco-friendly accommodations.
As we move towards 2025, the changing STR landscape will demand a balance of innovation, efficiency, and adaptability. By leveraging the latest vacation rental technology, operators can not only navigate these STR trends but put themselves in the best position to set themselves up for success.
Want to find out more about short-term rental technology? Read Angel Piontek’s article in VRMA Arrival on the role that AI will play in short-term rentals.
