Publications
Publications
- March 2025
- HBS Case Collection
Boom, Bust, or Bullseye? Navigating the Short-Term Rental Market
By: John Macomber, Juan Pablo Heusser Killing, Siddhant Pardeshi and Sally Su
Abstract
Short-term rentals listed via apps like AirBnB and VRBO are increaslingly interesting investments for small scale real estate investors. However, they have substantial operating costs, vacancy risk, and regulatory exposure compared to traditional long term leases (usually for one year). Short term rentals are major asset classes in some vacation venues and very disliked by neighbors in other locations. Considering these conditions, a young self-made Chinese-American female entrepreneur must decide for her next acquisition whether to bid for and rent out as a short term rental or as a long term single family rental; and then must decide which one of three properties in Arizona, California, or Texas to purchase.
Keywords
Citation
Macomber, John, Juan Pablo Heusser Killing, Siddhant Pardeshi, and Sally Su. "Boom, Bust, or Bullseye? Navigating the Short-Term Rental Market." Harvard Business School Case 225-013, March 2025.