A growing "intermediate housing" market is emerging for those who do not fit into traditional travel or long-term residency categories. Short-term rentals, which offer fully furnished homes equipped with appliances for stays ranging from a week to several months, are becoming a new rental option that caters to diverse needs such as business trips, relocations, renovations, and month-long stays.
The key feature of short-term rentals is their focus on "living" rather than just "staying." Typically, rental agreements are made for periods longer than one week but shorter than one year, allowing tenants to live in fully furnished homes. Unlike hotels or lodging facilities that charge by the day, these rentals can be contracted on a weekly or monthly basis without the burden of large deposits or long-term commitments typical of standard leases.
Individuals needing to stay near hospitals, those seeking month-long accommodations, or people working remotely in specific areas can all benefit from short-term rentals. Recently, the demand has expanded to include foreign professionals, international students, and long-term travelers staying in the country.
According to a survey by Samsam M2, business trips account for 38% of short-term rental usage, followed by relocations and renovations at 24%, leisure travel at 23%, and academic or other purposes at 15%. Key demographics include business travelers from other regions or countries, individuals needing temporary housing due to mismatched moving dates, families vacating their homes during renovations, and those on training or internship assignments.
What sets short-term rentals apart from traditional lodging is their suitability for actual living. While most hotels and lodging facilities require guests to eat out, short-term rental properties typically come equipped with kitchens and laundry facilities. This allows them to meet the demand for spaces where individuals can reside for a certain period rather than just sleep.
For landlords, short-term rentals present a new opportunity. A survey by Samsam M2 found that 53% of providers have experience with traditional leases, while 24% have no prior lodging experience, and 9% are seasoned hoteliers. This indicates that non-traditional landlords are entering the short-term rental market.
One reason the short-term rental market has not fully developed is landlords' concerns about potential damage or property misuse by short-term tenants. Additionally, the brokerage industry has been hesitant to engage due to the limited profitability of short-term contracts compared to the time and effort involved.
The emergence of rental platforms is helping to fill this market gap. Samsam M2 enhances transaction security by settling rental payments with landlords after tenant check-ins and holding security deposits for safe return. The company also offers a "Samsam Care" service to alleviate landlords' concerns about damage and cleanliness, contributing to the growth of the short-term rental market. Other platforms, such as Live Anywhere and Jaritok, are also part of this sector.
However, there are concerns that the regulatory framework has not kept pace with market growth. The legal nature of short-term rentals can vary based on contract type and duration, making it difficult to categorize them like traditional leases. Particularly, rentals intended for temporary use may be excluded from reporting requirements, leading to potential gaps in tenant protections under housing laws.
Disputes can also arise during the rental process. Common issues include whether utilities and maintenance fees are included in the rent, cleaning fees upon departure, penalties for early termination, and conditions for the return of deposits. When using short-term rentals, it is crucial to carefully review the contract for terms regarding duration, costs, deposit return conditions, and liability for property damage. Additionally, accurately assessing the market size remains a challenge.
An industry insider noted, "Short-term rentals are not so much a replacement for existing lodging options but rather a market that fills the housing gap between hotels and long-term leases that has not been adequately addressed. There is potential for this to evolve into a new form of rental agreement beyond a simple niche market."
* This article has been translated by AI.
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