ONLINE HOME RENTAL MARKET Challenges and Opportunities

There are many stringent regulations governing homeowners and landlords in the global online home rental market. Different countries and regions have their own set of laws and compliance norms surrounding aspects like safety standards, tax compliance, registration requirements etc. Keeping track of frequent changes in such regulations and ensuring adherence can be challenging for many homeowners and landlords. According to data from the UN Conference on Trade and Development, around 30% of potential hosts cite regulatory hurdles as a primary reason for not listing their properties on short-term rental platforms globally. This regulatory complexity adds an operational hurdle for both property owners as well as platform businesses trying to scale in this market on a global scale. However, many governments are now trying to streamline policies to promote sharing economy while maintaining basic tenant and community safety standards.

Market Opportunities - Emergence of shared economy and collaborative consumption

The rapid growth of shared economy and collaborative consumption business models have opened up opportunities in the global online home rental market. Young professionals and travelers today prefer experiences over possessions and are happy to access services like accommodation on a temporary needs basis. This has boosted demand for short-stay and medium-stay rental homes listed on online platforms. Many homeowners also find home sharing as a convenient option to earn additional income from their properties, especially during periods when they are not residing there. The shared economy model has increased overall utilization of under-used housing assets.