Purpose-Built Short-Term Rentals: How Property Managers Can Drive More Revenue for Their Owners

Mark Lumpkin
7/6/2026

The short-term rental industry has changed. What worked in 2020 and 2021 simply doesn’t cut it anymore. Demand has normalized, supply has increased, and competition is stronger than ever. We’ve officially entered what I call the “amenities arms race,” where the properties that win are not accidental. They are intentional. They are strategic. They are purpose-built.

And for property managers, this shift presents a massive opportunity.

Because the truth is, you are not just managing homes. You are the trusted advisor to your owners. They rely on you to tell them how to compete, where to invest, and what it takes to win in your market. And when your properties perform better, you benefit directly. Higher-performing homes generate more revenue, which means higher management fees, happier owners, and more opportunities for portfolio growth.

So, the question becomes: How do you guide your owners to build properties that actually perform in today’s market?

It comes down to three core pillars: the market, the property, and the guest avatar.

Start with the Market

Every high-performing short-term rental begins with a deep understanding of the market it operates in.

Not all markets are created equal, and what works in one location will fail in another. A mountain property has completely different expectations than a beachfront home. A Scottsdale group house operates differently than a quiet couples retreat.

As a property manager, you already have the advantage. You know your market better than anyone. You understand the seasonality, the demand patterns, and the types of guests coming in. The key is using that knowledge to guide your owners toward better decisions.

Look closely at your top-performing properties. What amenities do they have? How are they designed? What kind of guests are they attracting? At the same time, identify gaps in your market. Where is there an opportunity to stand out?

Amenities are no longer optional. They are the cost of entry.

In mountain markets, features like hot tubs and barrel saunas can drive tens of thousands of dollars in additional annual revenue. In high-demand group markets like Scottsdale or parts of Florida, adding something like a pickleball court or a resort-style outdoor setup can push a property into the top tier of performers.

If your competitors have it, you need it. And if you want to win, you need to go beyond it.

Most property managers already know this. The challenge is not awareness. The challenge is communication. You have to be willing to sit down with your owners and clearly explain that the market has changed. If they want to stay competitive, they need to reinvest.

This is where having the right partners and resources matters. Whether it’s construction, design, or financing, giving your owners a clear path to execution makes all the difference. When improvements can be funded by the additional revenue they generate, it becomes a much easier decision.

Maximize the Property You Have

Once you understand the market, the next step is evaluating the property itself.

Every piece of real estate is unique, and that’s one of the most powerful aspects of this business. There is no one-size-fits-all approach. Instead, the goal is to identify what makes a specific property special and build around it.

Some homes have incredible views. Others have large lots with room to expand. Some have layouts that allow for additional bedrooms or flexible spaces. The key is to lean into those advantages and turn them into experiences.

If a property has a great deck and a view, that shouldn’t just be a feature. It should be a focal point. It should be staged, photographed, and designed in a way that sells a moment. Morning coffee overlooking a mountain range or sunset drinks by the water are the types of experiences guests remember and book for.

At the same time, look for opportunities to create what your competitors can’t. A larger lot might allow for added amenities like outdoor entertainment areas, game spaces, or multiple gathering zones. Extra square footage might give you the chance to add a bedroom, a bunk room, or a converted garage space, increasing your total occupancy.

And that matters more than most people realize.

Increasing how many guests a property can accommodate has a direct impact on revenue. Going from sleeping eight guests to 12 is not just a small upgrade. It can significantly increase nightly rates, booking appeal, and overall performance.

One of the biggest challenges in this process is helping owners move past their personal preferences. Many owners design their properties based on how they would use them, not how the market demands they perform.

But if this is an investment, the decisions need to be driven by data, not personal taste.

It may not matter whether an owner would personally want to sleep 12 people in a home. If the market supports it and it drives more revenue, it is the right move. As a property manager, your role is to guide that conversation and keep the focus on performance.

Design for the Guest Avatar

Once the market and property are dialed in, the final and most important piece is the guest avatar. Who is this property actually for?

This is where many listings fall short. They try to appeal to everyone, and as a result, they don’t strongly connect with anyone.

The best-performing short-term rentals are designed with a very specific guest in mind.

If your target is families traveling with young kids, your goal is to make their stay as easy and stress-free as possible. That means providing practical items like pack and plays, high chairs, toys, and books. It also means creating a safe and functional environment where parents can relax. These guests are not looking for flashy design. They are looking for convenience and comfort.

On the other hand, if your guest avatar is group travel or bachelorette parties, the focus shifts entirely. These guests want an experience. They are looking for fun, energy, and spaces that are memorable and shareable. That might mean bold design choices, photo-worthy moments, and open areas where people can gather and get ready together.

For couples, the approach changes again. Now you are designing for intimacy and escape. Smaller-scale amenities like private hot tubs, saunas, or cozy indoor spaces become the focus. The design should feel calming, elevated, and intentional. It is less about excitement and more about creating a retreat.

The key is focus.

There is a well-known principle in marketing that says if you try to speak to everyone, you end up speaking to no one. The same is true in short-term rentals. When you design a property specifically for one type of guest and do it exceptionally well, everything improves. Your listing becomes clearer, your marketing becomes stronger, and your bookings become more consistent.

The Bigger Opportunity

The purpose of this approach is not just to improve individual properties. It is to change how property managers think about growth.

The goal is not to manage more homes. The goal is to manage better ones.

You are far better off with a smaller portfolio of high-performing properties than a larger portfolio of underperforming ones. High-performing homes create better experiences for guests, better returns for owners, and ultimately more revenue for you.

They also lead to stronger relationships. Owners who see results are more likely to reinvest, expand, and stay with you long term. That is how you build a sustainable and scalable business in this industry.

Final Thoughts

The short-term vacation rental landscape is more competitive than ever, and the properties that succeed today are not left to chance. They are intentionally designed around the market, the asset, and the guest.

Purpose-built short-term rentals are no longer a luxury. They are the standard.

As a property manager, you are in the best position to lead this shift. You understand the market. You have the trust of your owners. And you have the ability to guide better decisions.

The operators who embrace this will not only keep up with the industry. They will outperform it.

Because at the end of the day, the difference between an average property and a top performer is not luck. It is strategy.

If you are looking to take your portfolio to the next level or want help identifying opportunities within your properties, I would love to connect. I will also be speaking at this year’s VRMA conference and hope to see you there.

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