August 18, 2025 | 3 Minute Read
When we launched our first Airbnb in Birmingham, Alabama back in early 2022, I had a realization: Birmingham isn’t a vacation market—it’s a necessity market.
What do I mean by that?
Travelers don’t come here to sip piña coladas on the beach. They come because they need to—for work, family, or another reason.
That understanding shaped everything about how I built my short-term rental business. But it took me a couple of years (and some painful slow seasons) to figure out how to make it profitable year-round.
The Two Big Unknowns at the Start
When we first started hosting, I had two big questions:
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What kind of guests would we attract?
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Would we have a “slow season”?
After nearly four years and mountains of booking data, I’ve learned our guests fall into three categories:
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Families – weddings, graduations, reunions, birthdays, and funerals
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Business travelers – remote workers, corporate project teams
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Displaced locals – displaced local homeowners suffering damages to their properties working through insurance companies contracting relocation housing companies for extended stays.
At the beginning, most of our bookings were family-related. Weekends were gold mines, weekdays… not so much. We aimed for 50% monthly occupancy and hit it mostly by charging higher nightly rates (the market was far less saturated than today).
But then came my first real slow season.
My Harsh Lesson on the Slow Season
Spring and summer 2022 were great—we hit our revenue goals and occupancy looked solid. Then August hit. Families stopped traveling, kids went back to school, and bookings dipped hard.
Fall picked up again… but winter was brutal. We dropped to 25–30% occupancy, barely breaking even some months.
Here’s what the seasonal pattern looked like after year one:
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Jan–Mar: 25–30% occupancy
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Apr–Jul: 55–70% occupancy
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Aug–Sep: ~50% occupancy
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Oct–Nov: ~55% occupancy
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Dec: 25–30% occupancy
Eight months of the year we were fine, four months we were limping along. And for two years straight, I dreaded the slow season because I didn’t know how to fix it.
The Turning Point: Shifting to Mid-Term Rentals
By 2024, I knew something had to change. That’s when I doubled down on two types of guests: business travelers and displaced homeowners.
In other words—mid-term stays (28+ days).
Here’s exactly what I did:
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Built a direct booking website using Bookl.ee.
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Added QR code signs inside each property so guests could book future stays directly (12% of our bookings now come this way and our goal is to get to 20%).
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Just last week, we received a direct booking for 24 nights for $3590. The guest was referred by his company who previously had workers staying at this property. They made note of the QR code to book directly.
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Focused on guest experience—we average 10% returning guests yearly vs. the industry average of 3%. Some guests will only book our properties increasing loyalty and brand comfort.
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Lowered nightly rates —We reduced nightly rates to attract more business travelers, and the results spoke for themselves. Lower rates with higher occupancy ultimately meant higher profits. I’d much rather earn $120 per night at full occupancy for 30 days ($3600) than charge $160 a night at 50% occupancy ($2400). The lower nightly rates also helps us rank higher in search results resulting in greater visibility and bookings.
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Partnered with relocation services that insurance companies use for displaced homeowners. These guests often stay 3–9 months at $5,000–$8,000 per month.
The Results: From Empty Calendars to 100% Occupancy
By November 2024, the results were undeniable.
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60% of our properties were booked with mid-term stays through March 2025.
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Our blended occupancy averaged 53%, even in the slowest months, thus allowing us to achieve our minimum targets and stay profitable..
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Expenses dropped too—fewer turnovers, fewer cleanings, fewer supply runs.
Fast forward to today:
This August—historically a 50% occupancy month—we’re sitting at 100% occupancy across 7 of our 8 properties.
Here’s a snapshot:
The Argonne – Displaced homeowner, 56 nights
The Bungalow – Corporate booking, 38 nights
The Chalet – Displaced homeowner, 71 nights
The Hilltop* – Negotiating with relocation company for 3–6 months direct booking at $4,465/month with guests arriving August 24.
The Redmont – Corporate booking, 26 nights (likely extending)
The Reed* – Direct booking, 24 nights (may extend another month)
The Roebuck – Displaced homeowner, 49 nights
The Vista – Corporate booking, 23 nights (looking to extend)
* The grayed out / days indicates a booking with VRBO or direct booking.
Switching focus from short-term stays to mid-term rentals has been the game changer. Instead of dreading the slow season, I now look forward to filling my calendar with longer, higher-paying stays.
If you’re in a necessity market like me, here’s the truth:
Short-term guests help fill your weekends and pay the bills.
But mid-term guests make you profitable.