KeyData Survey Shows 76.8% of Property Managers Expect Revenue Growth in 2027

More than three-quarters of short-term rental property managers, or 76.8%, expect revenue to grow in 2027, according to survey findings published by KeyData. The result indicates an operational shift toward expansion across the U.S. vacation rental sector after a period dominated by market stabilization.

In its 2027 Vacation Rental Industry Outlook, KeyData reported that 65.2% of surveyed operators expect occupancy to increase, while 55.5% expect average daily rate growth. The figures reflect rising operational optimism among professional lodging managers heading into the coming year, even as 64.2% of respondents expect competition for guest bookings to intensify.

What the data shows

The data released by KeyData outlines revenue, occupancy, and rate expectations for professional vacation rental managers across the United States. KeyData reported that 76.8% of respondents expect revenue to grow in 2027. Breaking down that revenue outlook, 60% of respondents anticipate modest growth, while 17% expect significant growth. Conversely, 19% of respondents expect revenue to remain relatively flat, and 3% anticipate a revenue decline.

Projections for core performance indicators align with positive revenue expectations. KeyData reported that 65.2% of surveyed property managers expect occupancy to increase in 2027. On pricing, 55.5% of respondents expect growth in average daily rates over the same period.

KeyData observed that these projections represent a distinct change from baseline sentiment recorded in the 2026 Outlook, when operator expectations centered more heavily around flat to modest growth. The shift toward higher expected revenue, occupancy, and daily rates in 2027 indicates that property managers are entering the upcoming year with expanded confidence in top-line growth. KeyData noted that despite this optimism, operators do not anticipate an easy operational environment, with findings pointing toward an industry confident in finding growth while navigating competitive and regulatory pressures.

How it was measured

KeyData compiled the 2027 Vacation Rental Industry Outlook from 392 responses submitted by professional property managers operating across the United States. The survey sample captured operators across a broad range of portfolio sizes, including management companies with fewer than 30 units as well as large operators managing portfolios of more than 500 units.

KeyData structured the survey to capture perspectives across different organizational functions within property management businesses. The report includes responses from Owners and Founders, Revenue Teams, Operations Teams, Marketing Teams, and other vacation rental professionals. According to KeyData, introducing role-based segmentation alongside portfolio-size breakdowns makes it possible to evaluate how strategies, expectations, and daily operations vary across distinct operational departments.

In addition to tracking market sentiment, KeyData expanded the survey scope to establish benchmark data covering property management business economics. For the first time, the Outlook survey included questions addressing rental revenue commissions, net revenue, housekeeping and maintenance revenue and expenses, W-2 employee counts, and department-level staffing allocations. KeyData established these new economic metrics to provide a consistent baseline for tracking business economics in future survey reports.

Competition and operator strategy

KeyData reported that nearly two-thirds of property managers, or 64.2%, expect competition for guests to increase in 2027. This finding includes 45% of respondents who anticipate a slight increase in guest competition and 19% who expect competition to increase significantly. Only 6% of surveyed operators believe guest competition will ease over the coming year.

To address rising market competition, property managers are preparing proactive operational strategies rather than waiting for market conditions to improve without intervention. KeyData identified several key functional areas that operators are prioritizing for 2027: guest experience, marketing and distribution, pricing strategy, and owner relationships. KeyData noted that while manager confidence is growing, capturing top-line growth will require more deliberate operational execution across these target areas.

Technology and artificial intelligence adoption

Artificial intelligence emerged as a primary focus in KeyData’s 2027 report, which measured AI adoption among short-term rental operators for the first time. KeyData found that nearly nine in ten respondents report using AI for at least one operational use case within their business.

The survey data highlighted unexpected adoption patterns across company scales. KeyData reported that the smallest operators lead AI adoption rather than trailing larger property management firms. Property managers reported using AI across a variety of business workflows, including guest messaging, owner reporting, social media content, portfolio insights, lead qualification, review management, internal knowledge bases, and staff training.

KeyData emphasized that AI tools are supplementing rather than replacing the traditional vacation rental technology stack. The survey showed that heavier AI usage typically occurs alongside broader overall technology adoption. KeyData observed that AI provides smaller management teams with access to new operational capabilities, while larger and more technologically sophisticated operators are integrating AI tools directly into existing management software and workflows.

Owner retention and portfolio fundamentals

While technological adoption and operational software tools continue to evolve, KeyData reported that the factors driving property owner retention remain consistent with core business fundamentals. When asked about factors likely to affect an owner’s decision to remain in a property management program, 77% of respondents selected financial performance.

Direct communication and management service quality ranked as the second most critical factor for owner retention. KeyData reported that 73% of respondents selected communication, support, and relationship quality as factors determining whether an owner remains with a management company. KeyData concluded that while new technology can support the owner experience, owners continue to prioritize strong financial yield, effective communication, property care, and visible proof of management value.

What to watch

Property managers, hosts, and short-term rental investors can monitor several core operational factors heading into 2027:

• Track direct booking shares and distribution channel performance to measure resilience against the 64.2% of managers expecting increased guest competition.
• Evaluate artificial intelligence implementations across guest messaging and owner reporting to verify whether efficiency gains maintain service quality.
• Compare owner retention rates against financial performance metrics to ensure management returns meet owner expectations.
• Benchmark corporate overhead and staffing allocations against newly established industry economics baselines as full survey results are released.