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Should You Adjust Your Minimum Stay Requirements in Q1? đ¤
The first quarter brings softer demand, shorter booking windows, and more price-sensitive travelers. Smart minimum-stay adjustmentsâgrounded in data, not guessworkâcan protect revenue while improving occupancy.
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December 26th, 2025
Good evening STR Report Community!
In todayâs issue, you will find:
đąTodayâs Article: Should You Adjust Your Minimum Stay Requirements in Q1?
đ Trending Market Highlight: Cooperstown, New York and Hershey, Pennsylvania
âď¸ STR News: How Tax Compliance Can Be a Competitive Differentiator for Short-Term Rentals
đ¸ Mortgage Rate Watch
đ⨠Unique Airbnb of the Week
đŤ Subscriber Perks: Go Live Playbook, including: Beginnerâs Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book
â
Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More
đŹ See our collection of newsletters here: Prior Newsletters
Should You Adjust Your Minimum Stay Requirements in Q1?
Q1 is a strange season for short-term rentals. Demand dips after the holidays, business travel hasnât fully rebounded, and leisure guests are cautious with discretionary spending. That combination forces operators to answer a deceptively simple question: should you allow shorter stays to fill gaps, or hold firm for longer bookings?
The right answer depends on your market, your cost structure, andâmost importantlyâyour data.

What the Data Says About Q1 Demand
Across most markets, Q1 booking patterns skew shorter. Travelers are more likely to book:
Weekend getaways
1â2-night work trips
Last-minute stays driven by events or weather
Longer leisure trips do happen, but theyâre less frequent and often booked closer to arrival. Properties with rigid 3â5 night minimums often experience more vacant nights simply because demand doesnât align with the rule.
The Case for Allowing 1â2-Night Stays
Lowering minimum stays in Q1 can improve occupancy without necessarily hurting revenueâif done intentionally.
Benefits include:
Filling orphan nights between bookings
Capturing last-minute demand
Improving listing visibility on booking platforms
Generating more reviews during a slower season
In many markets, data shows that two 2-night stays can outperform one longer booking when pricing is adjusted correctly, especially midweek.
The Hidden Costs of Short Stays
That said, shorter stays arenât free money. They come with:
Higher cleaning and turnover costs
More operational complexity
Increased wear and tear
Greater guest communication volume
If your cleaning costs are high or your operation isnât streamlined, accepting 1-night stays at the wrong price can erode margins quickly.
When Longer Minimums Still Make Sense
Holding a 3+ night minimum can be the right move if:
You operate in a drive-to leisure market with longer average stays
Your property attracts family or group travel
Cleaning costs are disproportionately high
Your historical Q1 data shows stable longer bookings
In these cases, selectively opening shorter stays only to fill gaps (rather than across the calendar) often works better than a blanket policy change.
The Smart Q1 Strategy: Flexibility, Not Extremes
The strongest Q1 performers rarely choose âshort stays onlyâ or âlong stays only.â Instead, they use dynamic minimum stays:
Shorter minimums for weekdays and last-minute windows
Longer minimums for weekends or peak dates
Pricing premiums for 1-night stays to protect margins
This approach lets demand dictate behavior instead of forcing the calendar to comply with a static rule.
Q1 rewards operators who are flexible, data-driven, and realistic about demand. If your calendar has gaps, your minimum stay rule might be the problemâbut changing it without adjusting pricing and costs can create new ones.
Before you decide, review your past Q1 performance, cleaning costs, and booking lead times. The best minimum stay policy isnât the shortest or the longestâitâs the one that matches how guests actually travel in the first quarter.

Cooperstown, New York đ
Downloadable Cooperstown, New York Short-Term Rental Market Report
|

Average Daily Rate (ADR): $339.54 per night
Occupancy Rate: 53.24%
Annual Revenue Potential: Around $58,584 per year
Read our full Cooperstown, New York Short-Term Rental Market Report attached above.
Hershey, Pennsylvania đŤ
Downloadable Hershey, Pennsylvania Short-Term Rental Market Report
|

Average Daily Rate (ADR): $162.67 per night
Occupancy Rate: 53.96%
Annual Revenue Potential: Around $54,072 per year
Read our full Hershey, Pennsylvania Short-Term Rental Market Report attached above.
đŹ See our collection of 120+ market reports here: Prior Trending Market Reports

đ How digital monitoring is reshaping short-term rental enforcement in Europe
ShortTermRentalz interviewed Francesc Serrano, CEO and founder of Talk&Code, to understand how digital monitoring tools are being used by public authorities to identify potentially non-compliant listings at scale.
đĄ Is pricing really the problem? Why content quality matters for STR performance
Dynamic pricing and revenue management solution provider PriceLabs reviewed over 10,000 STR listings across 9 cities and found that only 9 per cent achieved high quality content scores. The research underscored the importance of content quality for improving performance.
đ¸ How Tax Compliance Can Be a Competitive Differentiator for Short-Term Rentals
For todayâs short-term rental hosts and operators, margins are tightening as the market matures. As tax and regulatory issues continue to be a moving target, new research underscores why compliance is emerging as one of the most consequential and underestimated issues facing the STR sector today.
đ¸Mortgage Rate Watch â December 26th, 2025
Current Mortgage Rates (updated as of December 24, 2025):
30-Year Fixed: 6.21% (â0.03%)
15-Year Fixed: 5.74% (â0.01%)
30-Year Jumbo: 6.40% (â0.02%)
30-Year FHA: 5.86% (â0.02%)
30-Year VA: 5.88% (â0.01%)
7/6 SOFR ARM: 5.79% (â0.02%)
Market Overview: Mortgage rates moved modestly lower today, led by a three-basis-point decline in the 30-year fixed rate to 6.21%. The pullback reflects lighter holiday-week trading and steady bond market conditions, with limited new economic data influencing rate movement. Overall pricing suggests lenders remain cautious but slightly more flexible as the year winds down.
Rate Trends & Forecast:
Short-Term: Rates are likely to remain in a tight range through the end of the year, with small day-to-day changes expected unless unexpected economic data or market volatility emerges.
Long-Term: If inflation continues to moderate and long-term Treasury yields trend lower in early 2026, there is potential for gradual rate improvement. However, meaningful declines will still require a clearer shift in economic conditions or monetary policy.
For real-time mortgage rate updates, visit Mortgage News Daily.

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Subscriber Perks:
đđĄđ° Go Live Playbook
The "Go Live Playbook" is your all-in-one guide featuring a beginnerâs guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.
Community Perks with The STR Report
đ Top-Tier Property Management â Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. See how much more your property could earnâclick to get your free performance assessment.
đ Personal Airbnb Investment Finder â Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, youâre in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing a 10-15% Cash-on-Cash return.
đ¤ STR Loans & More â Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.
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