Representative ImageNearly three-quarters (73%) of property managers say operations and staffing challenges, alongside revenue and market pressures, are the biggest barriers to hitting their 2026 targets, according to new data from short-term rental analytics company Key Data.
The findings are published in Key Data’s Vacation Rental Industry Outlook 2026, released today. Drawing on responses from 244 short-term rental professionals representing more than 43,000 properties across the US, the report offers a snapshot of the challenges and strategies shaping the year ahead.
Regulation remains a significant headwind. Some 42% of managers expect legal or regulatory issues to limit their ability to meet 2026 targets, while 47% report facing strict permitting or licensing requirements in their markets. For many, this means higher compliance costs, limits on the number of nights or units they can operate, and ongoing uncertainty as local ordinances continue to shift.
Alongside staffing, revenue, and regulation, managers also pointed to marketing and distribution pressures (23%) as an ongoing challenge. By contrast, only 8% said technology or insights were a limiting factor, suggesting operators increasingly view tech as an enabler rather than a barrier.
Despite these pressures, optimism persists. A majority (60%) of property managers expect modest revenue growth in 2026, with only a small minority forecasting a decline.
To meet these goals, operators are prioritizing efficiency. From small to extra-large companies, operational focus ranks as the top strategic priority for 2026, ahead of marketing, guest experience, and portfolio management. Nearly a third (32%) of managers also report reviewing market data on a weekly basis to guide pricing and decision-making. In a market where staffing and revenue pressures are mounting, this emphasis on regular data review shows how operators are relying on real-time insights to stay competitive and protect margins.
Melanie Brown, Director of Data Insights at Key Data, said: “The data makes clear that property managers are feeling the pressure as they head into 2026. Staffing shortages, revenue concerns and regulation are weighing heavily on the sector. What we also see is a shift in priorities: managers are putting operations and efficiency ahead of expansion, and leaning more on data to make decisions. It reflects a market that is bracing for tougher conditions while still looking for steady, sustainable growth.”
