Last Updated: 12-2019
With the emergence of sharing economy, an increasing number of homeowners choose to rent out their homes as holiday rental in place of supplying the market for long-term rentals. This paper aims at investigating the influence of factors on homeowners’ choice to supply holiday rentals and long-term rentals. A multinomial logit model is applied to disclose homeowners’ choice preferences of holiday and long-term rental attributes on average as well as the influence of particular context and socio-demographic variables on the rental choice and preferences. A mixed logit model is employed to test the existence of taste variations for attributes and a latent class model incorporating membership functions is employed to further examine differences between classes of homeowners. A stated choice experiment designed for identifying the rental choice behavior of homeowners provides the data for model estimation. The main findings indicate that financial factors including occupancy rate and daily income have a substantial impact on rental preference. Policy instruments like 30-day limit appear to be a major deterrent in the choice for holiday rental. Neighbors’ attitude towards holiday rental also influences homeowners’ rental choice. Furthermore, the results show that property types and conditions as context variables have a significant effect and there are differences in preferences among different socio-demographic groups.