LOUISVILLE, Ky. — The Kentucky Derby draws visitors from all over the world, and with that comes a high demand of people looking for somewhere to stay.
Renting out short-term rentals through platforms like Airbnb has proven successful for hosts.
Justin Reid owns Key Source Properties with his husband, Jonathan Klunk. They manage 25 properties.
It all started in 2015 when they were trying to figure out what to do with a rental property they owned.
“We heard about this new thing called Airbnb,” Reid said. “We decided to try out Airbnb, and it was a huge success for us.”
From there, Reid said it was a snowball effect when people saw how well the couple did for that year’s Derby.
“Historically, homes can go for quite a bit of money on that weekend,” Reid said.
He isn’t the only short-term property host who benefits from the Derby.
“The rentals, they oftentimes book out ... (nine months)-plus before Derby even starts because people are looking a year or so in advance to secure their place of where they’re going to stay with their group,” said Toni Boer, who owns six short-term rentals and manages nine.
Both Boer and Reid also make a lot more money with their rentals during Derby. Hosts may typically get around $3,000 a month for one property, Reid said; however, it’s a different story during Derby weekend.
“On Derby weekend alone, you could easily get $10,000 to $12,000 just for the weekend,” Reid said.
That depends on some factors, like the size of the rental.
For Reid and Boer, it’s also about bringing people together for Kentucky’s biggest event and giving their guests a place to stay that is both enjoyable and memorable.
With this year marking the 150th running of the Derby, Reid said all their properties were booked out earlier than usual. Typically, they’ll get reservations trickling in until Derby weekend, but their properties were fully booked by March.