The short-term rental market is poised for continued growth as platforms like Airbnb and Booking.com expand their presence globally. Yet, with this growth comes increasing scrutiny over the industry’s impact on local communities and the environment. A 2024 survey by the Global Sustainability Initiative found that 60% of renters are more likely to choose properties managed by companies that prioritize sustainable practices. For rental operators, the challenge is clear: how to expand operations while maintaining profitability and adhering to evolving sustainability standards.
When an independent entrepreneur Daniil Demchuk first started expanding his short-term rental business, he didn’t anticipate that sustainability would become a cornerstone of his strategy. “Initially, it was all about finding ways to grow profitably,” Demchuk recalls. “But as I expanded, I saw the impact we were having on local communities and the environment. That’s when I knew I had to rethink my approach.”
Demchuk’s breakthrough moment came during a project where he managed over 50 properties in a densely populated urban area. “Energy costs were spiraling out of control, and local residents were increasingly resistant to new rental properties,” he explains. “It felt like I was hitting a wall.” Rather than pushing forward, Demchuk took a step back and decided to explore new ways to integrate sustainability into his business.
That’s when he introduced his innovative energy-saving system, designed to cut electricity usage in rental properties by an average of 25%. The system works by integrating multiple technologies: IoT-based smart thermostats that automatically adjust heating and cooling based on occupancy, automated lighting systems that turn off when rooms are vacant, and energy-efficient appliances that use minimal power. All of these elements are connected through a centralized dashboard, allowing property managers to monitor and control energy usage in real time. “Our system is designed to be user-friendly, so even property owners who aren’t tech-savvy can easily implement and manage it,” Demchuk explains.
Additionally, the technology leverages machine learning to identify patterns in energy consumption. For instance, if the system detects that certain properties have consistently higher energy use at specific times, it can suggest adjustments to optimize energy efficiency. “The idea is to not only cut costs but also to make properties more responsive and adaptable,” says Demchuk.
The shift wasn’t easy. Many property owners were skeptical, seeing sustainability as an added cost rather than an investment. But Demchuk persisted. “It took a lot of conversations, a lot of convincing. I had to prove that these initiatives would pay off—not just in cost savings, but in building a positive reputation and ensuring long-term growth,” he notes. The results spoke for themselves. His properties saw higher occupancy rates and more positive reviews, and his business continued to expand—this time with the full support of the communities around him.
Today, Demchuk’s properties serve as a model for sustainable growth in the short-term rental industry. But for him, this is just the beginning. “Sustainability is about constantly evolving and finding better ways to operate,” he shares. He’s now looking to expand into international markets, focusing on regions that share his commitment to environmental and social impact. Northern Europe and Canada, known for their strict environmental regulations, are key targets for his next phase of expansion.
Demchuk believes that sustainable growth is more than a business strategy—it’s a responsibility. “As business owners, we have the power to influence how industries evolve. I want to build something that lasts, something that shows other businesses it’s possible to be both profitable and responsible,” he concludes. With his eyes set on the future, Demchuk aims to continue his journey, leading by example and proving that sustainability and profitability are not mutually exclusive.