Location, location, location. Vacation rentals (short-term rentals) are highly popular and this will not be changing anytime soon, especially with platforms like Airbnb and HomeAway becoming a preferred option for lodging over hotels. Being a super host or landlord is easily more common these days too, but where do you start if you don’t already have a residence to rent out?
Finding an ideal location for a new vacation rental home is paramount, and the process can be quite involved. If you don’t already have a realtor in the areas you are looking, you should consider partnering with one. Realtors can offer great insight about the area and keep you top of mind when scouring properties for other clients. For your own due diligence, you should also conduct a geographical competitive analysis that compares the various markets you’re interested in.
Some things you should consider:
- Walk-ability to entertainment, food, etc.
- Occupancy rates
- Current supply and demand in the area
- Average revenue for rentals in the area
- Crime rate
You can even use heat maps and data reports about specific markets and areas. Although purchasing near your primary residence or in popular urban areas, reports often show unexpected cities yielding the highest return on investment.
Popular tools our investors often use are readily available for use on AirDNA and you can easily find market data for specific areas or for the vacation rental industry as a whole on Vacasa.
Once you have found a lucrative property, contact us to learn more about financing.
Check out our resource page on Finding Investment Properties for up-to-date resources on property searches and market data.
Related: A Look at Where to Invest in 2020, 3-Year Vacation Rental Market Trends
