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.
Current supply and demand in the area
Average revenue for rentals in the area
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.
Disclaimer: The information in this blog has been prepared solely for informational purposes. The contents are based upon or derived from information generally believed to be reliable although Visio Lending accepts no liability with regard to the user's reliance on it. For legal advice, please contact your counsel.