As short-term rentals grow in popularity around the U.S., more investors are eyeing opportunities in the fast-expanding industry.
And thanks to a recent analysis from rented.com, real estate investors have more insight into what cities can provide the biggest upside for short-term rental investments. The company, which provides services to help homeowners rent and manage their second homes, said the short-term rental market is still evolving but quickly growing.
“The vacation rental industry has seen two major change within the past year: the infusion of large sums of venture capital and a shifting regulatory landscape,” the company wrote in its 2019 report detailing the 150 best places to buy vacation rental properties. “The space has expanded rapidly due to the venture capital, but prospective buyers must now be wary of some urban markets due to regulations. These markets now can run the risk of increasing home values, and debilitating regulatory risks that nullify any short-term rental income opportunities.”
To establish its list, rented.com looked at 150 U.S. markets and compared costs of home ownership — including purchase price, taxes, insurance, and maintenance — and short-term rental potential data. The company also looked at short-term rental regulations in the markets, which can have a significant impact on a vacation homeowner’s returns.
Here are rented.com’s top five locales for vacation rentals ranked by return on investment. For the entire ranking of 150 cities, click here.
- Pigeon Forge, Tennessee — Earning a vacation rental score of 98.4 out of 100, rented.com estimates that vacation rentals will earn about $43,500 per year.
- Gatlinburg, Tennessee — Earning a vacation rental score of 93.9 out of 100, rented.com estimates that vacation rentals will earn about $45,000 per year.
- Panama City Beach, Florida — Earning a vacation rental score of 90.5 out of 100, rented.com estimates that vacation rentals will earn about $20,000 per year.
- Killington, Vermont — Earning a vacation rental score of 87.6 out of 100, rented.com estimates that vacation rentals will earn about $39,000 per year.
- Palm Coast, Florida — Earning a vacation rental score of 86.9 out of 100, rented.com estimates that vacation rentals will earn about $33,000 per year.
0 Comments