Starting a short term rental during Covid?

Question

My partner and I just signed a p&s to buy a single family home in a great location near the beach. I believe it has great potential as a short term seasonal rental but we have concerns about how Covid will impact its rentability. Is it smarter to rent it on a yearly basis for now until everything else settles down?

Lindsay Mills-Pimental · Answer

@Steven Wilson this is great news. We will likely reevaluate before the closing and see how things are going!

Joe Prillaman · Answer

@Jesse Mancuso Hi!

Jesse Mancuso · Answer

@Joe Prillaman

Joe Prillaman · Answer

In my market we saw a supply and demand issue. A lot of short term rentals were filled with long term tenants because the owners were afraid of the lasting effects of Covid. Once the restrictions lifted we had a mass influx of people driving here from Raleigh, Charlotte, Greensboro, and Winston-Salem. We have had better rates and longer stays ever since. I know this is not the same story for everyone It is very market specific. Best of luck.

Lindsay Mills-Pimental · Answer

@George Paquette wow good to know! Maybe we should reconsider

George Paquette · Answer

Lindsay, we did the same and closed on the day that things shut down. We panicked a bit and ended up approaching a utility company on the island to rent out the building (4 units) monthly. We’re kicking ourselves now because the vacation market is taking off since people can’t fly or take cruise boats. Hope this helps

Steven Foster Wilson · Answer

My 2 friends started his airbnb during the height of Covid, one was a local vacation rental, they just booked out for one whole calendar year! the other was a city rental and he's done $3750 each month since (alot here)