Shortterm rentals in the Tacoma Area

Tacoma, Washington
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Shortterm rentals in the Tacoma Area

Tony Spencer
Carnation WA 路 Member since 2021 路 27 posts 路 12 votes

Anyone having success running an STR business in Tacoma? Any agents out there specializing in this? Im curious to learn more specifically about this market and its potential. Buying a SFH and adding an ADU to rent both separately seems to have some potential.

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Brandon VukelichBusiness Member
Real Estate Broker 路 Tacoma, WA: 馃彚 27 LTRs 馃彙 3 STRs 路 Member since 2018 路 546 posts 路 456 votes
4y

I own a 3-unit in Old Town with water views with of couple partners.  Two units are large 2/2.5 units and the 3rd is small studio.  We closed on it basically the week covid hit FEB 2020 but managed to stay in the black with long term leases.  There is a hefty amount of competition all over Tacoma.  We returned to full STRs by early 2021 for the two large units and remain full in the studio with traveling nurses that typically stay 2-3 months at a time.  Similar to Stacy's comments.  I'd say our mix of guests are nurses, family visiting local, international tourists and people coming to town to house hunt.  I'm not a fan of owning STRs, this will most likely be the only one I own but the returns are better than my boring, long-term properties. :)

Broker at Multifamily Properties519 Reviews
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  • Michael BaumPro Member
    Olympia, WA 路 Member since 2016 路 8k+ posts 路 7k+ votes
    4y

    I wouldn't do it personally. Where in Tacoma are you thinking? I can't think of much that would bring me to stay in Tacoma for any length of time. That is me though. What are your ideas?

    0Reply
  • Tony Spencer
    OP
    Carnation WA 路 Member since 2021 路 27 posts 路 12 votes
    4y

    Honestly haven't evaluated it very closely.  Just curious based on the home prices in Tacoma. I do know several people doing well with LTRs there. Not sure the specific areas. 

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  • Michael BaumPro Member
    Olympia, WA 路 Member since 2016 路 8k+ posts 路 7k+ votes
    4y

    As a general rule, I don't invest in WA state, but especially King, Pierce and Snohomish counties. They are very landlord unfriendly. There are a lot of folks who have tenants who just decided to stay and not pay. That includes short term rental people.

    If you are looking to get into vacation or short term rentals, don't be afraid of looking out of state. Long distance management of STR's isn't that hard. We do it from 360 miles away.

    1Reply
  • Sherief Elbassuoni
    Realtor 路 Bellevue, WA 路 Member since 2019 路 882 posts 路 1k+ votes
    4y

    @Tony Spencer, You can think about Medium Term Rental instead of STR in the Tacoma area. If you got a pretty big house with lots of rooms, you can rent it out to traveling nurses and young professionals per room. They typically stay 3-6 months. You just need to pick the right location close by a medical center or so

    2Reply
  • Stacy Edwards
    Virtual Assistant 路 Langley, WA 路 Member since 2022 路 43 posts 路 23 votes
    4y
    Quote from @Michael Baum:

    I wouldn't do it personally. Where in Tacoma are you thinking? I can't think of much that would bring me to stay in Tacoma for any length of time. That is me though. What are your ideas?


     I would have said the same thing ten years ago, however, I'd say Tacoma is "up and coming" surprisingly. 

    I can't speak to the STR market, however, as an "elder millennial" (38yo) I know at least a handful of acquaintances (young families) that have moved there.

    While maybe not a vacation destination, I can see people my age(ish) needing a place to stay when visiting friends or family, or Seattle people wanting to spend a weekend there to check it out. 

    1Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker 路 Tacoma, WA: 馃彚 27 LTRs 馃彙 3 STRs 路 Member since 2018 路 546 posts 路 456 votes
    4y

    I own a 3-unit in Old Town with water views with of couple partners.  Two units are large 2/2.5 units and the 3rd is small studio.  We closed on it basically the week covid hit FEB 2020 but managed to stay in the black with long term leases.  There is a hefty amount of competition all over Tacoma.  We returned to full STRs by early 2021 for the two large units and remain full in the studio with traveling nurses that typically stay 2-3 months at a time.  Similar to Stacy's comments.  I'd say our mix of guests are nurses, family visiting local, international tourists and people coming to town to house hunt.  I'm not a fan of owning STRs, this will most likely be the only one I own but the returns are better than my boring, long-term properties. :)

    Broker at Multifamily Properties519 Reviews
    WebsiteView Page
    2Reply
  • Dave Skow
    Lender 路 Seattle, WA 路 Member since 2014 路 2k+ posts 路 899 votes
    4y

    The only scenario that I could see possibly working with a STR in the tacoma area would be to buy a primary residence that has an ADU or that has ability to add ADU and then make the ADU and STR ...I think the property would need to be in an average to above average location in order to make the STR desirable to consumers to book and because of this - the price will be high

    1Reply
  • Aaron NelsonBusiness Member
    Real Estate Agent 路 Seattle, WA 路 Member since 2016 路 307 posts 路 191 votes
    4y

    @Tony Spencer - Good question. I have helped several clients buy properties for STR in Tacoma. Very solid market for STR and my clients have done well. Feel free to PM me if you want to chat/would like someone to help you find a great property. 馃槉
    My wife and I own multiple rentals in Tacoma and have taken several deals full cycle. Happy to share our experience. 

    [email protected]425-880-2580
    White Coat Realty536 Reviews
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