New to STR market in Massachusetts

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New to STR market in Massachusetts

Kiran Asknani
Member since 2024 · 3 posts · 2 votes

Hi All I am new to STR game and am planning to start with investing in Boston area or nearby suburbs as I have spent last 10 years in Boston. Any idea on overall how is the market from STR investment perspective? I purchased Air DNA pro subscription , any thoughts on accuracy of AirDNA numbers for Boston market. Also , I would love to connect with any agents who specialize in STR market in Boston Mass area.

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Theresa Holl
Investor · Minneapolis · Member since 2023 · 265 posts · 161 votes
2y

Major metros pose certain challenges, as everyone has heard. What AirDNA is missing is creativity. You can't really predict for a creative business mind and how they might craft a guest experience that stands out in their market. Fun example: my business partner had an STR in Sedona with an oddly long laundry room. To most people, that would mean nothing, but she has strong marketing and design background. So she took that extra space, added a wall and a hidden door and poof! She's got a secret cinema room. She plants clues around the house about how to find it, guests absolutely love it and then she is booked out 2 years solid.

There's no Airbnb calc tool that really accounts for creativity and its financial value. Most hosts just lower their prices when things get rough but guests just want am interesting experience. 

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  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    STR in Boston (and metro) are mainly for owner occupied residents only which means you can rent your bedroom or an adjacent unit. It is not for strictly landlords. There are other suburbs that you may be able to do it in but its not going to have the booking rate you're looking for. The alternative to that is going to the Cape, Western MA, as well as adjacent states with coastal/lakeside properties where many of us New Englanders vacation.

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  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y
    Quote from @Kiran Asknani:

    Hi All I am new to STR game and am planning to start with investing in Boston area or nearby suburbs as I have spent last 10 years in Boston. Any idea on overall how is the market from STR investment perspective? I purchased Air DNA pro subscription , any thoughts on accuracy of AirDNA numbers for Boston market. Also , I would love to connect with any agents who specialize in STR market in Boston Mass area.


     airdna is pretty accurate . lenders use it to assess rental comps for short terms rentals when financing a short term rental 

    0Reply
  • Matthew Mounier
    Rental Property Investor · Member since 2020 · 3 posts · 0 votes
    2y

    With regulations increasing we've been seeing more and more people who want to invest in STRs start investing in Vacation rentals. It's pretty much the same thing just from a distance. Can provide all the benefits from a cash flow and tax perspective. Give you a cool place to visit (and potentially write off). And could even get a second home loan if doing traditional financing. Just need a good team in place. 

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  • James CarlsonBusiness Member
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    2y

    @Kiran Asknani

    AirDNA is within shouting distance of my clients' STR actual revenues here in Colorado. But it's just a starting point. We dive into the actual comparable properties to make sure nothing is skewing it wildly.

    Before you do anything, though, know they STR laws. In most states, Airbnb rules are city and county specific. In Denver metro area, for instance, the city of Denver only allows short-term rentals in a primary residence. Most nearby cities are the same.

    Even in the Denver-adjacent cities that do allow non-owner occupied STRs, they vary widely -- some have caps on STRs, some cap the nights rentable as an STR, some cap the number of vacation rentals one owner can have, etc. etc.

    This is all to say, first know where you can do Airbnb, then start running numbers.

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  • Tanner Lewis
    Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
    2y
    Quote from @Jacob Sherman:
    Quote from @Kiran Asknani:

    Hi All I am new to STR game and am planning to start with investing in Boston area or nearby suburbs as I have spent last 10 years in Boston. Any idea on overall how is the market from STR investment perspective? I purchased Air DNA pro subscription , any thoughts on accuracy of AirDNA numbers for Boston market. Also , I would love to connect with any agents who specialize in STR market in Boston Mass area.


     airdna is pretty accurate . lenders use it to assess rental comps for short terms rentals when financing a short term rental 


    I use it for DSCR loans as well; it is accurate yet conservative because it gives you the median 50 percentile for the area based on comps. Just make sure the bed/bath count is correct as it can affect the income drastically

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    Boston is not STR friendly unless you live in the property. Some of the outlaying cities may have some different regulations, but it's a hard area! I have some connections there with other hosts/STR companies. If you would like their contact info, feel free to reach out!

    [email protected]330-557-3021
    1Reply
  • Tanner Lewis
    Lender · Austin, TX · Member since 2021 · 447 posts · 441 votes
    2y
    Quote from @Sarah Kensinger:

    Boston is not STR friendly unless you live in the property. Some of the outlaying cities may have some different regulations, but it's a hard area! I have some connections there with other hosts/STR companies. If you would like their contact info, feel free to reach out!


    Chalet is a great resource for getting set up with a STR team. I've been talking to a realtor they connected me with in Clearwater, and they are a STR investor and own 10 rentals in the market as well as know the STR regulations street by street. Very good resource for getting set up with STR property managers, cleaning services, realtors, lenders, etc. https://www.getchalet.com/

    0Reply
  • Theresa Holl
    Investor · Minneapolis · Member since 2023 · 265 posts · 161 votes
    2y

    Major metros pose certain challenges, as everyone has heard. What AirDNA is missing is creativity. You can't really predict for a creative business mind and how they might craft a guest experience that stands out in their market. Fun example: my business partner had an STR in Sedona with an oddly long laundry room. To most people, that would mean nothing, but she has strong marketing and design background. So she took that extra space, added a wall and a hidden door and poof! She's got a secret cinema room. She plants clues around the house about how to find it, guests absolutely love it and then she is booked out 2 years solid.

    There's no Airbnb calc tool that really accounts for creativity and its financial value. Most hosts just lower their prices when things get rough but guests just want am interesting experience. 

    2Reply
  • Daniel McDonald
    Real Estate Agent · Beverly, MA · Member since 2019 · 358 posts · 308 votes
    1y

    @Kiran Asknani what part of MA are you thinking? I'm an agent and house hacker in the north shore. I also own a co hosting business but my rentals are in FL and TN. As mentioned above, MA is much more stringent on STR regulations. But luckily MA/NE is so small you can invest in a different state and still be driving distance. Happy to chat through some options. I have access to AirDNA and it has its shortcomings. I wouldn't run a STR without Pricelabs. That's a necessary tool that has some different aspects to it that allows you to see the WHOLE picture. Just shoot me a dm if you have any questions.

    0Reply
  • Mya Toohey
    Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes
    1y

    I specialize on STRs in the Tampa FL area.  As you start you will want to take into consideration that many owners and hosts use more than just AirBNb to host their properties.  With the use of VRBO, Booking.com and direct bookings can all raise your chances of staying booked and being successful.   If you determine that the numbers look good, make sure to check other sites to see if the comparable property is on multiple sites that may add to the numbers.  

    1Reply
  • Jacob Trudeau
    Member since 2024 · 7 posts · 0 votes
    1y
    Quote from @Daniel McDonald:

    @Kiran Asknani what part of MA are you thinking? I'm an agent and house hacker in the north shore. I also own a co hosting business but my rentals are in FL and TN. As mentioned above, MA is much more stringent on STR regulations. But luckily MA/NE is so small you can invest in a different state and still be driving distance. Happy to chat through some options. I have access to AirDNA and it has its shortcomings. I wouldn't run a STR without Pricelabs. That's a necessary tool that has some different aspects to it that allows you to see the WHOLE picture. Just shoot me a dm if you have any questions.


    0Reply
  • Jacob Trudeau
    Member since 2024 · 7 posts · 0 votes
    1y

    I already have the strs, close to northampton and berkshire county,

    0Reply
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