STR in Bloomington, Indiana?

Question

Howdy-

Does anyone have any experience with short term rentals in the Bloomington, Indiana area? I'm specifically looking at a property on Lake Monroe. I'm wondering about any potential regulations that might make this a more difficult process than I'm anticipating.

Thanks!

Nick

Michael Baum · Answer

Hey @Nicholas McCormick have you taken the time to search AirBNB and VRBO and see what is running in the area?

Start there to see if it is even worth your while. Check their occupancy, nightly rate and amenities.

Collin Hays · Answer

Check with municipalities, counties, and HOAs to ensure you are in the clear.  No other way to do it.

Mike Grudzien · Answer

Collin and Michael above are spot on. Those are the 2 avenues of research you need to do as your due diligence.

John Underwood · Answer

Collin and Michael both gave excellent advice. You should start with both of these suggestions.

Alex Nauth · Answer

I own 4 STRs in Indy and have looked into the Nashville, IN market. It looks like there's quite a few regulations in place at least in Nashville, IN (not sure about Bloomington). But don't let regulations deter you, a harder market to enter in theory mean less competition since most don't want to track down and follow all the regulations.

Kynzie Neal · Answer

We manage 4 Bloomington STRs, one being on Lake Monroe. It stays booked in the summer and is quiet in winter (cannot use the lake, community pool, community golf course, etc). It would be a great investment if your parents are living there in the winter, and away during the summer! Please do check with HOA on having an STR in that specific neighborhood. We also have this specific property listed on FF in hopes of gaining a 3 month + rental through the winter.

Mya Toohey · Answer

I'm from Louisville KY and traveled to Bloomington for a Big Box company as a trainer. Due to the university there I worked with a lot of incoming families and getting what they needed for their dorms.  One of the biggest complaints was the lack of places to stay and the expense for such.  I'm sure how far Lake Monroe if from the University but I would also look into the amount of STRs in that as well.

Nicholas McCormick · Answer

I agree. I did do a precursory investigation into what requirements are and it looks like there might be some zoning restrictions, as well as permits required. I was hoping someone might have some experience in this market to know how challenging the process would be to obtain the permit.

Thanks for your input!

Nick

Nicholas McCormick · Answer

I used All the Rooms to get some general data. Overall, it sounds like 21% occupancy rate at about $200 per night. Not the greatest occupancy rate, especially when compared with somewhere like the Smokies. However, I am thinking of having my parents who are retired living there part of the year and doing STR for the remainder of the time. It might not be the greatest return ever, but it would allow for some revenue to come in when it is vacant.

Thanks for your input!

Nick

STR in Bloomington, Indiana?

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