Anyone Own a Lake Rental Property? Share Your Experience

Short-Term & Vacation Rental Discussions

Anyone Own a Lake Rental Property? Share Your Experience

Property Manager · Richmond, VA · Member since 2018 · 36 posts · 19 votes

My wife and I spend quite a lot of time at a lake in southern Virginia (Kerr Lake, aka Buggs Island). We are contemplating buying a house down there and setting it up as a vacation rental. I know all houses are different and every lake is different but does anyone here have a lake property they rent on AirBnB (or similar site)? What was your experience? Can they pay for themselves or generate real profit?

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

I have a lake house that rent on VRBO and Airbnb. I make the bulk of the money via Homeaway/Vrbo and very very little on Airbnb.

Yes our lake house makes money well above just paying for itself.

Our house is close to a University so we get extra rentals from home game weekends, graduation etc. We also get top dollar for the summer months.

Surprisingly we rent out alot in the winter spring and fall.

There are major fishing tournaments that bring us extra bookings and people who just come up to fish.

We have a covered boat slip with a lift where my boat stays unless someone asks to use it.

We make improvements every year to make the place nicer.

It's my happy place.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
I have a lake house that rent on VRBO and Airbnb. I make the bulk of the money via Homeaway/Vrbo and very very little on Airbnb.
Yes our lake house makes money well above just paying for itself.
Our house is close to a University so we get extra rentals from home game weekends, graduation etc. We also get top dollar for the summer months.
Surprisingly we rent out alot in the winter spring and fall.
There are major fishing tournaments that bring us extra bookings and people who just come up to fish.
We have a covered boat slip with a lift where my boat stays unless someone asks to use it.
We make improvements every year to make the place nicer.
It's my happy place.
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Jaret Walker
Specialist · Crossville, TN · Member since 2018 · 73 posts · 27 votes
6y
@Morgan Porter
Hey Morgan I have a friend that bought a lake house two years ago for the same purpose but ended up liking the lake living and staying full time. They then used the rest of the lot to put in 12 RV spaces with hook ups, a on site boat ramp, and a small day dock. They are keeping all the slots full year round with very little maintenance. It’s just a thought because it is working very well for them but I don’t know the area you are looking in to know if that is even possible.
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Jon Crosby
Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
6y
@Morgan Porter
We have a 'Lake' house in Tahoe (3 blocks from the lake that is and is our 2nd one). But I feel like your question is more about short term rentals in general then lake house specific.
Whether or not it pays for itself as a 'lake house' is probably tertiary to the simple acquisition analysis and operating model you run your STR under. The acquisition analysis would include market analysis to which there are lots of lakes with houses on them that nobody comes and rents so it's all market and 'guest experience' specific as to what kind of returns you will get.
All that being said, if you are talking about a lake (market) that already has established vacation rental history then there should be no reason you can't find a 'vacation home for free' in there with the right purchase.

Remember all real estate successes are made in the buy, not the sell. ;)
Best of luck and hope you find a winner out there!

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Morgan PorterBusiness Member
OP
Property Manager · Richmond, VA · Member since 2018 · 36 posts · 19 votes
6y
@John Underwood Thanks! You’re making this an easier “yes”. Anyone have some negatives to share?
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Morgan PorterBusiness Member
OP
Property Manager · Richmond, VA · Member since 2018 · 36 posts · 19 votes
6y
@Jaret Walker That’s an interesting idea! Unfortunately this lake doesn’t have many level lots. We’d most likely not have a lot of spots for RV parking. But I’ll keep an eye out for sure. Very good idea!
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Morgan PorterBusiness Member
OP
Property Manager · Richmond, VA · Member since 2018 · 36 posts · 19 votes
6y
@Jon Crosby Definitely good advice and yes I’m asking generally about vacation rentals but hoping to find more pros and cons specifically about Lake rentals. (And if anyone out there is already doing this on Kerr Lake, it’d be great to hear from you.)
Definitely looking to “win on the buy” but the hard part is evaluating the rental income potential of a given house or the lake as a whole. My estimates on income for the last house I analyzed ranged from $13k - $40k per year. If it’s on the high end it would be a great but if we end up on the low end it’d be a big dud, or worse, a huge drain on our family finances. I’m just too used to the annual rentals which are steady and predictable so I’m nervous.
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
6y
Hey @Morgan Porter, we have a lake house in Idaho on Lake Coeur d'Alene. It pays for itself but we are not making a ton of dough above expenses. That is OK as it used by us for family.
Now north Idaho is a snowy, frozen place in the winter and our home is pretty far from skiing so that is out. The lake is ice cold in the spring so June to Oct is our time and we are usually full.
The biggest negatives are the higher cost of insurance if you cover the beach area and dock. Other than that, I don't think we have any issues that any other STR has.
I suppose maintenance could be a bit more if you get a lot of wind blown snow off the lake. Meh, not a big deal.

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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
We bought an old 1 bed 1 mini-sized bath Lake house & literally gutted/rehabbed it into 4 beds 2.5 baths. We have been offered $2000/week BUT my wife refuses to surrender the tranquility of our personal space. So she decided to actively invest in the immediate area & now the COC return on these investments is more than triple any cost of operating our Lakehouse. Plus we get to drive by them very often. Our neighbors have a very small ramshackle, (constantly need repairs & a septic pump) cottage that goes for $1500/week ALL summer long.
We get every sunrise & every sunset ...... you can't put $$$ on that.
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Diana T.
Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
6y
@Pat L.
Which lake? I live in ct and starting to get serious about a Lakehouse. Thanks!
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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
Originally posted by @Diana T.:
@Pat L.
Which lake? I live in ct and starting to get serious about a Lakehouse. Thanks!

Lake Ontario, Orleans county. This morning's sunrise !!!

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Diana T.
Rental Property Investor · Shelton, CT · Member since 2012 · 92 posts · 176 votes
6y
@Pat L.
I guess I’m doing something wrong ;)
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Anand S.
Plantation, FL · Member since 2009 · 329 posts · 119 votes
6y
Do you guys get mosquitos on your lake houses?
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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
Originally posted by @Anand S.:
Do you guys get mosquitos on your lake houses?

Yes we do but with a breeze most of the time they don't bother us. We were all out for 4 hours last night around the fire pit & no bites & I rarely use repellant, but should.
This is the view from our kitchen as the sun set....
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Account Closed
Member since 2018 · 58 posts · 24 votes
6y
@Morgan Porter
Short Term Rentals can be very profitable. The mechanics of it are simple, and it is simple to set up. However, spend time researching the operation of it, because dealing with people is not always easy. Many guests try to get away with murder. They can be hard on the property, and very demanding. And unfortunately, lying is very common, and about everything. It is a business that requires specialty knowledge, beyond being a landlord.There are resources out there, but when you start learning, don’t let the horror stories you will start hearing scare you.
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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
Originally posted by @Account Closed:
@Morgan Porter
Short Term Rentals can be very profitable. The mechanics of it are simple, and it is simple to set up. However, spend time researching the operation of it, because dealing with people is not always easy. Many guests try to get away with murder. They can be hard on the property, and very demanding. And unfortunately, lying is very common, and about everything. It is a business that requires specialty knowledge, beyond being a landlord.There are resources out there, but when you start learning, don’t let the horror stories you will start hearing scare you.

Sage advice. We have family that STR their beautiful home in a ski resort here. Never had any problems & then a group literally trashed the place. The damage deposit was no where near enough to compensate for the damages.
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