Do views matter for STRs?

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Do views matter for STRs?

Karl McGarvey
Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes

Hello!

Currently in the search and doing due diligence on STRs that are on or near the beach, and wanted to see from others experience how much the view from a rental matters in terms of rental returns. We are looking at a few different condos in the same complex some of which have views of the complex pool/beach, and some with views of a gas station with the ocean also. The difference in price is anywhere between 15-25K and as a new guy its tough to know if the extra money will translate into renters! (My initial thought is take the reduced risk and go cheaper on our first one knowing we can always buy more expensive next time, but I also don't want to pass up “great” deals if they exist. Plus, knowledge is power. Appreciate any input!

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Mark Miles
Rental Property Investor · Philadelphia, PA · Member since 2016 · 541 posts · 715 votes
6y
Originally posted by @Karl McGarvey:

@Lucas Carl thanks! So far no issues from lenders, but I will keep my eyes open on it when I speak to them again on Monday. Completely agree on this being an opinion question, but opinions from experience is much more than I have haha.

 Oh, one more thing: don’t just look at your competitors listings, but also read their guest reviews. I often read my competitors reviews to see what features guests are raving about and what features guests are complaining about. That will give you great insight into what guests actually care about in your area.

If you see a lot of guests raving in reviews about the spectacular ocean views, that shows you there’s value there. If instead, you see most guests are raving about things like how close you are to the beach more than they are about the views, then it’s possible that the views don’t really matter. Also I think it depends if you have a patio or not. I think views matter more when there’s a patio facing the water. Just my two cents

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  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    6y

    From what I see of your pics, the first one has a closer view of the ocean. That’s definitely better than the second one with the overview of the pool and the ocean in the distance. The first one being closer will also mean a shorter walk to the beach, which will be preferable to renters. 

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  • Jim C.
    Investor · IN · Member since 2012 · 263 posts · 168 votes
    6y

    @Karl McGarvey- (Disclaimer: I own a house 1 mile from a beach, not a condo.) That being said, in my area, condos and houses on the beach cost 1.5M+ and rent for $900-1000 per night. My house, 1 mile away, cost $200k and rents for $200 per night. My house is 100% booked during high season, and 70% booked during low season. The high end properties are only booked about 40-50% high season and 29% low season. So, I would look at the ROI and not be concerned about the view/no view. Follow the numbers.

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  • Carlos Carbajal
    Property Manager · San Francisco, CA · Member since 2017 · 74 posts · 71 votes
    6y

    @Karl McGarvey

    I manage 10 units on the beach in Pacifica, CA.  Most of them have beachfront views, a few do not.

    Without a doubt the ones with the views book more often at higher rates. I am almost certain you will make more net income off of the unit with the view.

    @Nathan Speary said it best "You don’t want to be forced to compete on price; which you’ll have to do if you can’t compete on views."

    I would also recommend a drone photo showing how close to the beach you are something like this:

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  • Collin Chan
    Investor · Dublin, CA · Member since 2019 · 167 posts · 134 votes
    6y

    @Karl McGarvey

    Some thoughts. The unfurnished looks out onto a parking lot as well so check noise and if the waves are close enough to be the primary sound. Too much car noise could generate some negative feedback on your rental listing.

    I personally like the second unit as when I stay at a hotel, having a similar location usually is better and quieter. You seem to be far enough away from the pool so during the day it might not be that loud as too close to the pool could be a deterrent as well.

    If you do go for the furnished, talk about paying separately for any furniture as you pay property tax on purchase price and you don’t want to pay property tax on furniture if that drives up the price at all.

    Collin

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  • Karl McGarvey
    OP
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    6y

    @Collin Chan great advice! Had not considered the idea of paying separately

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