Does anyone have experience in the Alaska short-term rental market? I'm researching the area with the intent to buy a large house within an hour of Anchorage with the intent to rent it out as a premium short-term rental. I'm planning to move to the area myself and would love to buy, occupy, and then convert it to an investment property after ~1 year. Unfortunately, my research so far shows low nightly rates that don't match the high purchase prices.
I had 2 STRs within the MatSu Borough for about 3 years. Compared to our long-term rentals, the cashflow was significantly higher. The City of Wasilla is not nearly as “friendly” towards STRs, as the borough. If you are looking in this area specifically, I’d buy right outside Wasilla city limits and skip the hassle. That being said, I plan on going through the city hoops in order to convert one of my long-term rentals, when my current tenants lease is up. Short term rentals are in short supply in our area.
Flipper/Rehabber · Anchorage, AK · Member since 2017 · 223 posts · 177 votes
5y
Within an hour of Anchorage could mean a lot. If you're buying out in the valley then there isn't going to be nearly as big as an Air BnB market as there is in Girdwood. Both are on opposite ends of the Air BnB spectrum but 35-45 min outside Anchorage.
I had 2 STRs within the MatSu Borough for about 3 years. Compared to our long-term rentals, the cashflow was significantly higher. The City of Wasilla is not nearly as “friendly” towards STRs, as the borough. If you are looking in this area specifically, I’d buy right outside Wasilla city limits and skip the hassle. That being said, I plan on going through the city hoops in order to convert one of my long-term rentals, when my current tenants lease is up. Short term rentals are in short supply in our area.
Thank you for your insights. What kind of travelers do you get in Girdwood and Wasilla? Is it mostly outdoorsy people (hikers, skiers, mountaineers, etc)?
Girdwood gets winter tourists to ski Alyeska as well as the tourists during the regular summer season. It is inside the Anchorage city limits. I believe the housing prices are higher as well as the STR prices that you can charge. The Alyeska hotel is getting a beautiful expensive upgrade, which should bring in more tourists to the area. Wasilla gets tourists who fly into Anchorage, along with people visiting family/locals, or tourists who are on their way to Denali, Talkeetna or Fairbanks. Depending on location, the Valley is a good base for summer tourists. In the winter, I hosted 1-3 month tenants who were working at the Providence or MatSu Regional. During the winter, it is popular for people getting out of Anchorage for a weekend of “snowmaching” or relaxation. I would imagine that you could get more “house” for the STR prices you could charge, in the Palmer/Wasilla area, compared to Girdwood. I believe that Palmer has 1 hotel and Wasilla only 2. The MatSu borough charges a 5% bed tax with no other oversight.