Does anyone have experience with short term rentals? I'm in discussion of some condos on the coast. I've been told some condos are getting $1200 per week to rent. Certainly a better return than even many very good cash flowing long term rentals, even with 2/3 of the year having a lot of vacancy. Are these numbers realistic? Are there resources to analyze these numbers (such as a rentometer-like site). Any other sharing on experiences within this realm are appreciated.
Hey I am a realtor outside of wilmington. I've looked at condos for a client before and while the weekly rentals are correct.... have you inquired about all the fees? You will be nickel and dimed to death, or at least that has been my experience when looking. For instance, you have insurance (wind/hail, flood, and liability), taxes, HOA, PM fee, turn over fee, utilities etc. Average HOA fee I have seen is roughly 5-6k a year. Then you add in the fact that that 1200 a week is generally only for the peak season (three months) and then drops a bunch during offseason. Have you seen the financials for the property for multiple years to see all the fees as well as true occupancy?
Good points. The area I'm looking is New Bern, NC. What's been presented is $1200 per week, for 28 weeks of the year. I'm unsure if this is realistic, but admittedly do not know that area well. I'm unsure of the HOA fees and such.
The New Bern market (inner banks) is different than the coast. You should consider all expenses with coastal condos have and not get lured in to seasonal peak revenue numbers. Management, HOA, and seasonal vacancy will consume most of your revenue and most likely you will have several months of negative cash flow during out-of-season months.
Without knowing the property (on the river?, size?, amenities?, etc.), $1200/week may or may not be realistic.