'26 STR Clock strikes 12 - timelines vacation rental investors should keep in mind
It is that time again...almost Q4 of 2026 - can you believe it?
It's been a whirlwind year but for STR investors hoping to capitalize on accelerated bonus depreciation the time to get serious was yesterday..realistically to shop, close, license, design, launch and get occupied investors should provide themselves 90 days (and there are 128 left in the year).
Factor in travel time, holidays and a withdrawal or strike-out and there is very little margin for error. To claim depreciation, a property must be "placed in service"—meaning it is fully ready and available to rent. If you close on December 15 but renovate through January, your depreciation cannot start until the following tax year. Waiting until November to plan means you risk losing a full year of tax write-offs, even if you closed in 2026.
STR tax strategy requires proactive planning, not last-minute scrambling.
The absolute best way to ensure that you've scoured the best options in your optimal market is to extend the time period, our most recent oceanfront STR is obviously a unicorn property, and it required a consistent search since March for the opportunity to present itself. Since that might not be an option at this stage of the year, draw a larger boundary, expand your immediate prospect area (and buy box) and filter the options prior to any formal tours. If the market is softer - consider prospects that are optimal but the numbers don't work at the current asking price..with the supporting data you could find negotiability of +/- 10% makes the difference and is achievable..as has been for many of our recent luxury investors.
Another idea is to search properties that were withdrawn, cancelled or not sold but listed in the last few years that meet your exact search criteria and area. Your real estate professional can look up the owners and/or connect with the previous listing team to determine if the sellers would consider an off-market sale.
- AJ Wong
- 541-800-0455