All Forum Posts by: Dale Desmond

People like to travel in family groups (family, neighbor family friends, etc...) and they like sharing a home as opposed to hotel rooms. The shared cost is usually cheaper than a hotel & the benefit is higher. Especially for more than a single night. 

Hey Allison! I have several people I could refer to you. DM me. 

A lot of investors are looking at the St. George/Washington County market. Long-term & vacation rentals are both hot here. Long-term rentals are a safer investment while vacation rentals are higher risk, higher reward. 

Good point, @Tom Wagner. I tell people all the time that it's like small business. If you do you part, things will grow & see profitability assuming you're not "eating from the kitchen" a lot(i.e. staying in the VR too often). :-)

With other travel shut down, (Disney, cruises, Mexico, etc...) the entire west coast came to St.George this summer & it's on EVERYONE'S radar now! 

Here in Washington County, Utah, 4 hours south of Salt Lake City, 2 hours North of Las Vegas, we have plenty of investors who are trying to decide whether to purchase a Long Term or a Short-Term rental (vacation rental or VR). 

To answer that question, you have to look at a few things: What are your goals? Are you planning to do this on your own or hire a company to manage the unit? Where is the home located and what is its condition?
Typically homes that perform well as a short-term rental are zoned for nightly rentals, the more bedrooms the better the nightly rent, are memorable to return guests (private pool, hot tub, theme decorated, ping pong table/foosball/shuffleboard, etc...) Financially, a vacation rental is higher risk (you never know if you'll rent it 30% or 60% of the time), higher reward (some homes grossed $10k+/month this summer & fall). Plus you have a place that's all yours to come stay when you want with your family assuming it's not booked on the days you want to stay! :-) Property management fees are typically around 30%.

Meanwhile, long-term rentals are lower risk (you know you have a well-screened, long-term tenant constantly paying rent), lower reward (hopefully clearing a few hundred bucks a month). A home that performs well is clean, been updated with flooring, paint, molding, landscaping & outdoor areas. Again, a private pool is a huge bonus. Also, the tax benefits are better on a long-term rental. Check with Washington County Assessor's Office on how to get an exemption. Property management fees are around 10% here.

With real estate prices on the rise, both long-term & VRs should continue to appreciate & pay off in the long run but what are your goals? Let that determine your choice in a purchase!

In the UHaul cities, what does the number in parentheses mean?

Occupancy is a strange moving target these days. Before 2020, we had about 35% average in Washington Co. In 2020, it was closer to 75% - 80%. So when people ask "What occupancy can I expect on the new vacation rental I want to buy?", it's a challenge. We are seeing higher occupancy for larger units (4,5,6+ bedrooms) because people travel in family groups & tournament groups & splitting costs on a larger unit. I think 2021 will be strong, but probably not as strong as 2020 IF things open up elsewhere (cruises, Hawaii, Mexico, Disney, etc...). People discovered STG that haven't visited in a while or at all. I really think things will settle in a 45% - 55% occupancy for 2021. Hopefully, it's higher!

@Erik Schofield It's mixed. Lots of guests from SLC like the ease of the Washington units off the freeway plus the proximity to the National Parks. STG offers higher sleep counts & thus bigger groups. 

The laws in Washington City are different than in St. George. Washington used to only allow one manager per community but not anymore. There is still an ordinance that you can only advertise that a VR can sleep up to 10 people unless you have an integrated sprinkler system. In St. George, that's not an issue.