All Forum Posts by: Mark Shay

Following the lead of other regions, a number of short-term rental owners have banded together not to take legal action but to find ways to promote our STR industry. The Poconos Association of Vacation Rental Owners has launched with a mission to represent and advance the interests of vacation rental owners in the Poconos and advocate for practical short-term rental regulation; while providing members with the educational, networking, and resources they need to run responsible and profitable businesses. For the skeptics who say the region is disjointed and too competitive, this not-for-profit is an attempt to improve the situation.

The association has started working with the Pocono Mountain Visitors Bureau who is recipient of significant sums to hotel tax money to boost tourism and the bureau has pledged to support STR as witnessed by their marketing dashboard on the Poconos

Members of the association value a thriving vacation home rental industry in the Poconos that strengthens the regional economy and maintains the character of vacation home communities and nearby neighborhoods. Poconos VRO Members are committed to operating quality STR's, they believe in being good neighbors. They believe in providing homes that are managed, maintained, and appropriately used in a manner that adds to the value and vitality of our beautiful Pocono Mountains and continues to be a major draw for visitors and the tourism industry.

Following the lead of other regions, a number of short-term rental owners have banded together not to take legal action but to find ways to promote our STR industry. The Poconos Association of Vacation Rental Owners has launched with a mission to represent and advance the interests of vacation rental owners in the Poconos and advocate for practical short-term rental regulation; while providing members with the educational, networking, and resources they need to run responsible and profitable businesses. For the skeptics who say the region is disjointed and too competitive, this not-for-profit is an attempt to improve the situation.

The association has started working with the Pocono Mountain Visitors Bureau who is recipient of significant sums to hotel tax money to boost tourism and the bureau has pledged to support STR as witnessed by their marketing dashboard on the Poconos

Members of the association value a thriving vacation home rental industry in the Poconos that strengthens the regional economy and maintains the character of vacation home communities and nearby neighborhoods. PoconosVRO Members are committed to operating quality STR's, they believe in being good neighbors. They believe in providing homes that are managed, maintained, and appropriately used in a manner that adds to the value and vitality of our beautiful Pocono Mountains and continues to be a major draw for visitors and the tourism industry.

The Poconos have seen a doubling of AirBNB listings over the past three years and yet at the same time we are seeing more people move into the area and turn vacation home communities into extended suburbs of the metro area. There is a short-term surplus of STR availability which I feel will be short-lived as new construction is not coming close to meeting demand from those migrating to the area. Vacation home communities are becoming scarce.

As many others have commented, gone are the days of easy money and you now have to work for it. We are seeing more quality STR properties come to market and those can approach $200K in gross revenue, but they standout. We will see 20% of the homes generate 80% of the earnings as we see a move to quality in the Poconos.

Winter business in the Poconos can be influenced by your distance from one of the main ski resorts (Camelback, Jack Frost/Big Boulder, Blue Mountain, Shawnee). The resorts offer season passes and have ski teams for kids so it is not unusual to have a 10 week booking during the winter season. By definition this seasonal rental is not STR and therefore some don't book these though the booking engines which does challenge the averages and reporting.

Investment Info:

Other buy & hold investment.

Purchase price: $85,000
Cash invested: $85,000

10 acres Vacant Land in PA's Act 319 (Clean and Green) at the last traffic light before the Blue Mountain Ski Resort. Land is zoned Resort Commercial allowing for a hotel, convenience store or similar businesses. Clean and Green means I have reduced taxes in holding the property, back taxes would be due if it were to be developed (maybe $20K). A small price to pay for what might be a very successful hospitality development.

What made you interested in investing in this type of deal?

I am encouraged by the expansion of the Blue Mountain Ski Resort, now a 4-season destination. Lack of nearby hotels/inns is one of the biggest challenges for the resort and hopefully someone will find this land as the ideal spot.

How did you find this deal and how did you negotiate it?

Saw a sign on the property.

How did you finance this deal?

Cash purchase, used a SBA loan, using our vacation home STR as collateral.

Nice work on this list! I agree with you that Lake Harmony area is the first place an investor should consider. It can be complicated with the 5 communities that can join the Boulder Lake Club and homes in Split Rock that aren't actually in a HOA. It's got everything from $250K townhomes to $5 million mansions and great rental histories.

From what I hear, finding quality contractors and craftspeople is not only an issue in the Poconos.   There are national firms like Lowe's, Home Depot and LL Flooring (Lumber Liquidators) with stores in the area who sell installation services and take responsibility for project management and quality assurance.  Not everyone likes this option, but it is an alternative to looking for a local small business.  There are also franchise operations like Stanley Steamer and ServiceMaster here.  

Monroe County, the core of the Poconos has a population over 200,000 and not all of us are hanging out in taverns or spending time in rehab clinics!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350,000
Cash invested: $500,000

Purchased 47 acres of vacant land near the Blue Mountain Ski Resort. Since added a home, a campsite (listed on HipCamp.com) and lots of trails for our vacation rental guests.

What made you interested in investing in this type of deal?

The area around the ski resort is very under developed.

How did you find this deal and how did you negotiate it?

Used a local realtor

How did you finance this deal?

Cash

How did you add value to the deal?

Had a manufactured home added, developed the grounds

What was the outcome?

https://www.vrbo.com/1762782

Lessons learned? Challenges?

Running a vacation home rental property is like running a micro-hotel

As @JohnGeldert has stated, the Townships and Boroughs (municipalities) are the ones to provide the licenses necessary to operate a STR. Places like Blakeslee, Tannersville, Albrightsville, Pocono Summit, Pocono Pines, Pocono Lake are just postal designations, not the names of municipalities. I suggest you look beyond the mailing address to find the legal address and places like Penn Forest Township, Coolbaugh Township, Tobyhanna Township, Tunkhannock Township, Jackson Township, Mt. Pocono Borough, etc. Google Maps will give you township boundaries if you search on the township name.

For anyone who is tracking STR-friendly Pocono communities, Tobyhanna Township, home to more than 800 STR's has just published their STR ordinance.  If you are looking at properties in the area, it is important to understand the difference between mailing address and legal address.  Post offices (zip codes) in the area do not correspond with municipal boundaries, so for every property you are considering, first check to find the township/borough name and then look to their STR zoning restrictions and licensing requirements.