All Forum Posts by: Melissa Wesling

Hi Nate!  I'm not sure of your investment goals, but I have short term vacation rentals in southwest Michigan near the lake and that market is doing well!  

As Alice mentioned above, the families working and learning remotely are still traveling.  "Workcations, flexcations, staycations," or whatever you want to call it, some vacation rental markets are seeing an increase in rentals from last summer.  Data is showing that tourists are choosing "drive to" destinations within a couple hundred miles from home right now.  Travelers are choosing vacation rentals over hotels. People are still traveling, but patterns are changing.   

Nice article! I would add that remote working (workcation?) and online schooling have made for a longer rental season in some areas as some people just want a change of scenery.  I agree that many travelers are opting for a staycation as research shows an increase in bookings from within a couple hundred miles from home.  My STRs are booked in southwest Michigan.  This fall may be our best fall season yet! 

@Ariaan Cardenas depending on the market, some areas are seeing a surge in short term vacation rental bookings right now, even higher than their 2019 occupancy. These areas are mostly rural or drive-to destinations as tourists opt to have staycations within a couple hundred miles of their home. As you research, pay attention to the short term rental regulations in the city/HOA where you are looking. I recommend finding a knowledgeable agent in the area that understands the short term rental restrictions and best locations for a successful rental. It sounds like you are interested in corporate housing, so as mentioned above, consider finding a property that you can try to rent as short term, but that could be used as a long term rental if you needed to switch gears.

Hi John!  Rented, Inc recently did a study that looked at vacation rental areas with the most return on investment, and the Florida panhandle was number one.  South Jersey Shore, The Poconos, Smoky Mountains, and Central Texas were also in the top 5. You had asked for a personal viewpoint (my STRs are in southwest MI which didn't make the list), but I wanted to share these results as you research.   

@Julian Sage May be able to answer some questions about cohosting? 

Hi Jacyln!  We got lucky finding our cleaning person.  The neighbor next door to our vacation rental recommended her cleaning person to us.  She has been with us for almost 13 years and is now our cleaning "manager" and oversees the jobs for us since we manage out of state.  Guests often comment on the how clean the properties are, so I know they continue to do a great job.  There was a miscommunication once where the house was not turned over when a guest arrived.  Since that happened, she texts us when the property is ready so we know it is complete.  I think there is software or apps that help organize cleaning schedules, but what we do seems to be working now!    

Maintenance is another thing.  We have a handyman that is readily available so we prioritize that aspect.  I wouldn't always give him an A+ on his work, but he gets the job done in a timely manner.  Often our cleaning lady will keep us updated on his work as well. 

I love this outlook, great post.  We recently got a 4 star review because our landscaper was cutting the grass during their stay. It's usually cut during turn over day, but this time it wasn't.  At least people reading the reviews will know we take care of the lawn now?! lol 

Kissimmee is a destination that brings in multigenerational travelers, so anything above 5 bedrooms is desirable within a few miles of Disney and is considered prime real estate for vacation rentals.  It draws international travelers who want to stay as close to Disney as possible, so Emerald Island is in a great location for investments.  A downside is that Emerald Island's amenities haven't been updated in a while and a property there will most likely need updating to compete with other 7 bedroom houses in the area.  Windsor Hills or Windsor Westside are good options if you are considering other areas.  Also south facing lots seem to rent at a higher rate.  

My advice is to research the rental regulations in the area.  I believe there are some strict rental ordinances, especially in South Lake Tahoe.  The rental market overall has been a rollercoaster due to Covid restrictions, but research has recently found that bookings on OTAs have recovered to 81% of 2019 levels.  Depending on the location, some rural areas are seeing a more active rental season this year than last.  I self manage my STRs in southwest Michigan, which is usually a summer rental season, but we are on track to have our busiest fall season in 12 years!  

As for analyzing deals, first decide what your investment goals are.  Here are some things to think about: It sounds like you want to buy in an area you like to vacation in.  If that's your dream, then is it okay if your investment breaks even and you accrue equity?  Are you seeking a particular return on your investment? Do you want to diversify your portfolio with a home that will appreciate in value? Are you looking for an investment vehicle that offers tax advantages?  Best of luck!