Vacation rentals have become a popular investment option for many people in recent years. With the rise of platforms like Airbnb and Vrbo, it’s easier than ever to rent out a property to travelers and earn some extra income. However, not all locations are created equal when it comes to owning a vacation rental. Some areas have more demand than others, and certain factors can make a property more attractive to renters.
For those considering investing in a vacation rental, it’s important to do some research and find the best places to buy. Factors to consider include the local economy, tourist attractions, and the availability of property management services. By choosing the right location, investors can maximize their profits and ensure a steady stream of renters.
In this article, we will explore some of the best places to own vacation rentals in 2023. We will provide insights into the top locations based on factors such as rental income potential, popular tourist destinations, and overall market trends. Whether you’re a seasoned real estate investor or considering your first vacation rental purchase, this guide will help you make an informed decision and find the perfect location for your investment property.
Location
When it comes to owning a vacation rental, location is key. Choosing the right location can make or break the success of the rental.
There are several factors to consider when selecting a location, including proximity to attractions, accessibility, and the overall appeal of the area. Below are some popular location options for vacation rentals:
Coastal Areas
Coastal areas are a popular choice for vacation rentals, especially during the summer months. These areas offer beautiful beaches, water activities, and a relaxing atmosphere. Some of the top coastal areas for vacation rentals include:
- Myrtle Beach, South Carolina
- Destin, Florida
- Outer Banks, North Carolina
Mountainous Regions
Mountainous regions are a great choice for vacation rentals all year round. In the winter, they offer skiing and other winter sports, while in the summer, they offer hiking and other outdoor activities. Some of the top mountainous regions for vacation rentals include:
- Aspen, Colorado
- Park City, Utah
- Lake Tahoe, California
Urban Centers
Urban centers can also be a great choice for vacation rentals, especially for those who prefer city life. These areas offer a variety of attractions, including museums, restaurants, and shopping. Some of the top urban centers for vacation rentals include:
- New York City, New York
- San Francisco, California
- Chicago, Illinois
Property Types
When you’re looking for short-term accommodation, you have lots of property types to choose from. Whether it’s a holiday home, serviced apartment, villa or bungalow, BnBFriendly is here to help. With the widest selection of temporary rental homes in over 100 countries and more than 500 cities worldwide, we make sure that your perfect home away from home is just a few clicks away. We also ensure that our properties are both affordable and luxurious – so no matter what your budget is, you’ll find something that suits your needs.
Single-Family Homes
Single-family homes are a popular choice for vacation rental properties. They offer privacy, space, and comfort for families or groups traveling together. These homes typically have multiple bedrooms, bathrooms, and common areas, making them ideal for larger groups. They may also have outdoor amenities such as a private pool, hot tub, or barbecue area. When considering a single-family home for a vacation rental, it’s important to choose a location that is popular with tourists. This could be a beachfront property or a home located near popular attractions or outdoor activities. It’s also important to consider the cost of maintenance and upkeep for the property, as well as any zoning or permit requirements.
Condos and Apartments
Condos and apartments are another popular choice for vacation rentals. They offer a more affordable option for travelers, as well as a convenient location in urban areas or near popular attractions. These properties typically have one or two bedrooms and a common living area, making them ideal for couples or small families. When considering a condo or apartment for a vacation rental, it’s important to choose a property that is well-maintained and has modern amenities such as a pool, gym, or parking. It’s also important to consider the rules and regulations of the building or complex, as well as any fees or assessments that may be required.
Cabins and Cottages
Cabins and cottages are a popular choice for vacation rental properties in rural or mountainous areas. They offer a cozy, rustic atmosphere and often have outdoor amenities such as a fireplace, porch, or hot tub. These properties typically have one or two bedrooms and a common living area, making them ideal for couples or small families. When considering a cabin or cottage for a vacation rental, it’s important to choose a property that is well-maintained and has modern amenities such as heating and air conditioning. It’s also important to consider the location of the property and any access or transportation issues that may arise.
Investment Potential
Vacation rental properties can be a great investment opportunity for those looking to generate rental income and build equity. However, not all locations offer the same investment potential. When considering where to purchase a vacation rental property, it’s important to take into account factors such as tourist demand, seasonal trends, and regulatory environment. Here are a few tips for selecting the best possible rental property investment:
Tourist Demand
One of the most important factors to consider when investing in a vacation rental property is the level of tourist demand in the area. Properties located in popular tourist destinations tend to have higher occupancy rates and rental income potential. Some of the top tourist destinations in the US include Orlando, Florida, Gatlinburg, Tennessee, and Bar Harbor, Maine. These locations offer a wide range of recreational activities and attractions that draw in tourists year-round.
Seasonal Trends
Seasonal trends are another important consideration when investing in a vacation rental property. Some locations may be popular during certain times of the year, but experience a drop in demand during the off-season. For example, a property located near a ski resort may be in high demand during the winter months but may struggle to attract renters during the summer. On the other hand, a property located near a beach may be in high demand during the summer but may struggle to attract renters during the winter months.
Regulatory Environment
The regulatory environment is also an important factor to consider when investing in a vacation rental property. Some cities and states have strict regulations on short-term rentals, which can limit the potential rental income of a property. It’s important to research the local regulations and restrictions before purchasing a property. Some cities, such as Nashville, Tennessee, and New Orleans, Louisiana, have implemented strict regulations on short-term rentals, while others, such as Kissimmee, Florida, have more relaxed regulations.
Management Considerations
When owning a vacation rental, there are several management considerations to keep in mind. This section will cover self-management vs. professional management, marketing and advertising, and maintenance and upkeep.
Self-Management vs. Professional Management
One of the first decisions a vacation rental owner must make is whether to self-manage or hire a professional management company. Self-management can save money on management fees, but it also requires more time and effort from the owner. On the other hand, hiring a professional management company can be more expensive but can provide peace of mind and professional expertise.
Some factors to consider when deciding between self-management and professional management include:
- The owner’s availability and willingness to handle day-to-day operations
- The owner’s experience and knowledge of the vacation rental industry
- The owner’s proximity to the vacation rental property
- The owner’s budget for management fees
Marketing and Advertising
Marketing and advertising are crucial for attracting renters to a vacation rental property. Some tips for effective marketing and advertising include:
- Creating a professional website with high-quality photos and detailed information about the property and surrounding area
- Listing the property on popular vacation rental websites such as Airbnb, VRBO, and HomeAway
- Using social media platforms to promote the property and engage with potential renters
- Offering special promotions or discounts to attract renters during slower seasons
Maintenance and Upkeep
Maintenance and upkeep are essential for keeping a vacation rental property in top condition and attracting repeat renters. Some tips for effective maintenance and upkeep include:
- Creating a maintenance schedule and sticking to it
- Regularly inspecting the property for any needed repairs or upgrades
- Providing guests with clear instructions for operating appliances and electronics
- Hiring a cleaning service to ensure the property is thoroughly cleaned between guests
12 Best Places To Buy Vacation Rental Property in 2023
Orlando, Florida
Orlando, Florida is a popular vacation destination with attractions such as Walt Disney World, Universal Studios, and SeaWorld. According to Mashvisor, the median property price in Orlando is $344,000, and the average rental income is $2,200 per month. With a cap rate of 4.8%, Orlando is a great place to invest in a vacation rental property.
Tampa, Florida
Tampa, Florida is another popular vacation destination with attractions such as Busch Gardens and the Florida Aquarium. The median property price in Tampa is $333,000, and the average rental income is $2,100 per month. With a cap rate of 4.6%, Tampa is a great place to invest in a vacation rental property.
The Poconos, Pennsylvania
The Poconos, Pennsylvania is a scenic mountain region that attracts visitors year-round with activities such as skiing, hiking, and water parks. The median property price in the Poconos is $225,000, and the average rental income is $1,700 per month. With a cap rate of 5.5%, the Poconos is a great place to invest in a vacation rental property.
Jacksonville, Florida
Jacksonville, Florida is a coastal city with attractions such as the Jacksonville Zoo and Gardens and the Museum of Science and History. The median property price in Jacksonville is $255,000, and the average rental income is $1,800 per month. With a cap rate of 4.2%, Jacksonville is a great place to invest in a vacation rental property.
Berkeley, New Jersey
Berkeley, New Jersey is a small town on the Jersey Shore with attractions such as Island Beach State Park and the Berkeley Island County Park. The median property price in Berkeley is $269,000, and the average rental income is $1,800 per month. With a cap rate of 4.1%, Berkeley is a great place to invest in a vacation rental property.
Temecula, CA
Temecula, California is a city in Southern California known for its wineries and hot air balloon festivals. The median property price in Temecula is $540,000, and the average rental income is $2,900 per month. With a cap rate of 4.1%, Temecula is a great place to invest in a vacation rental property.
Gulf Shores, Alabama
Gulf Shores, Alabama is a beach town on the Gulf of Mexico with attractions such as the Gulf State Park and the Alabama Gulf Coast Zoo. The median property price in Gulf Shores is $400,000, and the average rental income is $2,300 per month. With a cap rate of 4.4%, Gulf Shores is a great place to invest in a vacation rental property.
Levittown, Pennsylvania
Levittown, Pennsylvania is a suburban town outside of Philadelphia with attractions such as the Sesame Place theme park and the Bristol Riverside Theatre. The median property price in Levittown is $280,000, and the average rental income is $1,800 per month. With a cap rate of 4.3%, Levittown is a great place to invest in a vacation rental property.
North Las Vegas, NV
North Las Vegas, Nevada is a city in the Las Vegas metropolitan area with attractions such as the Aliante Nature Discovery Park and the Craig Ranch Regional Park. The median property price in North Las Vegas is $310,000, and the average rental income is $1,900 per month. With a cap rate of 4.6%, North Las Vegas is a great place to invest in a vacation rental property.
Englewood, Colorado
Englewood, Colorado is a suburb of Denver with attractions such as the Museum of Outdoor Arts and the Pirates Cove Water Park. The median property price in Englewood is $420,000, and the average rental income is $2,100 per month. With a cap rate of 4.3%, Englewood is a great place to invest in a vacation rental property.
Covington, Georgia
Covington, Georgia is a small-town outside of Atlanta with attractions such as the Georgia International Horse Park and the Oxford College of Emory University. The median property price in Covington is $240
Conclusion
Investing in vacation rentals can be a lucrative opportunity for those who choose the right location. From the sunny beaches of Florida to the mountainous regions of Colorado, there are many destinations to choose from that offer a high return on investment.
Based on the research, it is clear that some of the best places to own vacation rentals in 2023 include Tampa, Florida; Scottsdale, Arizona; and Wisconsin Dells, Wisconsin. These locations offer a combination of high rental income, occupancy rates, and property appreciation potential.
It is important to note that investing in vacation rentals requires careful consideration and planning. Investors should research the local market, understand the regulations and taxes, and have a solid business plan in place before making a purchase. Additionally, investors should be prepared to manage the property or hire a reputable property management company to ensure the success of their investment.
Overall, owning a vacation rental can provide a steady stream of income and potential for long-term appreciation. With the right location and strategy, investors can capitalize on the growing demand for vacation rentals and enjoy the benefits of passive income for years to come.