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It all depends on the type of property you are looking at. How near is it to major tourism draws? Does it offer any kind of additional experience? How saturated is the area with other similar properties?
Subject Expert
The nicer properties in saturated areas will stay occupied. It’s the low end and “average” properties that will struggle.
There’s definitely a lot of saturation in major vacation markets that was driven by COVID travel restrictions and low interest rates, but unique properties will still do well.
That being said, if you don’t know how to identify or create a unique property in the right market, you’ll probably end up as one of the lower tier properties that struggles.
We’re closing on a property tomorrow that will be used primarily as a short term rental. Incidentally we already have 4 bookings from the Airbnb/vrbo listings we put up over the weekend so are optimistic about the decision. Will likely be a slight net loss in year 1 but hopefully in the green beyond that and will refi once rates float down one day
Subject Expert
AirBNB gives you a boost for your first few weeks / bookings. The struggle is staying booked beyond that. You’ll need to get to 10 reviews quickly to try and get superhost status as that can help with ranking.
What location is your property in?