Is Now a Good Time to Buy a Short Term Rental?
Summary
This article from The Short Term Shop argues that now is a good time to buy a short-term rental due to less competition, softening prices in key markets, and continued tax advantages. Hosts should consider this information when evaluating market conditions and investment opportunities.
Key Insights
- •If you self-manage your property, you can take advantage of the short-term rental tax loophole and bonus depreciation.
- •Fewer homes have been sold in the past two years than at any point in the last three decades, meaning competition is low and buyers have more negotiating power.
- •Markets like the Smoky Mountains, Destin/30A, and Gulf Shores are seeing strong tourism demand, but home prices have leveled or softened, creating an opportunity for investors.
Action Items
- ✓Self-manage your property to qualify for the short-term rental tax loophole.Effort: mediumImpact: high
- ✓Consider negotiating better deals on property purchases, taking your time in due diligence.Effort: mediumImpact: medium
Tools & Resources
- →Short Term Rental, Long Term Wealth: Also check out their books: "Short Term Rental, Long Term Wealth" and "Smarter Short Term Rentals".
- →The Short Term Shop: Check out The Short Term Shop's free resources including "Buying a Short Term Rental on the Emerald Coast" and "The Short Term Rental Tax Loophole".(theshorttermshop.com)
Common Mistakes
- ⚠Many first-time owners fail by not treating their STR like a business, and many properties are hitting the market now because of it.
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Curated by Learn STR by GoStudioM