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.
More from Getting Started
This article from GreekReporter.com reports that Greece is climbing the European short-term rental rankings. While specific details on the rise are not provided in this short article, this suggests a growing opportunity for hosts. It implies increased demand in the Greek market, which presents a dynamic opportunity for STR investors.
Ennismore plans to expand its hotel presence in India, with its first hotel under the Morgans Originals brand, Roswyn, already soft-opened in Mumbai. Following the Mumbai debut, the company plans to open a Hoxton hotel in Bengaluru and is actively exploring further expansion opportunities, recognizing the market's readiness for a luxury lifestyle product.
The short-term rental market's growth is slowing, according to eKathimerini.com. This shift may affect occupancy rates and revenue for hosts. Understanding market trends is crucial for adapting pricing and marketing strategies, ensuring continued profitability.
Curated by Learn STR by GoStudioM