Worldwide: Rented.com, the world’s largest platform connecting homeowners with short-term rental managers, has released a list of the best places in the United States to own a vacation rental property in 2019.
The list is based on the short-term rentals in locations that are considered to have a strong ROI for owners and investors, in relation to Rented.com’s most recent report, “When buying a rental property, for investment purposes, what are the best markets?”.
Ranking 150 destinations, the list includes some affordable locations as the best places to own a vacation rental. The destinations at the top are Pigeon Forge, Tennessee, Gatlinburg, Panama City Beach, Florida, Killington, Vermont, and Palm Coast, Florida.
The criteria pointing to short-term rental profitability include real estate prices, local vacation rental rates, insurance, taxes, maintenance expenses and the popularity of a tourist destination.
Rented.com CEO Andrew McConnell said: “The south east did extremely well this year, especially in non-luxury markets like the Smokey Mountains. There they have very friendly short-term rental regulations, it’s a four-season market and a five-hour drive from several major cities.
“The take-aways I found the most interesting and where the biggest shift was is how urban destinations fell off as a good investment. A year or two ago, some had the highest ROI and that’s fallen dramatically,” he added.
Major US cities like Chicago and Boston have been at the heart of a controversy surrounding vacation rental regulations, which have brought down the popularity of urban areas as potential investments.
As short-term rental options like VRBO and Airbnb continue to gain more traction, Rented.com is also looking at the local climate for regulations, which have in some cases prohibited or restricted short-term rentals.
Florida came out on top of the list as the state with most destinations at 19, while California came in with 13 destinations, however due to high real estate prices, there were none ranking higher than 44 on the list of 150.
Meanwhile, Texas came in at third spot with nine cities as areas that have a milder winter usually experience a longer tourist season.
Rented.com said it would encourage the following: “Identify opportunities in markets where asset prices are low relative to the market’s attractiveness as a vacation destination. Obtain a clear and thorough understanding of necessary improvements, as well as maintenance, property tax, insurance, HOA, and other costs.
“Seek out markets with a strong vacation and or rental markets. Learn about the communities’ regulations regarding rentals properties,” it added.
The website also advised travellers looking for condos to check all documents for assessment history, reserves and the expected lifetime of basic structures such as roofs and roads.
For more information on Rented.com’s list with the 150 best places with rankings, scores and estimated rental income on vacation rentals, visit the website here.