Buying a Short-Term Rental in Vermont
Did you know that tourism is one of Vermont’s largest industries? We see over 13 million visitors per year, which amounts to about $3 billion dollars spent annually on things like lodging, food, and goods and services. And while Vermont has always been a popular second-home destination, home-sharing sites like AirBnB, VRBO, and Vacasa have gained in popularity, making second homes have quickly become a smart investment strategy
We’ve worked with out-of-state buyers who are looking for a perfect family retreat in Vermont, investors hoping to capitalize on Vermont’s draw for tourists, and even people who are planning their retirement early and hoping to earn some income before they make the move.
Not to mention, Emily owns a short-term rental on Lake Champlain that has been enjoyed by guests for almost two years, so she has first-hand experience in investing in this type of property. You can see her property here: https://www.vacasa.com/unit/109403
While your end goal will be what drives your property search, it’s also important to have an expert who knows the market provide opinions and advice as you look at homes.
Here’s what we think you should keep in mind when starting your search for a vacation home in Vermont:
Location, Location, Location: Find a location that is no more than 10 - 20 minutes away from your targeted area. In Vermont, rentals around lakes and mountains tend to perform the best. The closer you are to the action, the more money you can make.
Know the Market: Do some research. What's hot? What draws people into the area you're looking to invest in? Tourism in southern Vermont is slightly different than northern Vermont, so make sure you do your research before narrowing down your criteria. Then, think about what vacationers in that area would want in a home; tailor your property search to match what your ideal client would want. It’s also important to understand local regulations around short-term rentals in Vermont. Some towns require owners to register before renting.
Research other rentals in the area: Spend some time searching for vacation rentals in the area you’re most interested in. See what their availability is like; a full calendar means guests find that property desirable. You want to try to find a property that has high nightly rates and high occupancy rates. Consider how far that property is from amenities, what types of extras they offer (hot tub for apres ski, anyone?), and keep all of that in mind.
The more the merrier: The more people you can sleep in the house, the better. Friend groups and multi-generation families like to vacation together these days so it’s important to provide a variety of options for sleeping arrangements. Pull-out couches, bunk beds, and even having extra blow up mattresses on hand are all great ways to maximize the amount of people a home can comfortably accommodate.
Focus on the experience: Make your home a place your guests will not only feel comfortable in, but will want to tell their friends about. Add fun things to do outdoors, unusual decorative pieces, or even an Instagram-worthy feature wall. If you’re in the mountains, a hot tub or sauna would add value. Near the lake? Provide kayaks and outdoor games.
Prioritize ease and convenience: Ensuring a homey atmosphere is essential. Achieve this by furnishing the essentials to make guests comfortable. Offer complimentary toiletries, spare toothbrushes, coffee, local maps, dining suggestions, or Wi-Fi access codes to elevate your vacation rental experience.
Rent prices during peak season can range anywhere from $400-$1000 a night, depending on the weekend or holiday.
If you’re ready to start your search for the perfect vacation home, schedule a video consultation with us to discuss how we can help.
