The demand for vacation rentals has gone up rapidly as many companies shifted to remote and hybrid work settings. However, to earn the best possible profit from vacation rentals, one must evaluate and choose a location wisely.
If you are also interested in getting into this money-making business, then we are here to help! Have a go through this article as we reveal the best places to start a vacation rental business.
The Best Locations to Start a Vacation Rental Business
1. Gatlinburg, Tennessee
Located just 8 miles away from Sevierville, Gatlinburg is an excellent tourist destination. What makes this place unique is that this area is not so swamped with hotels as most other tourist destinations. This is why there is a lower level of competition between the hotels and the vacation rentals.
Gatlinburg is popular for its car events, theme parks, hiking, and shopping opportunities. This is not everything, the place has to offer many other wonderful things as well! One of its biggest attractions is the Great Smoky Mountains Park, known as one of the most popular national parks in the United States. There are many other exclusive attractions within close proximity, including Ober Mountain, Anakeesta Adventure Park, and more.
All these attractions are luring more people into the city, which is resulting in a rapid increase in home prices. With an amazing cap rate of 9.2% and a delightful occupancy rate of 74%, Gatlinburg appears to be one of the best places to invest in the vacation rental business.
2. Bethany Beach, DE
Bethany Beach is highly preferred by people who look for a "comfort zone" away from the hustle and bustle. The peace and tranquility of this place are on another level, and the year-round moderate temperature makes even more people attracted to this place. You can already assume that the demand for vacation rentals is on the rise in this place, but the good news is Bethany Beach listings still come at an affordable price range!
Bethany Beach is a place that complements both a laid-back and an activity-filled lifestyle. Tourists often enjoy a lazy stroll down the iconic boardwalk of the town or spend some quality time in local establishments such as shops, eateries, and more. The experience of enjoying live music while watching the gentle waves is a memory that many people cherish for a lifetime.
Bethany Beach is also famous for Captain Jack’s Pirate Golf, dolphin-watching cruises, and the Fenwick Island Lighthouse. All these make you realize the actual reason behind the high demand of vacation rentals in this town.
There is indeed a high demand for vacation rentals in Bethany Beach, especially over the peak summer season. There are excellent income opportunities during the Fall and Spring seasons as well. While you need to pay around $821,00 for a typical home in Bethany Beach, the return is highly likely to surpass the investment by a big margin.
3. Gulf Shores, AL
Thanks to the amazing seaside-town vibes and one-of-a-kind hospitality, Gulf Shores bring in around 8 million visitors each year. While the occupancy peaks during the summer season, the year-round warmth welcomes visitors over the spring and fall as well.
People love to bask on its tranquil beaches over the day and enjoy the freshly caught seafood at night. Gulf Shores also offers excitement-filled amusement parks, bottlenose dolphins, and a diverse range of water sports.
All these offerings bring in thousands of tourists and let you enjoy a 6.09% cap rate and $4,419 average rental income/month from this place. The median home value is affordable too just at 475,000!
4. Savannah, GA
Savannah is a top market to earn some good returns from vacation rental Investments. An increasing travel demand has resulted in a rise in profit potential for owners here.
The historic district attracts a large number of travelers each year. Many beautiful parks, museums, riverfront dining, and cobblestone streets add to the unique beauty of this place.
Savannah also boasts an epic nightlife, which is why bachelorette parties and other group celebrations are common here. All these offerings allure people from different places of the country to Savannah. With a cap rate of 8.2% & median rental revenue of $41,795, Savannah offers an excellent return on your investment!
5. Bar Harbor, ME
Bar Harbor is often referred to as the best destination for people who love diversity. This is a place that offers excellent mountains and coastal views, a combination tough to find anywhere else! The town has massive popularity for its stunning natural beauty as well as its tantalizing seafood. The southwest part of the town has the famous Acadia National Park, home to amazing wildlife and beautiful cobble beaches.
While the median home price is around 494,000 in Bar Harbor you can enjoy a cap rate of 7.28% here. The occupancy rate will surprise you too, as it is 90% while 40% of the rentals show occupancy of 4-6 nights at minimum.
We hope that by now you have got an idea of the best locations to start a vacation rental business. Just go with the one that matches your preference and convenience, and ensure top-class property management to get the most out of it!
