Is Owning a Home the Right Choice for You?The last thing I want to do is sell you a home when you should really be renting. Yes, I said it, you might be better off renting. Let's figure
Short Term Rental Investments In The Pennsylvania Pocono Mountains
"Don't put all your eggs in one basket." You've heard this saying before, it needs little explanation. You can't build a life of wealth on a single stream income. Some of the finest financial experts and self-made millionaires will tell you, in order to get ahead financially, you need to generate multiple streams of income. Real Estate investment has been one of those streams of income used historically by millionaires across the world. With the invention of Airbnb and Homeaway and the explosion of people wanting a more personal and cozy vacation experience, the short term rental has become all the craze.
Lets look at some statistics:
24%- The average percentage of total income a homeowner generates by renting out their short term vacation rental. (VRMA)
1500- The median square footage of rental properties. (VRM Intel)
13 million- Revenue produced in the United States from short term vacation rentals in 2018. (statista.com)
33%- The percentage of investors who purchased their home in a resort area. (VRM Intel)
7.2%- The expected revenue growth rate per year in short term rentals to the year 2023. (statista.com)
Ok, I've got your attention. This is not a passing trend. More and more people are jumping on the bandwagon with increasingly good financial outcomes.
So, lets take a look at what makes a great vacation rental. Some homes will see more success than others. When you start looking for your investment home, keep these things in mind. The WHO, WHAT, WHEN, WHERE, WHY and HOW model of Short Term Rental, Real Estate Investment in the Poconos.
WHO- Who is going to use your rental? The first person on that list should be YOU! You should use your vacation rental. The best way to get the biggest bang for your buck is if you are enjoying your investment yourself. Spending time in your investment allows you to take pride in ownership. While you are there, you can use that time for relaxing and having quality family time as well as a more practical way to address maintenance concerns, ascertain what additions your home may benefit from, (Gee- maybe we should get a pool table) and create quality relationships with your neighbors and the community staff (so they're not so quick to jump at you when you have a noisy renter.) The second person on that list is your renter. Most short term renters in the Poconos will be within a few hours driving distance. This is what makes the Poconos such a hot vacation destination. The Poconos is within two hours of most metropolitan areas including most of New Jersey, New York City, and Philadelphia. People who have their primary residence in these areas will be your primary renters.
WHAT- The "What" is your actual house. Most homes that can sleep 6 or more people will do OK in the rental business. Your best bet though, is to purchase a home that will accommodate more than one family. That's two bedrooms with queen or king sized beds, and a bedroom with bunks for kids. A three bedroom house could accommodate up to 10 people with a pull out couch or futon. Most people coming to the "country" for vacation want to stay in a "country" home. That means you will rent a chalet, or log home more times and for more money than a ranch home. Multiple levels of living space also allows for a more comfortable vacation for multi families. It is not uncommon to see homes that rent well with a layout of three floors. If you can add some extras, it will serve you well. Pool tables, hot tubs, shuffle board, gaming consoles, registered kayaks or canoes, or a golf cart (if permitted) will pay for themselves.
WHEN- There is no better time than the present! The Poconos is a four season vacation destination. Winter- Skiing, boarding, tubing, sledding, Indoor water parks; Spring- Flea markets, antiquing, outlet shopping; Summer- Outdoor water parks, lakes, boating, fishing, swimming: Fall- Foliage, apple picking, pumpkin patches, and hay rides. No matter what season, people come to the Poconos. Holiday's and four day weekends will be hot sellers. Depending on your homes appeal, you may be able to bump your rates up for special dates. (Don't forget Race weekend! That's a major holiday here!)
WHERE- Where you look for your home. Yes, I know you're considering the Poconos but the Poconos is a region that encompasses 2400 square miles! Look for areas that are no more than 30 minutes from a major highway. Most people will be driving to your home from the metropolitan areas of New York, New Jersey and Philadelphia. Making sure your property has that "out in the country" feel, but is still accessible to major travel routes is crucial. In addition, there are short term rental laws and regulations in each municipality of the Poconos, and most communities themselves have their own regulations on short term rentals. The last thing you want to learn after you buy a house is that you can't rent it! Make sure you are working with a Real Estate Agent that is cognizant of these things, and always do your own research as well. Another "Where" should be the community where you decide to purchase. There are several amenity filled communities that allow you to transfer those amenities to your renters (sometimes for a price, sometimes not.) Many vacationers will choose your home not only because it's a beautiful house that will accommodate their family but because they have access to the communities amenities. Pools, Lakes, Fitness centers, etc. When deciding where to purchase keep in mind that every community with amenities has yearly dues. You will have to weigh the accessibility to amenities with the cost of amenities.
WHY- If you've read this far, you already get the gist of why you would want to own a vacation rental in the Poconos. It's an opportunity to be able to vacation whenever you want while increasing your yearly revenue. Some people choose only to rent out their home as many times as it takes to cover the homes yearly expenses. Some people rent it out consistently and take only a week or weekend for themselves. Regardless of what YOU choose to do, if you make a wise investment, you can't go wrong.
HOW- You may be asking yourself, how do I do all this? Most of my clients are second home/vacation home buyers. I will help you every step of the way to purchase your home. If you think it has to be an extravagant investment to be successful, it doesn't. Many vacation homes can be bought for under $200, 000. After you find your perfect home, Pocono Mountain Lakes Realty has a rental program we can get you set up with and then you can relax while we book your home for you. Or, if you choose, you can do that yourself. The possibilities are endless.
Call me/text me/ email me today, and lets get started on your investment.
Hello! My name is Tami Almquist. I've lived in the Pocono Mountains since 1984, after moving with my family from New Jersey to Paradise Valley while still in grammar school. I obtained my Bachelors of....
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