A short term rental ‘Airbnb’ is any home that is rented out for less than 30 days. This has become a preferred way to stay when on vacation in Chelan County (Leavenworth to Lake Chelan) for many people and families.
Covid-19 increased the demand and subsequent need for more vacation rentals throughout Chelan County. This is because in a pandemic people do not want to stay at a highly populated hotel. A short term rental gave them the distance and privacy to vacation during COVID-19.
Traveling using the airlines has dramatically declined especially for travel outside of the United States. When long-distance travel decreases tourism in Chelan County increases. We saw this in 2008-2011 during the Great Recession. People started choosing vacations that were less expensive and closer to home. Tourism has increased in Lake Chelan and Leavenworth for the last 10 years.
This trend will continue and the demands will grow.
The question for you is should you own a Short Term Rental?
The benefits can be amazing. There are vacation rentals that gross near $100,000 a year. On average a short-term rental will be in the $30,000 gross range. The more you use it as an owner the less you will make.
My recommendation to clients is not to own a vacation rental purely as an investment. See it as a hybrid investment. One which generates income to offset or cover all your costs on an asset you and your family get to enjoy.
It is very common for the rental income to cover all expenses taxes, insurance, utilities, dues, and interest.
If you are interested in owning a vacation rental in Eastern Washington reply to this email and tell me the locations and budget you are interested in. Please note vacation rental budgets start at $400,000 and average around $750,000 for a quality rental. This is because location matters most.
If you own a home that you believe would be a good vacation rental reach out to us. We can tell you what you can expect for income as a vacation rental and/or what it is worth if you sold it to one of our clients as a vacation rental.
Nick McLean Real Estate Group