Killington, Vermont is second on Vacasa’s List
Early morning autumn light near Killington, Vermont. Photo taken on a calm tranquil colorful morning during the peak autumn foliage season. Vermont’s beautiful fall foliage ranks with the best in New England bringing out some of the most colorful
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Here’s the latest list of the top 25 places to invest in a vacation rental home from Portland, Oregon-based Vacasa, the largest vacation rental management company in North America. This is the second year, Vacasa has crunched the numbers to determine where to invest. Here’s a look at the top 25 destinations.
Data metrics Vacasa used were “average cap rate, net operating income, median sale price, as well as guest booking data including average nightly and total annual guests.” The result– “The Strongest Performing Vacation Rental Markets Based on Cap Rate.”
Keep in mind some places on the list aren’t typical five-star resort areas. You may not have even heard of several destinations in the top ten. Here they are, listed from one to ten; Sevierille, Tennessee, Killington, Vermont, Davenport Florida, Whittier, North Carolina, Kissimmee, Florida, Dauphin, Alabama, Myrtle Beach, South Carolina, Key West, Florida, Fort Bragg, California and Big Sky, Montana.
Where you get the best potential return for your investment is what to consider here. Thaddeus Hanscom, Vacasa’s head of research and insights looks at the research results this way. “We looked at listings around the country and coordinated all that information. We then had our data science team pull it all together. People contact us every day asking where should, I invest in a vacation home? Investors are often location agnostic. They use our reports to check on markets that want to invest in to see if it’s still a good place to do so,” Hanscom explains.
There were a few surprises Hanscom saw in the 2019 report including the high rankings mountain destinations garnered this year. Three are in the top five including Sevierville, Tennessee, Killington, Vermont, and Whittier North Carolina. Big Sky, Montana came in at number 10.
“We are seeing great value for the money in mountain destinations. Investing in a four-season destination offers the most potential this year for returns in a vacation rental property in areas that are still affordable,” notes Hanscom.
For example, in Whittier North Carolina, located in the popular Smoky Mountains, according to Hanscom you can find a cabin where the median price is $178,000. “That’s a good investment opportunity. Then the buyer can spend extra money on making sure the rental really looks good and is rental ready to maximize the potential income.”
Last year there was a heavier presence from the southeast beach markets in the top five. Though there are several on Vacasa’s list this year. For 2019, Davenport, located in central Florida scored third place while Kissimmee, Florida right near Orlando came in fifth.
Hanscom has some strong take-aways for investors to consider. “Do buy a home you want to stay in with multiple family areas so kids and adults can hang out. Gathering places with large kitchens always appeal to renters.”
Don’t scrimp and buy secondhand furniture. You can be sure your reviews on VRBO and Airbnb will reflect this and keep potential renters away. “It’s all about getting your first ten five-star reviews,” Hanscom confirms. “Don’t make it second class. You want guests to be impressed by the property.
Makes good sense to me as a frequent user of VRBO.