Are you in the market for your first vacation rental property? There has never been a better time to buy than in 2020. Covid-19 has altered the tourism industry, shifting the demand away from big hotels and toward privately owned homes.
But where should you buy your vacation rental property? The US is a big place with thousands of vacation hot spots. The premise of any suitable rental property is the opportunity for high rental prices and long-term appreciation.
In this article, we've listed the USA's very best areas to buy a vacation rental property in 2020. Enjoy!
The Top 5 Best Places to Buy a Vacation Rental Property
Panama City Beach, Florida
It may have the unflattering nickname or "God's waiting room," but Florida is a vacation rental paradise. Why? 320 days of sunshine and thousands of kilometers of white sandy beaches. Tourists just can't get enough of the Sunshine State.
Panama City Beach is an excellent choice for a vacation rental property. It boasts 27 miles of white sandy beaches, perfect weather all year round, emerald green waters, and is an affordable beach getaway for millions of Americans and international travelers.
In 2019, Rented.com rated "Panama City Beach as one of the most profitable places in America to buy a vacation rental property, with an estimated rental income of $28,800."
Panama City Beach has it all - from beautiful nature to fun nightlife and great dining. The city and its surrounding areas are some of the most popular for visitors seeking fun in the sun. It provides an excellent opportunity for anyone looking for a lucrative vacation rental property.
Other areas of Florida worth considering include Destin 30A, Kissimmee, Orlando, and Tampa Bay.
Smoky Mountains, Tennessee
There aren't many places quite like the Great Smoky Mountains of Tennessee. Some people want to get down to the beach, but millions also want a taste of the mountain life. For those reasons, there are some incredible vacation rental property deals to be purchased in this region of the state.
The area draws about 13 million visitors a year, and is possibly one of the most beautiful locations in the US with plentiful opportunities for fun with hiking, outdoor adventures, and fishing.
Gatlinburg, Pigeon Forge, and Sevierville are consistently ranked as some of the best areas to buy a rental property. In 2019, Rented.com ranked Pigeon Ford as number 1 on its list of "Best Places to Buy," while Gatlinburg trailed close behind with the number 2 spot!
Gatlinburg was also ranked number 1 by Evolve Vacation Rental, and number 3 for best places to buy a rental property in 2020. Similarly, last year, CNBC named Sevierville, Tennessee, as number 1 on their list of best places to invest in the US.
Gulf Shores and Orange Beach, Alabama
Together, The Gulf Shores and Orange Beach areas of Alabama have over 32 miles of incredible white sand beaches with crystal clear blue waters. And both are ideal vacation spots for travelers and avid fishermen.
The number of people flooding to these parts of Alabama has rapidly grown annually for half a decade. In 2016, that number was 25.8 million and has grown since then, breaking records. In 2018, a record number of 27.7 million tourists spent a whopping $15bn in Alabama.
All those visitors need somewhere to stay, making the vacation rental property opportunities in the south of the state extremely lucrative. Existing property owners utilize websites like VRBO, Airbnb, and TripAdvisor to make the most of these record numbers of tourists. Therefore, don't miss out!
South Jersey Shore, New Jersey
In Rented.com's 2020 report on the best vacation rental properties, South Jersey Shore was listed as number 2, second only to the Florida Panhandle. Why? Jersey Shore is a hugely popular area for American vacationers. It is host to some incredible entertainment activities and a vast number of nearby beaches.
Long Beach is a particular highlight, with access to the best beaches, cafes, bars, restaurants, and nightlife. Those interested in nature can go on ocean adventures, including snorkeling and exploration of native marine life.
Jersey Shore has a bit of everything and at a reasonable price, making it a trendy destination. Some areas worth considering include Weehawken, Bayonne, Summit, and Stone Harbor.
If you drive five hours north of New York City in the direction of Vermont, you will arrive in Killington. It is a place of incredible natural beauty, including snow-capped mountains, vast lakes, winding rivers, and ancient forests. Killington is an outdoor person's paradise, and millions flood here every year for abundance of fresh air and the great outdoors.
This also makes it a hot area for vacation rental opportunities. Killington has a huge number of stunning cabins, chalets, and big, traditional homes to be snatched at a reasonable price. With annual income around $39,000, it is rated number four on Rented.com's 2019 list of top places to buy vacation rental property.
Killington is popular among skiers and snowboarders in the winter time, but it's also a top destination in the summer. This means property owners have a full year of rental opportunity, making Killington a lucrative opportunity.
The Poconos, Pennsylvania
The Poconos Mountains in Pennsylvania are rapidly becoming one of the most popular vacation destinations in the USA. This is all thanks to its top vacation resorts, natural areas of beauty, massive list of fun activities, over 150 lakes, and its quaint historical American towns.
Cottages and condos are extremely popular with visitors, providing property owners with an excellent opportunity for rental income. The Poconos is a family favorite, and wholesome fun is to be had at every turn.
According to Rented.com's 2020 list of Best Places to Buy a Vacation Rental in 2020, The Poconos ranks number 3 in the US. Rental income in this area is estimated at approximately $22,000 per year.
Central Texas, Texas
According to Rented.com, Central Texas is the 5th best place to buy a vacation rental property in the US. Over the last decade, Texas has seen incredible growth in population, job growth, and tourist numbers, making it an ideal place for purchasing rental property.
For tourists, Texas is a unique place full of adventure and fun. The cities have become more metropolitan, and due to the increased number of people moving to the big cities, there is no shortage of nightlife and activities.
The best places to buy a vacation rental property in Texas, according to Mashvisor, are:
- Round Rock
- Corpus Christi
Airbnb rental income is particularly lucrative in Texas, opening the door for a profitable opportunity for buyers. In some cases, Airbnb rental income is double that of traditional rental income.
If you're in the market for a vacation rental property, there are plenty of great opportunities out there just waiting to be snapped up. Before deciding on any specific location area, make sure you do your due diligence and research everything in fine detail.
If you need help finding vacation rental property in the US, speak to The Short Term Shop for more advice and guidance. Getting support for your vacation rental property purchase is truly advisable. We can help you with everything, from the initial interest exploration to the point of purchase, as well as training you on how to manage your vacation rental remotely (without having to hire expensive property managers).
Simply contact us at 800.898.1498 or email us at email@example.com to speak to one of our professional team members. We look forward to assisting you!