Rented.com has released its fourth annual report on the 150 Best Places to buy a Vacation Rental Property in 2019. The report details the most profitable cities for rental property investment by scoring on the bases of home ownership cost and short-term rental potential.
Though the alternative accommodations market is continuing to experience a period of growth, it can be daunting for the newcomer. Rented.com’s “Best Places to Buy” is designed to be a simple guide which provides an overview of the big-picture short-term rental market.
The top 5 markets in 2019 include:
- Pigeon Forge, Tennessee
- Gatlinburg, Tennessee
- Panama City Beach, Florida
- Killington, Vermont
- Palm Coast, Florida
This year’s list illuminates some shifting trends in the short-term rental space, such as more “traditional vacation destinations” coming back into the top tier and the Midwest gaining 3 more spots in the top 25.
The South continues to reign supreme with 15 of the top 25. More specifically, Tennessee is becoming a major hot spot with Pigeon Forge, Gatlinburg, and Sevierville all cracking the top 10. The Midwest trending upwards may be an indication of the overall strength of the alternative accommodations market. It may be that one no longer has to live near a beach, ski resort, or bustling city to have a successful rental property. The lower cost of homeownership in the Midwest in combination with the universality of the overall alternative accommodations market could be an early indicator of more strong rental markets for middle America.
Urban markets are falling further down (and off) the “Best Places to Buy” due to cumbersome and confusing regulatory practices being introduced. Though urban markets can be versatile and lucrative when the regulations are either nonexistent or simple, many potentially strong markets are now experiencing long, drawn-out regulatory battles. This complication makes long term investment difficult and, in many cases, unwise. Traditional “vacation destinations” tend to be me more receptive to alternative accommodations and therefore have climbed higher up the 2019 list.
Rented.com is in a slightly different position as compared to where they were when they released their 2018 report. While they still are using their $125M Rented Capital fund to offer guaranteed income to homeowners, they are now shifting to a more all-inclusive focus. They now offer a product that allows for guaranteed annual income and unlimited revenue upside for the owner.
In conjunction, they also offer a valuable suite of services to property managers which allows these managers to be as productive and resourceful as possible. These managers become Rented.com Certified Property Managers and help owners make the most of their rental properties. Rented.com hopes to bring everyone within the alternative accommodations space closer together in order to achieve the clear goal of creating successful rental properties that offer unique guest experiences.