Vacancy Rate for Vacation Cabins in the Blue Ridge Area

[Patrick Hancock]

Hello! For single family residential properties it seems that people use anywhere from a 5-10% vacancy rate when analyzing deals. It would seem that the vacancy rate could potentially be much higher for Vacation cabins in the Blue Ridge area. Any recommendations for a % to use? Thanks in advance! Pat

[Wendy Schultz]

I 100% agree with @John D. Vacancy rate is relevant in long term rentals but less so in short term. Gross rent is far more important to me than vacancy rate. I'd rather our properties rent 50% of the time at a higher rate than 100% of the time at a rate half that. Less wear and tear, less work in management, etc. My biggest recommendation is to make your property stand out from the others so that you don't have to compete on price.