What are some of the best markets for Air BNB

[Nick Troutman]

I am very much intersted in growing my Air BNB rentals. What do you feel are some of the best markets for Air BNB? I have been trying the Pigeon Forge/ Gatlinburg market but I've been out bid on EVER offer in the past 12 months (and I'm always over asking price). I'd love some insight for all of you in the BP community. 

Thanks so much,

Nick

[William Beck]

I would still consider those areas to be tops. I spoke with consultants at my job position and they were in agreement on the market areas but would add Broken Bow to the top of the list as well. I think the deals have become a lot more challenging to find now vs. 6 months ago. We might get to a point here where inventory levels will start to free up though since all of these market areas are ending their peak season within the next month or two but I would be very cautious regarding what the sellers of these properties are asking vs. what they are earning. @Carly M.

[Carly M.]

@William Beck Appreciate your response! That's consistent with what I've heard from some local agents. Thank you. 

[Jennifer Hernandez]

@William Beck thanks for your input! I am currently looking at the poconos market and everything on BP is 90% of the time people recommending against it. They say its a terrible place to invest, but living 2 hours away in nyc it is where almost every single person I know goes to get away. I've taken multiple trips and you always see people out there because of the convenience of location. Just doing the research now on getting an STR permit making sure we follow ordinances.

[Tameka Brown]

Hi Jennifer, a lot people come here because it completely different from NYC. Most people comes to have house party or just enjoy the peace and quite. Yes, the STR has taken off his 2020. I am surprise people are telling you not come here, when investors are calling homeowners asking if they are selling there home. They are still invests looking buy here constantly.

[Gururaj Iyer]

Numbers do not lie , I operate 2 in Poconos & I can tell you for a fact that the market has oversaturated . The number of folks posting available advertisements for NYE was a clear red flag ... Unless you get a great deal in a good community/HOA - waterfront , ski in - ski out.. Poconos is definitely seeing a huge huge dump of inventory hitting .. 

Originally posted by @Jennifer Hernandez:

@William Beck thanks for your input! I am currently looking at the poconos market and everything on BP is 90% of the time people recommending against it. They say its a terrible place to invest, but living 2 hours away in nyc it is where almost every single person I know goes to get away. I've taken multiple trips and you always see people out there because of the convenience of location. Just doing the research now on getting an STR permit making sure we follow ordinances.

[Steven Ruff]

Poconos is great if your STR checks off all the boxes. Privacy, lake access, to name a few. You have to be better than the rest to make more money than the rest. Or at least advertise better!

[Mark Miles]

In 2019 there were 10,000 homes for sale in the Poconos. In 2020 and 2021 during the Covid pandemic, folks from Nyc and Philly bought them all up. And they turned about 5,000 of them into Airbnbs. This has caused at least 3 major problems: 1) the market is now oversaturated with Airbnbs, 2) rental rates have come down bc of so much competition, 3) there's a dire shortage of workers available to service the huge increase in the # of Airbnbs.

Wait times are often a month or longer for service providers. I have a friend who needs an electrician & has been waiting a month. He had to cancel all of his reservations until he can get an electrician. Another friend's hot tub has been out of commission for over a month while he awaits a hot tub repairman. He has had to give refunds bc of a non-working hot tub. Another friend needs to renovate his house but can't get anyone to do it, it's brutal.

Plumbers, roofers, lawncare, there's no one available to do this work bc there's waaayyyy too many Airbnbs for the local labor market to support.

Not to mention the dire shortage of cleaners and handymen. Home prices have shot up in the Poconos, there's very few homes for sale, there's bidding wars on the few homes that are for sale, and there's a drastic shortage of available workers. Not an ideal place to run a business but good luck if you wanna try it!

Personally, as someone who lives near the Poconos, I would recommend the mountains of VA, NC, or TN. Or the beaches of NC, SC, GA, FL, AL, MS, or TX. I've built quite a little nest egg investing in some of those markets 👍👍 My ADR (avg daily rental rate) is $811/night in those markets 💪 Of course, I buy nice houses and YMMV.

[Matt "Roar" Gardner]

@Ifeanyi Umezurike What do you have to offer?