Top Locations to Buy Short-Term/Vacation Rentals 2022

[Wilson Vanhook]

I currently own 1 rental property and am looking to expand my portfolio this year. I've done a lot of research recently on STR's and it seems to me like the ceiling for profitability is much higher than with long term rentals.

My question is, what cities/locations in the US have high revenue potential for STR's in 2022? I recently was eyeing a place like South Lake Tahoe, CA. Somewhere with year-round visitors. Lake Tahoe has ski resorts nearby for the winter, hiking, watersports for the summer, etc. But then I found out the state of CA is gonna take their large cut in taxes so maybe Cali isn't the best state for an investment? I also considered somewhere in the Orlando area near the disney parks but maybe there are too many vacation rentals already in the area, capping the revenue ceiling.

I understand AirDNA is available for market research but to my knowledge it's only going to be useful if I find a specific area first and subscribe to that location.

Thoughts? What locations seem like a lock for STR's in 2022?

[Tyler Gibson]

@Wilson Vanhook You have gotten plenty of opinions in here already. I will echo some of what @Shawn McCormick has shared. Orlando saw a very strong demand for short-term rentals this past summer. Particularly the larger 5+ bedroom homes. This should come as no surprise as we are all still hungover from covid and the pandemic and isolation. People want to get back to normal. They want to go on family trips and they are getting together in the most magical place on earth which happens to be in one of the freest states in our great nation (I Love Florida!). All of that heightened demand is without the European and South American tourism that has been a big portion of Orlando tourism in the past. As Shawn said once the planes start flying we will see a new level of demand. Additionally, I think that the increased demand in whole-home short-term rentals is likely here to stay as a result of covid, and consumers wanting a private place to stay. In a crowded market like Orlando the recipe for success is simple, Focus on the client experience and that begins with cleanliness; Have a well-designed and themed house (you don't have to go crazy but try to be unique); Have Amenities to offer, there are a bunch of communities and the amenities they offer are powerful marketing! You are now running a Hotel business and you want to have the nicest one so that when people in Indiana are looking online planning and dreaming about their vacation, they can't help but stop and look at your listing and think about all the things they will do with their "free time" while on vacation. I could probably go on and on but I'll keep it brief.