Short Term Rentals for vacation markets outside of NYC

[Kelii K.]

Hi everyone! 

My wife and I are looking into investing in short term rentals in vacation markets surrounding NYC (Catskills, Adirondacks, Poconos, etc) and just wanted to check if anyone here might have some insights they could share. Hoping to learn more about areas you like, the market specific hurdles you’ve encountered and anything else that you like to share would be super appreciated! Ideally, I would like to buy in the Catskills since it’s close by, a popular year round destination from the city and has a history of vacation rentals but I know there’s more and more talks of regulations so I am open to other areas and would love to hear your thoughts/experience on the area.

Would love to connect with anyone who has interest in the area and the short term world as well as agents familiar with STR who could help us in our search.

Thank you!

[Mark Miles]

Quote from @Kelii K.:

Hi everyone! 

My wife and I are looking into investing in short term rentals in vacation markets surrounding NYC (Catskills, Adirondacks, Poconos, etc) and just wanted to check if anyone here might have some insights they could share. Hoping to learn more about areas you like, the market specific hurdles you’ve encountered and anything else that you like to share would be super appreciated! Ideally, I would like to buy in the Catskills since it’s close by, a popular year round destination from the city and has a history of vacation rentals but I know there’s more and more talks of regulations so I am open to other areas and would love to hear your thoughts/experience on the area.

Would love to connect with anyone who has interest in the area and the short term world as well as agents familiar with STR who could help us in our search.

Thank you!

 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 👍👍