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Updated about 3 years ago on . Most recent reply
Short term rental at a resort? Rental pool
I've been looking into doing some STR in the area I've narrowed in on. This area has multiple resorts near Mountain Creek in Sussex County NJ. The only downside is that I can't AIRBNB these units out, the resorts offer an option to enter your unit into what they call a rental pool. I have no experience with this and wondering if anyone can provide any input on how this works. I imagine they just book the rooms for you, clean and manage them.
My main question is, does anyone have any experience with this type of rental? Has it been lucrative? It seems like the resort has a built-in property management and cleaning team. Any input would be greatly appreciated, thanks!
Most Popular Reply
There are many of these where I invest, I have analyzed many of them. While it is a great passive investment, the fees for leasing and management can be upwards of 30-40% which wipes away most profit. The units generally will produce income, however usually at a 3-6% CoC rate that is more suited for families looking to subsidize their vacation home, not an investor looking to scale.