STR's On Oregon Coast (My Top 10 Cities & PRO/CONS)

[Dan Gandee]

Owning a short-term rental property in a beach area on the Oregon Coast can be a lucrative investment opportunity, but it also comes with its own set of pros and cons. Let's start here!

Pros:

1. High Demand: Beach areas are popular vacation destinations and attract a lot of tourists, making short-term rentals in these areas in high demand. This high demand can lead to higher occupancy rates and higher rental income.
2. Seasonal Rental Opportunities: Beach areas often experience peak seasons for vacationers, which can allow for higher rental rates during these times.
3. Personal Use: If you enjoy vacationing at the beach, owning a short-term rental property in a beach area can provide a convenient vacation spot for you and your family while also generating rental income when you are not using the property.
4. Property Appreciation: Beach areas are often desirable locations for real estate, and owning a short-term rental property in these areas can provide a potential for property appreciation and a profitable exit strategy.

Cons:

1. High Competition: With high demand comes high competition. Other property owners may be vying for the same renters, which could lead to lower occupancy rates and less rental income.
2. Seasonal Fluctuations: The rental income for a short-term rental property in a beach area may fluctuate seasonally, with lower demand during off-peak seasons.
3. Maintenance Costs: Owning a short-term rental property requires regular upkeep and maintenance to keep it in top condition. This can be costly, particularly if the property is located in a corrosive, beachfront environment.
4. Regulations: Some beach areas may have regulations that limit or prohibit short-term rentals. Property owners must be aware of these regulations and comply with them to avoid legal issues.

In conclusion, owning a short-term rental property in a beach area on the Oregon Coast can be a lucrative investment opportunity, but it is important to weigh the pros and cons before making a decision. Property owners should consider the competition, seasonal fluctuations, maintenance costs, and regulations when making their decision. My real estate team has been working with STR owners for years, and we always advise anyone looking to invest in this asset class to run a SWOT analysis of the specific market they are potentially entering. If you have no personal use goals, then it must simply CASH FLOW every month to be a good investment.

Next, here are my TOP 10 STR Cities on Oregon Coast (ranked by best to worst in my opinion of cashflow, amenities, beauty, and weather):

1. Brookings, OR  

2. Cannon Beach, OR  

3. Seaside, OR 

4. Lincoln City, OR

5. Florence, OR (Yachats & Heceta) 

6. Newport, OR 

7. Bandon, OR

8. Gold Beach, OR 

9. Port Orford, OR 

10. Pacific City, OR 

It's not always the most beautiful place that cashflow the most, but instead the easiest for access for weekend getaways. Hence the reason we have several cities within driving distance of Salem, Corvallis, Eugene, and most importantly Portland. In terms of beauty, I feel Brookings, Gold Beach, Seaside, and Bandon take that crown. In terms of amenities and things to do - Florence takes the crown here with the dunes, restaurants, fishing, hiking, etc. For romantic locations with a little more privacy, Port Orford, Gold Beach, Cannon Beach can be great areas to visit. 

Most of the cities on this list have restrictions for STR's so DO YOUR OWN DUE DILIGENCE before BUYING!

Any questions - hit me up!