Exploring Gulf Shores, AL for Short-Term Rental Investment – Looking for Insights

[Liam Alvarez]

Hello everyone,

I’m considering investing in a short-term rental property in Gulf Shores, Alabama and wanted to reach out to the community here for some insights and feedback on the market. I’ve done some initial research, but I’d love to hear from anyone with firsthand experience or knowledge of the Gulf Shores rental market.

Specifically, I’m curious about:

• Occupancy Trends: How does demand fluctuate throughout the year? Is there a peak season, or does Gulf Shores have a consistent flow of visitors year-round?

• Rental Rates: What can I realistically expect in terms of nightly or monthly rates for short-term rentals?

• Local Regulations: Are there any important rules, taxes, or permit requirements for STRs in Gulf Shores that I should be aware of?

• Best Neighborhoods: Which areas tend to attract the most renters? Any recommendations on specific neighborhoods that have strong rental potential?

• Challenges & Opportunities: What are some common challenges that investors face in this market, and are there any unique opportunities right now?

If you’ve invested in or managed properties in Gulf Shores, I’d love to hear your thoughts on the potential of this market. Any resources, tips, or personal experiences would be incredibly helpful as I explore this investment opportunity!

Thanks in advance for any advice or guidance you can share!

[Candace Pfab]

Quote from @Liam Alvarez:

Quote from @Candace Pfab:

Quote from @Liam Alvarez:

Hello everyone,

I’m considering investing in a short-term rental property in Gulf Shores, Alabama and wanted to reach out to the community here for some insights and feedback on the market. I’ve done some initial research, but I’d love to hear from anyone with firsthand experience or knowledge of the Gulf Shores rental market.

Specifically, I’m curious about:

• Occupancy Trends: How does demand fluctuate throughout the year? Is there a peak season, or does Gulf Shores have a consistent flow of visitors year-round?

• Rental Rates: What can I realistically expect in terms of nightly or monthly rates for short-term rentals?

• Local Regulations: Are there any important rules, taxes, or permit requirements for STRs in Gulf Shores that I should be aware of?

• Best Neighborhoods: Which areas tend to attract the most renters? Any recommendations on specific neighborhoods that have strong rental potential?

• Challenges & Opportunities: What are some common challenges that investors face in this market, and are there any unique opportunities right now?

If you’ve invested in or managed properties in Gulf Shores, I’d love to hear your thoughts on the potential of this market. Any resources, tips, or personal experiences would be incredibly helpful as I explore this investment opportunity!

Thanks in advance for any advice or guidance you can share!

We have been investing in this market since 2009 and have helped many BP members.  Happy to connect to see how we can help!

Thanks for reaching out! It’s fantastic to hear you have such extensive experience in the market—especially since you’ve been helping others navigate it since 2009. I’d love to connect and learn from your insights.

Could you share some of the trends you’ve seen over the years in terms of occupancy rates, peak seasons, and any shifts in demand? I’d also be interested in hearing about specific neighborhoods or property types that have been particularly successful for STRs. Any advice on local regulations or best practices would be greatly appreciated as well.

Looking forward to connecting and learning more from your experience!

We are a seasonal market, so prime season is Memorial Day to middle of August plus Labor Day weekend.  We do well with winter guests.  You can see 100% occupancy from beginning of January thru mid-March, but at lower rates.  Spring & Fall still book, but tend to be shorter stays than Summer & Winter.  Lots of festivals to attract guests most of the year.  Year round occupancy levels trend around 65%.  There has been downwards pressure on rates this year due to the economy.  Most recent report showed occupancy down about 8%, but Average Daily rate up about 1%.  Also hearing better than market results from those who are self managing as consumers continue to buck excessive fees by seeking to book direct.  Regulations are very stable here.  Anything outside of the beach zone which has been designated for vacation rentals is going to be challenging regulation wise & neighbor wise.  There is lots to discuss regarding property type.  Condos have a lower price entry point, but many are facing insurance assessments due to rising insurance costs, so that has to be reviewed carefully, but single family homes are seeing the same rate pressure unless very new construction.  Hope that helps!