STR in Idaho?? How to find the best deals in the best areas?

Question

I am looking to get into some vacation rentals in Idaho. What resources have helped you guys out as far as checking location/numbers/potential rents etc? Thanks in advance!

Michael Baum · Answer

Hey @Kade Eiguren, what I did is take a look at all similar homes to ours. Not exact as most people will adjust their needs based on location, price etc. Just go through all AirBNB and VRBO/HomeAway listings that are similar and get a gander at their calendars. This will give you a baseline. Now that is just a baseline. It will be up to you to create the experience that people will be looking for.Like accepting dogs. That alone can boost your occupancy. I charge 50 bucks per dog up to 2. Really making the kitchen nice, great beds and comfortable spaces. Stocking up on games and maybe game tables for those times when they are at the house. Video games, streaming TV's etc all add to the experience.Remember that you are just starting new. You have no reviews so it will take some time to build that up. Our first year was light, but I expect it and planned for that. Once we had a few 5 star reviews, things took off for year 2. We were booked full for the summer with some spring and fall visitors. Year three is shaping up well. We are booked about 1/3 of the summer right now and inquiries are coming in about 5 a week. I expect to be full by end of March. Our place is on the lake pretty far from town and not near any winter sports so summer and bumper months are what we get. We did get our first Thanksgiving guests and they had a great time. I have a very well stocked kitchen and I added some new saute pans just for their visit. Got a great 5 star review!Overall, occupancy is mostly up to you. The better the place you create the more people will want to stay there. More 5 star reviews means more folks will consider your place.

Kade Eiguren · Answer

@Michael @Michael Baum Thanks Michael! That's basically what I've been trying to do in my area. The one piece i''m hung up on is how do you estimate occupancy rate? What did you do to estimate those numbers?

Michael Baum · Answer

Hey @Kade Eiguren! Our lake house is in North Idaho on Lake Coeur d'Alene. What I did is what everyone should do for any area they are considering. Just look at the various vacation rentals in the area you are considering. For example, when we found our house, I ran searches on AirBNB and VRBO/HomeAway checking on places that had similar size, features etc. Now seeing as we wanted lakefront, our choices were limited due to our budget. A lakefront place on Lake Coeur d'Alene can be well over a million. Our place is pseudo lakefront. There is a small road in front of our house and the bike trail before our beach. Maybe 50 feet from the house. Once I did a comparison of all the properties that you could rent, I came up with our nightly rate. Then I built the place out like I would want it for our family. Well equipped kitchen is number one. Great mattresses etc. Having said all that, let us know your top areas and budget. Idaho has a lot of space with lots to do. A vacation rental can do well just about anywhere. Of course like @Don Spafford says, when you are doing it in a big town like Boise, regulation changes can turn your vacation rental into a long term rental in the blink of an eye.

John McNaughton · Answer

@Kade Eiguren I think you would benefit from talking to multiple property managers and Realtors in the locations you are considering. Get a rough idea from them, and then drill down more specifically. As was already mentioned, not every STR is for a weekend getaway, or family reunion. If it is a popular vacation spot, then yes it will probably be a vacation rental, but short term could have many different niches.

Don Spafford · Answer

@Kade Eiguren Is there a particular part of Idaho you are considering? You can definitely check the forums here for STR in Idaho and I'm sure you'll find some people doing it, so you can ask them what to expect. There is a house right across the street from me that is always filled and there is a good reason for it because of how they set it up for large groups which makes it a no brainer for big families or groups coming through the area or here for family gatherings, etc. I plan to follow the same model when I get one set up for STR this year, but for me I want to also make sure that it can still cash flow as a LTR just in case laws change, I want a backup that will still work.

Paul Sandhu · Answer

@Kade Eiguren Look at your competition and their performance. My competition is a cheap motel next to a refinery. They charge $400/week for a room with 2 beds. I charge $600/week for a furnished 3 bedroom house. In any given week, there are 50-200 contractors here for a 2 week to 3 month job. There are 5-10 jobs going on at once. Those 50-200 people need a place to drink beer, sleep and bath. I provide that, plus a place to cook and do laundry in an environment that looks like Hugh Hefner decorated it.

Kade Eiguren · Answer

@Paul Sandhu so I have been in an area that I think would do well, looked at houses. What I meant is whats the most accurate way of figuring out what property X will make gross (roughly). How do I best hypothesize occupancy rate?

Paul Sandhu · Answer

Get your boots on the ground, mayne.