Coronavirus STR Data

[Avery Carl]

I know there have been many threads started on Coronavirus and it's impact on STR's over the past few days, but I wanted to share this data that Airdna published today detailing the affects of it on different types of STR markets. It appears metro markets are feeling the effects far more significantly than vacation rental markets.

The below data supports the two-fold STR investment strategy that I adhere to:

1. I only invest in STR's in TRUE vacation rental markets rather than metro markets. (I am in the Smoky Mountains in TN and the Emerald Coast in FL). The regulations in these markets are very very favorable for STR investors, since it's been the norm for tourists to rent privately owned single family homes and condos on an overnight basis for decades. (Well before the internet, much less Airbnb or VRBO). Because of this, these cities and counties figured out how to monetize STR's long ago, and the local economies depend on the income far too heavily to ever impose any truly restrictive regulations against STRs.

2. I only invest in vacation rental markets where the vast majority of the tourists are driving into, rather than flying into. The accessibility and affordability of drivable vacation rental markets is very difficult for more expensive fly-to markets to compete with in any sort of economic downturn. 

What are your experiences thus far? I have had a few clients want to pull the plug on contracts out of fear, but I have had far more reach out and tell me that they have been sitting on cash and are ready to jump into scaling into more STR properties if whatever is going on in the world results in a softening in purchase prices.

Moral of the story (and the data), keep your eyes on the numbers and your head clear of emotions when it comes to investing in any economic circumstance, whether they are favorable or slightly scary!

https://www.airdna.co/blog/coronavirus-impact-on-global-short-term-rental-markets?utm_source=drip&utm_medium=email&utm_campaign=Here%27s+how+the+Coronavirus+is+Affecting+Short-Term+Rentals+Globally&utm_content=0