If you're passionate about turning properties into profitable assets, you're in the right place. Whether you are new to the game or looking to optimize your current rental. These tips will help you navigate the ins and outs of this popular market. Now let's explore how you can maximize your investment potential and discover the secrets to successful vacation rental management in Branson and beyond.
When it comes to investing in short-term rental (STR) properties, the most critical decision you’ll make is choosing the right asset. Your choice of property is a permanent one, making it the foundation of your rental business. There are Six Key Factors you should evaluate when selecting a short-term rental asset.
1. Location
Location is paramount. It’s the first factor on the list because the property’s location will determine your potential occupancy rates and rental income. In Branson, the closer your vacation rental property is to the center of town, the better. Branson attracts over 9 million visitors each year, but there is a short off-season in the winter months. If your rental is more centrally located, it will be positioned well to continue having stable occupancy rates, especially during the slower season. The Branson Investor COA Guide makes it easy to find these properties. Simply look for the properties marked "Centrally Located".
2. Asset Type
The type of asset you choose is the next crucial decision. Whether it's a single-family home, condo, duplex, or another type of property, each comes with its own set of benefits and challenges:
- Single Family Homes
In the Branson real estate investment market, the ROI for single-family homes is more conducive to Long Term Rentals. Learn more about Branson's Long-Term Rental market.
- Duplexes
Duplexes can be good as both short-term and long-term rental investments in Branson. However these assets are a rare find in the Branson market.
- Lodges
There are several lodge communities in Branson with 6-12 bedrooms, meant for large groups and family reunions. While there is a market for these rentals, they do not perform as well as other higher-ROI asset classes due to a high competition, less demand in the shoulder months, and higher cancellation rates with larger groups.
- Condo-Tels (Condo-Hotel Hybrid)
These nightly rental units are the most passive and turnkey option in the Branson Market. The management fees are 50%, which is significantly higher than the typical range of more ideal asset classes. This fee covers comprehensive services, including marketing, booking, maintenance, cleaning, linens, etc. In addition, there are $300/monthly dues. If you are hoping to utilize your investment property personally, it is also good to keep in mind that there is a limit of 21 days per year for owner use.
- Condominiums
We've saved the best for last and really this is the ideal property with the highest ROI in the Branson Market. There are several Condo communities in Branson with reasonable monthly dues, great amenities for your guests to enjoy, and reasonable COA dues. -----To explore and compare all of the COAs in Branson go here-----.
Choosing the right type of asset is a permanent decision, so it’s essential to select one that aligns with your investment goals.
3. Bedrooms and Bathrooms
The number of bedrooms and bathrooms is a key consideration. Properties with more bedrooms and bathrooms can accommodate larger groups, potentially increasing your rental income. However, they also require more maintenance and higher furnishing costs.
4. Steps
Consider the property’s accessibility. Is it upstairs, downstairs, or a walk-in unit? Properties with fewer steps are generally more accessible and appealing to a broader range of guests, including families with young children and older adults. Walk-in units tend to have higher demand due to their convenience.
5. Extra Features
Extra features can significantly impact your property's attractiveness. Does your property offer a view of a lake, golf course, or neighboring building? Properties with desirable views can command higher rental rates and attract more bookings. Highlight these unique features in your marketing to differentiate your property from the competition.
6. COA (Condominium Owners Association)
Finally, consider the COA. Each COA has its own set of rules and regulations that can affect your STR operations. Some COAs have restrictions on short-term rentals, so it’s crucial to review these rules before purchasing a property. A supportive COA can enhance your rental business by maintaining the property’s common areas and amenities.
Importance of a Seasoned Real Estate Agent
Given the permanent nature of your asset choice, it's imperative to work with a seasoned real estate agent experienced in the Branson market. An experienced agent can guide you in selecting properties that are ideal for short-term rentals in Branson, ensuring that you make informed decisions. Their local market knowledge and investment expertise are invaluable in identifying the best assets that align with your investment goals.
Property First to Set Yourself Up for Success
Ensure that the asset you choose meets all the criteria for a successful short-term rental. Once you’ve secured the right property, you can then focus on the rest of the details, such as furniture and decorations. While these are important for creating a welcoming and appealing rental, they are secondary to the property's fundamental characteristics.
By prioritizing the property itself and considering all the fixed factors, that contribute to its success, you’ll be well on your way to building a profitable short-term rental business.
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