Way back then, going somewhere for a vacation meant staying at a hotel or other type of professional lodging provider. However, with the rise of short-term rental platforms like Airbnb, VRBO, HomeAway, and other similar apps, tourists now have a wider choice of accommodations at their fingertips. These apps have opened up a new avenue for investors, as well, with many vacation homeowners opting to rent out their properties during peak tourist seasons for added income.
Utah has become one of the more lucrative markets for short-term rentals, with the state seeing a whopping 38.4% increase in short-term rental listings between 2018 and 2021. A good chunk of that increase can be attributed to Park City, where nearly 43% of homes are now short-term rentals.
Let’s look more closely at the impact of the thriving short-term rental industry in Park City.
ECONOMIC GAINS
Short-term rentals help bring in more income for cities or counties through increased tax revenue. Local businesses also benefit as visitors come in to spend their money on shops, restaurants, and other commercial establishments in the area. The enormous income potential of short-term rentals is why a lot of investors are rushing in and buying real estate for this purpose.
INCREASED TOURISM
Short-term rentals are usually more affordable than traditional accommodations, which can be an enticing proposition for a wide range of tourists. This can be especially helpful to the community during off-peak seasons when local businesses could potentially struggle.
MORE MARKET FLEXIBILITY
Short-term rentals provide homeowners with more flexibility than if they were to rent out their properties for longer time periods. During vacation time, owners can simply schedule the property for their use and have renters use it on available days. It’s also easier to block days or weeks off the calendar on short notice. For buy-and-hold investors, a short rental is a great way to generate income while waiting for the property to appreciate.
SHORTAGE OF LONG-TERM RENTALS
In many suburban areas, short-term rentals are replacing properties that may otherwise be used for long-term housing, thus decreasing the market for long-term rentals.
Then again, many investors prefer renting their properties out in the short term because of the higher gross income potential. That still spells good news on the economic side, In a tourist magnet like Park City, a short-term rental could generate a return on investment that’s two to three times more than a long-term rental.
CONSTANTLY CHANGING NEIGHBORHOOD
Residents living near vacation rental properties experience a revolving door of neighbors, with new people staying and leaving every few days.
Although seeing a fresh set of faces living next door in such a short time can sometimes be unsettling, the good news is that Park City residents get the chance to meet people from all walks of life. Each newly forged relationship attests to Park City’s commitment to diversity, inclusion, equity, and belonging.
There are numerous exciting opportunities for investment in Park City, especially in short-term rentals. All you need to do is to make yourself ready for the task ahead and find your own slice of real estate in Park City, Utah. In that aspect, let the top-notch real estate specialists of Team Schlopy assist you. Contact the team at (435) 640-5660 or send an email here for any info you may need about the Park City real estate market.