In 2016, the vacation rental market created over a billion dollars for U.S. vacation rental property owners. That’s a call to action for many investors, and in Covington, return on investment for vacation rental property owners is over 25 percent; in Cincinnati, ROI is just over 20 percent.
For this study from i Property Management, to be considered a "vacation city," a city needed to have at least 10 full-time rentals on Airbnb. Full-time rentals are defined as properties available for rent for at least 75 percent of the year, and no more than 10 blocked calendar dates in each month. These were further narrowed down to properties with at least 20 Airbnb bookings in the last 12 months.
The study examined median sales prices and the local cost of homeownership to estimate what expenses are incurred by vacation property owners — utility rates, insurance costs, property taxes, home maintenance and local interest rates on 30-year mortgages. Historical local occupancy rates and the median vacation rates were used to estimate the gross vacation rental revenue for each property.
Click here to learn more about this study.
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