What should you look for when investing in short term rental real estate in Avon?
First, consider your price range. A short term rental property will generally require a down payment of 20% or more in ready cash. Unlike the traditional owner-occupied scenario, you won’t be able to apply for FHA loans if you’re not living in the property full time. (And if you ARE planning on living there…know that very few short term rentals in Avon are single room shared spaces. Most rentals on the market are an entire home or apartment). The median home price in Avon is $615,000, which means a down payment of $123,000—plus closing costs, perhaps a year’s worth of pre-paid insurance, and more! If you won’t be able to invest this much, you may need to get a smaller property. Just remember, the majority of short term rental real estate in Avon is 2 or 3 bedrooms. If you’re significantly under where you need to be, short term rentals not be the investment for you.
Second, check the legality. You can find short term rental real estate throughout Avon (and the rest of the Valley) but the laws are unique to each area. In Avon, there is an overlay zone district that makes most properties legal to rent out on Airbnb or VRBO. But with areas zoned PUD (Planned Unit Development), it’s case by case. These properties allow short term rentals:
- Brookside Park
- Canyon Run
- Chapel Square
- Chateau St. Claire (The Ascent)
- Falcon Pointe
- Lakeside Terrace
- Lot C (Sheraton Mountain Vista)
- Riverfront Subdivision (Westin)
- Stonebridge Cluster Homes
In excluded areas, property owners need to apply for a PUD amendment to include short-term rentals as an allowable use. That’s something you’ll want to settle BEFORE buying.
Third, consider what kind of properties are booked frequently on Airbnb or VRBO. The general rule is “if you want it, someone else will too” but that principle has its limits. Generally, features like hot tubs or fireplaces, stunning views, and common area features like exercise rooms attract more clientele.
Running the numbers on how much you’ll earn vs how much you have to spend isn’t always easy. Contact scott@awayagents.comand we can talk you through some of the math.