Top 10 US Destinations for Beach Rental Income

Buying a home near the beach for its potential for rental income is often a bit of a risk/reward of an investment. After all, there are many factors to consider and there are no guarantees that beach house renters will knock on your door. Although the risks can be significant, the rewards can be greater, and buyers who do their homework can reap significant benefits in terms of total average annual rental income.

according to A recent report from RedfinBuyer demand for second homes increased by 87% at the start of 2022. While other areas of the real estate market may begin to return to normal, sales of second homes are expected to remain flat. Latest Vacasa Buyer’s leave report It states that 42% of buyers are looking to buy a vacation home in a beach destination.

Vacas (NASDAQ: VCSA), a leading rental management platform, cares for more than 35,000 vacation homes across North America, Belize and Costa Rica. They leverage that industry expertise to provide specialized real estate services and tools to potential second home buyers. After purchase, Vacasa supports a comprehensive vacation rental experience with local teams on the ground expertly cleaning and maintaining homes, along with a robust suite of technology to ensure homeowners get the most out of their investment.

Vacasa recently released its report on Best places to buy a beach house 2022. Vacasa’s annual report ranks the top US destinations for buying a vacation rental property based on average Max rateor annualized rate of return, as sales of second homes remained strong in the first quarter.

The following data is based on: the market; cap rate; average home sale price; Average gross annual rental income.

Gulf Shores, AL; 10.20%; 402,905 US dollars; $56,198

Corolla, NC; 9.50% $608,953; $77,971

Navarra Beach, Florida; 6.60%; $382,392; 43,202 dollars

New Buffalo, Michigan; 6.60%; $569,873; $58544

Daytona Beach, Florida; 6.50% $247,960; $31913

Galveston, Texas; 6.40%; $340,559 USD 43,981

Hatteras Island, North Carolina; 6.40%; $482,447; 45,968 dollars

Rockaway Beach, Oregon; 6.10%; $384,152; $48,030

Port Saint Joe, Florida; 6.10%; 360,721 dollars 39,688 dollars

Lahaina, hello; 5.80%; $725,000 $58,496

“According to us Buyer report on vacation rental for 2021Danid Kirkham, senior director of real estate at Vacasa, said 42% of buyers looking to buy a vacation home chose a beach destination as the type of market they would be most interested in investing in, and for good reason. “While beach destinations will always attract a steady flow of guests, buyers can also earn more on homes with amenities that guests often look for such as a beachfront or beachside neighborhood, a private pool or hot tub and are pet-friendly. Guests can enjoy Working and living from largely anywhere due to remote and mixed work environments. Homeowners also benefit from increased income from these longer stays, which often occur during the shoulder seasons when there is more availability.”

To determine its ranking of the top vacation rental markets, Vacasa analyzed home sales and vacation rental performance data from the past year for vacation destinations across the country where Vacasa and its affiliates manage vacation rentals. To determine the average gross rental income (homeowner’s income from bookings, excluding any fees) for the market, they used actual performance data for the market as a whole, where available, except that Vacasa data was only used for markets where Vacasa manages more than 50 units and performs Actual Vacasa rental outperforms the market average by at least 25%. To calculate the average cap rate, they considered the averages of the following in each market: property taxes, utilities, homeowners association fees, insurance and property management fees.

Local regulations vary by jurisdiction and transferring title to a new owner may affect their ability to use it as a vacation rental. In general, all vacation rental regulations are subject to change, which may affect your ability to use a property as a vacation rental in the future, and buyers should always check current local regulations before making an investment decision.

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