Invest in Savannah Vacation Rental Properties
Are you considering investing in a vacation rental property in Savannah, Georgia? You’re not alone! Savannah has become an increasingly popular destination for vacationers, making it a potentially lucrative market for real estate investors.
But before you jump in, there are a few key things you need to know. With that in mind, we’ll cover the most important things to consider before investing in a Savannah vacation rental. From researching the market to hiring a property manager, we’ve got you covered. So let’s get started!
The Savannah vacation rental market
To make an informed decision about investing in a vacation rental property, you first need to understand the Savannah real estate market. So, what’s the current state of the Savannah vacation rental market? According to recent data, it’s thriving!
Savannah has always been a popular destination for tourists due to its rich history, beautiful architecture, and Southern charm. With the continuing rise in the popularity of short term vacation rentals (STVR), Savannah is quickly becoming an investors dream location.
The most popular types of vacation rentals in Savannah are single-family homes, apartments, and townhouses. These properties can range in size from cozy one-bedroom units to large homes that can accommodate 10 or more guests.
One thing to keep in mind is that vacation rental regulations can vary by location. You have to do your due diligence and be sure to do your research before making a purchase. This is where an experienced Savannah real estate team comes in.
In terms of rental rates, Savannah has a relatively high average daily rate compared to other vacation rental markets. The average nightly rate for a vacation rental in Savannah is around $260 during peak times. Even so, occupancy rates in Savannah are very strong. Some properties are experiencing occupancy rates of 90% or higher in those same peak seasons.
These are certainly positive indicators for those looking to invest in STVR properties in the area. But one thing that should always be kept in mind is the average annual vacancy and nightly price rates.
While they do dip during less busy seasons, the annual average occupancy is 77%. And the average nightly rate is $188. These are still very strong numbers.
All of these factors, including rental rates, occupancy rates, and vacancy rates, can impact your investment decision. Understanding the current state of the market is crucial for making an informed decision about your investment. This is why it’s crucial to work with local Savannah real estate experts to find your next STVR property.
Determining your budget
Before you start shopping for a vacation rental property in Savannah, it’s important to determine your investment budget. There are several costs associated with buying and maintaining a vacation rental property that you’ll need to consider.
First, there’s the purchase price of the property itself. This can vary widely depending on the location, size, and condition of the property. In addition to the purchase price, there are also closing costs, property taxes, and insurance to factor in.
Once you own the property, you’ll also need to consider ongoing costs. Mortgage payments, property management fees, utilities, and maintenance expenses are just some of the expenditures you can expect to incur.
Additionally, you’ll need to invest in furnishings, décor, and other amenities to make your property stand out from the competition.
To create a budget for your investment, start by determining how much you can realistically afford to spend on a property. Consider your personal financial situation, including your income, expenses, and other investments. Then, factor in the costs associated with owning and operating a vacation rental property to determine your total investment budget.
It’s important to have a solid financial plan in place before investing in a vacation rental property. This can help you avoid unexpected expenses and ensure that your investment is profitable in the long run. Consider working with a financial advisor to create a plan that’s tailored to your specific needs and goals.
Remember, investing in a vacation rental property can be a smart financial decision. But it’s important to approach it with a clear understanding of the costs involved. By creating a budget and having a solid financial plan, you can make a smart and lucrative investment.
By working with a trusted and experienced broker, not only can they help you find the right property. Their knowledge and network of financial professionals can assist you every step of the way.
Vacation rental regulations in Savannah
Investing in a vacation rental property in Savannah requires understanding the local regulations and laws surrounding short-term rentals. While Savannah welcomes vacation rental properties, there are certain regulations and restrictions you’ll need to be aware of.
For example, the city of Savannah requires vacation rental properties to be registered and permitted with the city. There are also certain zoning restrictions that limit the use of vacation rental properties in some areas. Additionally, the city imposes a number of rules regarding noise, parking, and trash disposal.
It’s important to note that vacation rental regulations can vary by location. This is why it’s essential to research the specific regulations that apply to the areas you’re considering. Some neighborhoods or Homeowner Associations may have additional rules or restrictions that you need to be aware of.
Violating vacation rental regulations can result in fines, penalties, or the loss of your permit to operate a vacation rental property. Therefore, it’s crucial to understand the rules and regulations before making an investment in a vacation rental property.
These regulations can also impact your investment decision. For example, if a certain area has restrictions on vacation rentals, it may limit the potential rental income of your property. However, if the regulations are reasonable and fair, they can also protect the value of your investment. It ensures that the neighborhood remains desirable for renters and property owners alike.
To research vacation rental regulations in Savannah, check the city’s website. Additionally, consult with a local brokerage, such as the Heather Murphy Group, who are familiar with the area. It’s also a good idea to review any applicable HOA bylaws. By understanding the rules and regulations, you can make an informed investment decision that complies with local laws and regulations.
Choosing the right Savannah area location
Choosing the right location for your vacation rental property is crucial to its success. Location can impact the rental rates, occupancy rates, and overall appeal of your property to potential renters.
In Savannah, there are several popular neighborhoods and areas for vacation rentals. These include the Historic District, Tybee Island, and the Victorian District. Each area offers a unique set of attractions and amenities that can make it a desirable location for renters.
The Savannah’s Historic Downtown, for example, is known for its cobblestone streets, historic homes, and charming squares. It’s a popular location for tourists who want to experience Savannah’s rich history and culture. Tybee Island, on the other hand, offers a more laid-back beach atmosphere and attracts visitors looking for a coastal getaway.
The location you choose can also impact your rental rates and occupancy rates. Properties located in desirable areas with easy access to popular tourist destinations command higher rental and occupancy rates. On the other hand, properties in less desirable areas may struggle to attract guests. As such, they’ll require lower rental rates to remain competitive.
To research neighborhoods and locations in Savannah, consult with a local real estate agent. They can provide insights on which areas are most popular with tourists. They’ll also offer advice on the best location for your investment.
Consider hiring a property manager
Hiring a property manager for your vacation rental can help ensure its success and profitability. A property manager can take care of the day-to-day responsibilities of managing your property. This greatly helps in freeing up your time and minimizing stress. Aside from that, this is especially helpful if you don’t live in Savannah full-time.
A STVR is just like any other rental. Someone always needs to be available. Whether it’s to ensure the house is clean and everything is in working order, or deal with any unforeseen circumstances.
The benefits of hiring a property manager are numerous and varied. They can handle bookings, guest communications, cleaning and maintenance, and ensure compliance with local laws and regulations. A property manager can also take care of any emergencies that may arise.
When looking for a property manager in Savannah, choose a reliable and trustworthy professional who has experience managing vacation rentals. Start by asking the agent or broker you’re working with. An experienced and well-respected Realtor will have the connections to point you in the right direction.
When interviewing potential property managers, be sure to ask about their experience, qualifications, and references from other clients. You should also discuss their fees and the services they provide, including how they handle bookings, maintenance, and emergencies.
It’s important to have a clear understanding of the property manager’s responsibilities and what they will handle on your behalf. Having a good working relationship with your property manager is essential to the success of your vacation rental investment.
Are you ready?
There’s no doubt that investing in a vacation rental property in Savannah can be a lucrative opportunity. But it’s important to do your research and make informed decisions to ensure its success.
By choosing the right people to help you along the way, you’ll be set up for success!
If you’re thinking of investing in vacation rentals, including short-term vacation rental properties, contact us. We’d love to be able to provide you with our expert guidance and support.
Our experienced team can help you navigate the complex Savannah housing market and find the perfect investment property to meet your needs. Don’t hesitate to reach out to us today to get started!
