Short-term rentals require long-term patience
You can’t just plow ahead. Hosts offer tips to second-home owners who want to put their winter properties on sites like Airbnb.
The short-term rental platform Airbnb has come a long way from its 2007 roots, now counting more than 4 million hosts who use it. A glut of listings — and a range of hosting types to match — has driven some communities to institute new policies governing the practice. And in New England, where second-home owners are known to rent for months at a time through ski season, whether or not to enter the market comes with a snowplow full of logistical concerns, too.
Overall listings for Airbnb alone increased more than 13 percent from August 2022 to August 2023, according to AirDNA, a provider of data and analytics for the industry. Hosts said that the plenitude has driven down nightly rates and that it takes more effort than ever to get attention.
“If they’re thinking that they’re going to come into the market and just kill it, and 100 percent of their bills are going to be paid for, it’s probably not the time right now,” said Kelly Coleman, who operates Kelton Collective, a property management company based in Jamaica, Vt., that coordinates short-term rentals.
“It’s no longer the type of market where you can throw your short-term rental onto a booking platform and let it do its thing,” she said. “You have to be very proactive in your approach. … What we’re seeing is the need for actual advertising, actual marketing, making sure that you’re present and getting your property out there, rather than expecting it to sell itself.”
That includes partnering with listing sites such as Airbnb that vet renters and provide insurance, as homeowner’s insurance does not cover short-term renters, Coleman said.
For off-site investors who bought during the pandemic, the rewards will be slower to materialize, she said.
“We are going to start seeing a number of folks who maybe bought in 2020 putting homes back on the market because they weren’t expecting there to be so much work involved,” Coleman said.
But those looking to fill in weekends between their visits have the right idea, she said.
“They’re just looking to subsidize their bills [and] make sure the house isn’t sitting vacant for months at a time,” she said. “You know, those people are in a great position right now.”
Coleman said hosts who have gilded homes in luxury finishes may do better to hold off for now.
“We’re seeing those homes that were $1,000, $1,500 a night, and they have every single luxury item that you could
have imagined — we’re seeing them still on the market now for $275-$300 a night,” she said.
Jessica Cooper, a Lincoln resident, owns a home in Arlington, Vt., where she plans to retire eventually.
“We do get about 60 percent occupancy in the winter, which does cover all the costs and the expenses of running the house,” she said.
Cooper said that she applies the profit to a series of improvements, such as solar power and window replacement.
“I think that people think it’s really lucrative, and it’s not,” said Cheryl Loiselle of West Newbury, who bought a home in North Conway, N.H. “We spend a lot of money just making sure the place is … perfect.”
Loiselle said that in just over two years, she and her husband have replaced nearly all of the furniture and encountered unexpected wear and tear.
“We need to be in pristine condition all of the time,” she said, “because if you get a bad review, you’re basically dead.”
Snowy and cold northern conditions require special attention, too. Between occupants, Loiselle and her husband coordinate maintenance: pest control to make sure woodland creatures remain in their natural habitats, as well as a whole-house deep clean, including carpets, every couple of months.
Loiselle said she enjoys the work and makes a point to connect with every renter, but she warns prospective hosts not to underestimate the costs and effort, especially getting started.
And New Hampshire weather is not Massachusetts weather.
“I think that it’s a little bit more expensive on the startup than I would have anticipated,” she said. “You need a plow person, you need a lawn person, you need a handyman. … You need all of these people being in place in order to start right.”
Coleman advised hiring local caretakers, especially for the winter, when pipes may freeze or burst.
“God forbid it does burst and your renters walk into a flooded home,” she said.
There are other reasons to forge local connections, too, as communities across the region grapple with the question of how these rentals are affecting the housing supply, peaceful enjoyment, and other areas of daily life around them.
To address concerns, some have instituted regulations or added taxes to benefit local revenue. A Harvard study suggested a correlation between the prevalence of Airbnb and rising rents.
In Conway, N.H., neighbors and local leadership have grappled with the topic of how to manage the area’s rentals, which include short-term, seasonal, and long-term formats.
On Sept. 1, the town rolled out a new inspection and registration protocol for rental units. As of Jan. 1, 2024, rental units must be licensed, pass a 10-point life-safety inspection, and pay a $375 fee for a three-year term.
“Whether you’re renting long-term, seasonally, or short-term, they are all accepted uses here in the town of Conway,” said Paul DegliAngeli, deputy town manager. For new property owners coming from elsewhere, DegliAngeli said, the previous lack of inspections may have come as a surprise.
“It’s likely that you have an expectation that the property you’re buying was built to some code,” he said, “and that’s not the case here.”
DegliAngeli said that in 2020, a town survey estimated there were approximately 730 rentals in its limits using internet-based listing sites, with fluctuations during the pandemic as city-dwellers took more permanent residence in the resort community.
Year-round housing in Conway, as in many communities, remains a squeeze. DegliAngeli cited a local study estimating that service workers drive an average of 50 minutes to work in the area due to housing shortages. But DegliAngeli said multiple factors are likely to contribute to the apparent population growth: Local restaurant owners struggling to find staff, he said, may point to a pandemic-driven boost in remote workers and a feeling that Airbnb has limited the housing supply.
The debate stretches across the region. Bangor, Belfast, Casco, and Portland, Maine, have or are developing policies, among many others. And homeowners who plan to rent should be prepared to join those conversations.
“You definitely have to be paying attention to what is allowed, what is not allowed,” Coleman said. “You have to just be cognizant of your neighbors and be nice. It goes a long way.
“And be respectful.”
‘People think it’s really lucrative, and it’s not.’ CHERYL LOISELLE Owns second-home rental in North Conway, N.H.