Short Term Rental Investments in North Georgia
Short term rental properties are an amazing avenue for building equity, generating substantial passive income, and even securing a vacation haven for your families. As a real estate agent who also owns a successful short term rental property, I am excited to share my story of finding an investment property and valuable tips for making your short-term rental investment a huge success.
In January 2021, after 6 months of looking with my now business partner Tara Barnes, my husband and I purchased a 960-square-foot riverside cabin nestled in the heart of Dahlonega. The home is steps away from the river with huge windows letting in natural light. It’s also under 2 miles from a very popular vineyard and around 10 minutes into downtown Dahlonega. Based on the location and these other factors, I knew we could make it into something really special. We spent the next few months pouring our hearts into the home, including fresh interior paint, staining the deck, new light fixtures, adding shiplap and a built in bench, painting the cabinets and adding our own decor. Fast forward to today, and we have proudly attained the coveted Airbnb Superhost status for 2+ years! For 2023, the numbers speak for themselves: 195 nights already booked and a 71 percent occupancy rate. (I share our rental revenue numbers as part of the one hour investment property consult call that I offer new and potential clients!)
From finding the right location to ensuring the property is able to be in a short term rental program (depends on the HOA/subdivision/county) there is a lot that goes into finding the right investment property.
As your agent, we will begin with a quick survey that you will fill out so I can better understand your needs. Once you have been pre-qualified by a mortage broker (I have some great recs if you need one), we will schedule a call where you can ask me any questions and we can chat about everything from finding the right property to getting it prepped as a short term rental, hosting platforms and making passive income. Next, I’ll set up your home search and the fun will begin!
The benefit of using me as your REALTOR® is my experience hosting in North Georgia, my background in PR and marketing to help set your cabin apart and create the best customer experience and my passion to help others create successful investment properties of their own.
Here are six basic things we will pay attention to during the search process:
Location: Is the property close to things to do like shopping, dining and attractions? Where is the closest grocery store? Are there hiking trails and waterfalls nearby or public lake access? Any hidden gems like trail you can walk to, a backyard rushing creek or mountain views? At our cabin, we tend to get a lot of guests coming in town for weddings wanting to be near wedding venues, families wanting to be near kid friendly attractions like gold mining in Dahlonega and tubing in Helen, and of course girlfriend getaways wanting to be near wine vineyards. Above all, our guests choose our cabin because they want a peaceful waterside escape where they can float and fish the river steps off the back porch.
Turnkey: A turnkey property, fully furnished down to the linens and dishes, and being equipped with smart door locks and security cameras ensures a seamless transition to renting and will save you a lot of time, money and hassle.
Success of nearby rentals. Check the availability calendar of other properties in the area, reviews, and descriptions to gain insights into guest experiences. How are their prices? Are they fairly booked out over the next couple of months? I look at their reviews (4.8 or higher is what I want) and I read their description to get a better idea of what guests will be able to enjoy in that location. If reviews say the Wi-Fi is non-existent and the road is very steep, unpaved and scary to drive at night, I will move on to another listing because chances are, these will be deal breakers for my clients.
Previous rental history numbers. When my clients see a property they are interested in, I always ask the seller’s agent to provide me with previous rental history numbers which can provide valuable projections for your future earnings and expenses. If you are taking over an existing short term rental and you know the current owners made about $40K a year on Airbnb, you can expect your future rental to gross more than $3,300 per month. Knowing these estimates will help you determine how much, if any, that you will need to spend out of pocket on insurance and utilities beyond your anticipated earnings.
Additional expenses. Will the AC or septic need replaced? Will the property require flood insurance (if on the river, for instance)? Is there a lot of grass that will need mowed? There are many expenses to consider for a property: Pest control, termite bond, lawn care, umbrella insurance policy, housekeeping, power, water, Internet, cable or satellite TV and any HOA fees. Calculating all costs—from utilities to housekeeping—provides a comprehensive financial outlook.
Good bones. When looking at potential properties, always prioritize “good bones.” Features like ample natural lighting, high ceilings, large windows, and stunning views create a strong foundation for the property's appeal. Don't worry about paint colors and décor; those can always be changed to match your vision.
Remember, navigating the short-term rental landscape varies from county to county. It's crucial to work with an experienced REALTOR who understands local regulations and zoning laws. Purchasing a property with existing vacation zoning or a successful rental history can save you a world of hassle.
Every county in Georgia is different. Some counties are making it incredibly difficult to get approved as a short term rental, which is why purchasing one that has already been zoned vacation or in a successful rental program is a huge bonus. Our cabin is in Lumpkin County and I absolutely love working with their Planning Department and Chamber of Commerce. Discover Dahlonega has an amazing and supportive team and I always suggest clients include Lumpkin County homes in their home search for this reason.
As your dedicated agent, I'm here to guide you every step of the way. I'll curate property searches to align with your goals and will go above and beyond to make sure you have all the tools you need to run a successful short term rental business.
I would love to help you find the perfect North Georgia property! Reach out to me today, and let's chat more!
