Harrison, Idaho

Harrison, Idaho, a picturesque small town situated alongside the scenic Coeur d'Alene Lake, has seen an increase in short-term rentals. The charming surroundings and outdoor recreational opportunities make it an attractive destination for visitors. Given its appeal, Harrison provides a unique landscape for short-term rental investors.

The market is characterized by a blend of vacation homes, cabins, and unique lodging options catering to tourists and outdoor enthusiasts. The average daily rate (ADR) for short-term rentals in Harrison currently stands at $406.14, pointing to a potentially lucrative opportunity for investors.

However, potential investors need a comprehensive understanding of various dynamics, including performance metrics, growth projections, and local regulations.

Before delving deeper, it's crucial to present pertinent key performance indicators (KPIs) that offer a snapshot of the short-term rental market's health:

• Average Daily Rate (ADR): $406.14
• Occupancy Rate: Average occupancy rates in Harrison hover around 60% to 75% depending on the season.
• Revenue Per Available Room (RevPAR): This metric is essential for gauging profitability. Based on current ADR and occupancy rates, RevPAR is estimated between $243.69 (if we consider a 60% occupancy) and $304.61 (at 75% occupancy).

These metrics provide a foundational understanding of how Harrison's short-term rental market operates.

Over the past decade, Harrison's tourism sector has experienced modest but steady growth, driven by its natural beauty and accessibility to outdoor activities. The number of short-term rentals has fluctuated, influenced by various factors such as economic conditions, interest in outdoor recreation, and the rise of platforms like Airbnb.

While specific historical data for short-term rentals is limited, the increase in general tourism visits to Harrison supports the idea that the market for short-term rentals has expanded significantly. This growth is evidenced by a larger number of short-term rental listings over recent years, suggesting heightened investor interest and potential profitability in the area.

Moving forward, growth is expected to continue, given the increasing popularity of outdoor experiences driven by recent travel preferences.

Given the ADR of $406.14 and estimated occupancy rates of 60% to 75%, short-term rental investment in Harrison presents promising financial signals:

1. Potential Annual Revenue: For a property rented at this ADR:

   • At 60% occupancy:
     [
     \text{Annual Revenue} = 406.14 \times 365 \times 0.60 \approx $89,000
     ]
   • At 75% occupancy:
     [
     \text{Annual Revenue} = 406.14 \times 365 \times 0.75 \approx $109,000
     ]

2. Expense Considerations: Investors also need to account for operating expenses, including property management fees, utilities, maintenance, and local taxes, which can range between 20% to 40% of the revenue.

3. Cap Rate: If investors assess properties based on capitalization rates, properties that generate consistent annual revenues in the range noted above could yield respectable returns, especially in an absorption market where demand exceeds supply.

Hence, considering purchase and operating costs against anticipated revenue can provide investors with a solid overview of potential ROI.

Harrison experiences noticeable seasonal fluctuations in rental demand, which directly impacts occupancy rates:

• Summer (June to August): Peak season, driven by outdoor recreational activities. Many visitors flock to the area to enjoy water sports, hiking, and fishing, often resulting in maximum occupancy.
• Fall (September to November): A transitional season where rental demand declines as the weather cools. However, fall foliage can still attract visitors for hunting or photography, stabilizing occupancy rates at moderate levels.
• Winter (December to February): While the cold may deter some visitors, winter sports enthusiasts can attract a niche market. Short-term rentals might experience lesser demand compared to summer months, with occupancy rates potentially dropping to 50% or lower.
• Spring (March to May): As weather conditions improve, guests drawn to spring activities increase demand. Events or festivals may also enhance occupancy.

Understanding these seasonal trends allows investors to strategize pricing and rental availability accordingly.

Different property types attract varied demographics, influencing performance metrics within Harrison's short-term rental landscape:

1. Single-Family Homes: Often the largest rental category. These properties cater to families or larger groups, allowing higher occupancy rates during peak season.

2. Condos or Townhouses: These might attract couples or smaller groups seeking modern amenities and proximity to the town center or water. Average ADRs may be lower for this category.

3. Cabins: Typically preferred by outdoor enthusiasts or those seeking seclusion. These properties may command higher rates during peak outdoor activity seasons.

4. Unique Listings (e.g., A-Frames, Tiny Homes): Increased in popularity, particularly among millennial travelers seeking unique experiences. These could yield strong performance in occupancy rates, depending on marketing strategies employed.

Thus, property type significantly influences investor decisions, income potential, and guest perceptions, as each appeals to various visitor segments.

Visitor experience drives rental success in Harrison. Recent data gathered from guest feedback reflects the following preferences and amenities:

• Key Preferences:

  • Proximity to outdoor activities (lakes, hiking, etc.)
  • Scenic views and outdoor space options (decks, patios)
  • Family-friendly accommodations (multi-bedroom properties)

• Popular Amenities:

  • High-speed internet (a must for remote workers)
  • Fully equipped kitchens (self-catering appeal)
  • Outdoor activities (kayaks, fishing gear availability)
  • Pet-friendly options (many families travel with pets)
  • Hot tubs or fireplaces (for winter visitors)

Catering to these preferences might enhance occupancy rates and differentiate listings in a competitive market.

The short-term rental market in Harrison operates under strict local regulations. Investors should be aware of the following:

• Local Ordinances: Harrison may have local rules regarding licensing, permitted short-term rental types, and zoning requirements. It’s crucial for investors to verify if properties comply with these rules.

• Permit Requirements: Owners may need to obtain specific permits or pay transient rental taxes, which can affect revenue.

• Limitations on Rentals: Some jurisdictions may impose restrictions on rental durations, number of guests, and occupancy limits, affecting operational flexibility.

Understanding the regulatory landscape is essential for avoiding fines and maintaining long-term viability for short-term investments.

Investments in Harrison can vary significantly based on the neighborhood selected. Key neighborhoods to consider include:

• Downtown Harrison: Known for its waterfront access and restaurants, properties here may experience high demand, particularly in summer.

• Coeur d'Alene Lake Area: Scenic views and proximity to recreational activities make this a preferable neighborhood for vacation rentals.

• Scenic Retreats: Properties further from town might attract those seeking seclusion. However, investment potential may be lower given their distance from amenities.

Investors should evaluate neighborhoods based on traveler demographics and access to attractions.

As of October 2023, the short-term rental market in Harrison shows sufficient growth potential, driven by increasing tourist interest in the area’s natural beauty. Trends to watch include:

• Sustainability: Eco-friendly rentals may attract environmentally conscious travelers.
• Technology Integration: Smart home features can create convenience and enhance guest experiences.
• Increased Competition: As more investors recognize Harrison's potential, competition may increase, necessitating differentiation in terms of standards and amenities.

Investors must remain proactive regarding these trends, adapting to evolving guest preferences and market dynamics.

1. What is the average rental income for short-term properties in Harrison?

• Based on current ADR and occupancy rates, annual revenue can vary between $89,000 and $109,000.

2. What are the best property types for short-term rentals in Harrison?

• Single-family homes and cabins often perform best due to family size needs and outdoor recreational appeal.

3. How can I enhance my property’s occupancy rates?

• Focus on appealing amenities, optimize online listings, and adjust pricing according to seasonal demands.

4. Are there specific regulations for short-term rentals in Harrison?

• Yes, local ordinances govern licensing, occupancy limits, and rental duration. Always verify compliance before investing.

5. What are the seasonal patterns for short-term rentals?

• Expect peak demand in summer, with fluctuating occupancy during fall and winter months.

Investors eyeing Harrison will find a unique opportunity, albeit with the necessity of thorough research and strategic planning to optimize their investments. Understanding these elements provides a solid foundation for maximizing returns in Harrison’s short-term rental market.