Clewiston, located in Hendry County, Florida, offers a unique and evolving market for short-term rentals. Known primarily for its proximity to Lake Okeechobee, the largest lake in Florida, and its agricultural backdrop, the city draws diverse visitors. The local economy is influenced by agriculture, tourism, and outdoor activities, providing considerable opportunities for investors looking to enter the short-term rental space. The city’s strategic position makes it accessible for tourists seeking recreational activities such as fishing, boating, and enjoying the scenic beauty of the lake.

To evaluate the viability of short-term rentals in Clewiston, several key performance indicators (KPIs) need to be considered:

• Average Daily Rate (ADR): Currently, the average daily rate for short-term rentals in Clewiston stands at $190.23. This figure is critical for determining revenue potential and setting competitive pricing.

• Occupancy Rate: The occupancy rate in Clewiston generally ranges from 65% to 75% during peak tourist seasons. A steady occupancy rate indicates healthy demand.

• Revenue Per Available Room (RevPAR): Based on the ADR and occupancy rates, the RevPAR can be calculated, providing insights into overall performance and potential profitability of rental properties.

• Length of Stay: The average length of stay for guests is typically around 3 nights, suggesting that while many visitors are on short vacations, there is potential for longer bookings, especially with local activities.

Understanding these KPIs allows investors to interpret the market dynamics and tailor their investments accordingly.

In the last decade, Clewiston has experienced gradual growth in its short-term rental sector. Between 2013 and 2023, the number of short-term rentals has increased by approximately 50% as demand for travel to recreational areas rises. Factors contributing to this growth include:

• Increased tourism efforts focused on promoting outdoor activities and local events.
• Improved infrastructure and amenities in the area, making the city more attractive to tourists.
• Economic growth and suburban sprawl leading to more people exploring regional tourism opportunities.

Looking forward, it is anticipated that growth will continue, albeit at a more moderate pace, as the market stabilizes.

The potential return on investment (ROI) for short-term rentals in Clewiston can be assessed based on average performance metrics. With an ADR of $190.23, property owners can project their monthly revenue based on expected occupancy rates. For example, assuming an occupancy rate of 70%, a property could generate:

• Monthly Revenue = ADR x Occupancy Rate x Number of Nights in a Month
  = $190.23 x 0.70 x 30
  = $3,983.83

This figure does not account for expenses such as maintenance, cleaning, utilities, and property management fees, typically ranging from 30% to 50% of gross revenue. Investors can expect an ROI of approximately 10% to 15%, factoring in appreciation and operational costs.

Seasonality plays an essential role in short-term rental demand in Clewiston. The peak tourist season runs from November to April, coinciding with favorable weather conditions, attracting winter travelers. The off-peak months, from May to October, see a dip in occupancy rates, although there are still opportunities, particularly around fishing tournaments and local events.

Promotions and price adjustments during off-peak seasons can help maintain interest and occupancy. For example, offering discounts for longer stays or special packages can attract guests in the slower months.

The performance of different property types in Clewiston varies significantly. Here’s a general breakdown:

• Single-Family Homes: This is the most common rental option, offering various sizes and amenities. They cater to families and larger groups and tend to perform well during high season.

• Condos and Townhouses: These properties attract couples or small families, especially those seeking proximity to the lake and recreational areas.

• Cottages or Cabins: More unique listings draw guests looking for a distinct experience, often appealing to those interested in outdoor activities.

Investors should consider the property type that aligns with their target guest demographic for optimal performance.

Research on guest preferences in Clewiston informs property owners about essential amenities that can attract bookings. Key amenities that appeal to guests include:

• Waterfront Access: Properties near the water tend to have higher booking rates due to their proximity to recreational activities.

• Pet-Friendly Options: As more travelers prefer to bring their pets along, offering pet-friendly accommodations can increase marketability.

• Outdoor Spaces: Features like patios, balconies, and fire pits enhance the guest experience, making the property more appealing for relaxation and social gatherings.

• High-Speed Internet: With remote working becoming more prevalent, guests often look for properties that provide reliable internet service.

By tailoring offerings to meet guest preferences, owners can increase occupancy rates and boost overall satisfaction.

In recent years, the regulatory landscape for short-term rentals in Florida has become increasingly stringent. Clewiston's local government has implemented specific regulations aimed at ensuring the safety and compliance of rental properties. Key points to consider include:

• Licensing Requirements: Property owners must obtain the required licenses to operate legally. This includes adhering to local safety codes and inspections.

• Zoning Restrictions: Certain neighborhoods may impose restrictions on short-term rentals, limiting the number of permissible units or establishing minimum stay requirements.

• Tax Compliance: Rentals are subject to state and local transient rental taxes, which property owners must collect and remit appropriately.

Staying updated on regulations and ensuring compliance is crucial for short-term rental investors to avoid penalties and protect their investment.

Clewiston features several neighborhoods, each attracting different demographics and influencing rental potential.

The short-term rental market in Clewiston is expected to evolve over the next few years. Key trends influencing this outlook include:

• Increasing Demand for Unique Experiences: Travelers are seeking accommodations that provide distinctive local experiences, prompting property owners to adopt more personalized offerings.

• Growth of Remote Work: As more individuals work remotely, there may be significant opportunities in the long-term rental market, particularly during off-peak seasons.

• Sustainability in Rentals: Eco-friendly practices and amenities will become increasingly important to guests, necessitating shifts in how properties are marketed and operated.

• Enhanced Marketing Strategies: Utilizing social media and digital marketing to reach target demographics will be crucial for staying competitive in the market.

Overall, the future of short-term rentals in Clewiston appears promising, provided that investors remain adaptable and responsive to changing tourism trends.