Goddard, Kansas

Goddard, Kansas, a city located in Sedgwick County just west of Wichita, has emerged as a notable location for short-term rentals. The city's population has experienced steady growth, leading to increased demand for various types of accommodations, particularly from travelers seeking proximity to urban amenities without the hustle and bustle of the larger city. With an average daily rate (ADR) currently standing at $157.13, the market shows promise for both investors and hosts alike.

The local real estate market reflects a mix of residential properties and commercial ventures, with the short-term rental segment catering to tourists, business travelers, and families. As an emerging market, Goddard presents opportunities that are becoming more attractive as it develops.

Current performance indicators suggest a strong short-term rental market:

• Average Daily Rate (ADR): $157.13
• Occupancy Rate: Approximately 65%
• Monthly Availability: Rentals in the area report, on average, around 20 days of rental availability per month.
• Annual Revenue Potential: Based on the ADR and occupancy rate, properties can generate up to $17,500 in annual rental income, given a rental period of roughly 10 months.

These indicators suggest a relatively healthy market. A 65% occupancy with an ADR of $157.13 is favorable, particularly in a growing suburb like Goddard.

Over the past decade, Goddard has experienced consistent population growth, rising from about 4,000 residents in 2010 to approximately 5,000 in 2023. This increase is partially attributable to an influx of families and professionals seeking a suburban lifestyle near urban centers.

Real estate prices in Goddard have also risen in tandem with population growth, with homes appreciating by an average of 3-5% per year over the last ten years. As the city continues to develop, long-term appreciation potential remains favorable for short-term rental investments.

The demand for short-term rentals has further been buoyed by several factors:

1. Proximity to Wichita: Just a 20-minute drive, Goddard benefits from visitors to Wichita while offering an escape from the city.
2. Growing Family and Business Traveler Segments: Goddard is increasingly popular with families visiting nearby attractions and business travelers.

Looking forward, the growth trajectory appears to remain positive as the local government continues to invest in infrastructure and community development.

For investors considering a short-term rental in Goddard, the projected return on investment (ROI) is attractive. Calculating potential ROI involves understanding both fixed and variable costs, which include property acquisition, property management fees, maintenance, and utility expenses.

Assuming a property purchase price of $250,000 and utilizing an estimated monthly gross rental income of $1,500 based on current ADR and occupancy rates, the potential financial breakdown could look like this:

• Annual rental income: $18,000 (based on an assumption of 10 months of occupancy)
• Operating expenses (estimated at 30% of rental income): $5,400
• Net operating income: $12,600

Considering the initial investment and potential income, this translates into a ROI of around 5.04%. While this is competitive for many vacation markets, systematic cost management can potentially improve returns.

Seasonality plays a significant role in short-term rental dynamics in Goddard.

• Peak Seasons: Summer months, particularly June through August, see increased demand due to school vacations. Local activities and events can draw both local and regional visitors.
• Shoulder Season: Spring and Fall months typically experience moderate levels of occupancy, as families and individuals seek out weekend getaways.
• Off-Peak Season: Winter months tend to show lower occupancy rates; however, holiday travel can occasionally supplement bookings.

Understanding these seasonal flows allows property owners to strategize pricing and availability to maximize revenue.

In Goddard, a variety of property types cater to different traveler demographics:

1. Single-Family Homes: The most common, appealing to families with space and amenities contributing to higher occupancy.
2. Condos and Townhomes: These attract business travelers and couples seeking comfort without the maintenance burden of a larger home.
3. Luxury Rentals: Smaller segments targeting higher-income travelers seeking premium experiences, although this segment remains underdeveloped.

Market data suggest that single-family homes generally outperform other property types, owing to larger family size accommodations, amenities like backyards, and proximity to parks.

Research into guest preferences indicates a few critical amenities that can significantly enhance a rental's attractiveness:

• Family-Friendly Features: Properties that come equipped with cribs, high chairs, and outdoor space score highly among family travelers.
• Wi-Fi and Remote Work Facilities: With the rise of remote work, travelers increasingly value reliable internet and comfortable office spaces.
• Pet-Friendly Options: Catering to travelers with pets can improve bookings as pet travel continues to rise.
• Local Experiences: Offering guides or contacts for local events or attractions can also attract guests seeking unique experiences.

Being proactive in adjusting offerings to match guest expectations is instrumental in achieving high occupancy rates.

Investors considering entry into the short-term rental market in Goddard must be aware of the local regulatory framework. Currently, Sedgwick County imposes specific rules regarding licensing, zoning, and taxation.

Licenses are required to operate a short-term rental legally, and adherence to safety and health codes is mandatory. Furthermore, registering occupancy taxes on rental income is essential for compliance.

Given the evolving nature of short-term rental regulations, investors should remain informed about any changes that may impact their operations, including potential restrictions and zoning laws.

Goddard's neighborhoods vary in character, amenities, and accessibility, making neighborhood selection a vital consideration for short-term rental investors. Key neighborhoods include:

1. Goddard Heights: A family-oriented area with access to parks and schools, appealing to families.
2. Quail Creek: This neighborhood showcases newer developments and often attracts younger professionals due to its modern amenities and spacious homes.
3. Downtown Goddard: Home to local businesses, restaurants, and cultural attractions, this area may appeal to both tourists and business travelers.

Investors should prioritize neighborhoods based on target guest demographics and anticipated rental income.

As we look to the future of short-term rentals in Goddard, several trends are worth monitoring:

1. Growing Tourism: Increased promotion of nearby attractions and events may generate more travel interest in the area.
2. Rising Remote Work: The trend toward more flexible work arrangements could encourage longer stays, leading to shifts in renting patterns.
3. Community Events: Organizing or supporting local events could create additional marketing opportunities for short-term rentals, potentially enhancing guest engagement.

Investors should keep an eye on these dynamics to tailor their properties and marketing strategies accordingly for sustained success.

Q: What are the average rental prices in Goddard?
A: The current average daily rate is approximately $157.13, but prices can vary by property type and location.

Q: How do I obtain a short-term rental license in Goddard?
A: Investors must apply through the Sedgwick County government, adhering to local regulations and safety requirements.

Q: What is the average occupancy rate for short-term rentals in Goddard?
A: The average occupancy rate is around 65%, depending on the season and property type.

Q: Are there specific restrictions on short-term rentals in Goddard?
A: Yes, operating a short-term rental requires adherence to local zoning laws, including obtaining the necessary permits and licenses.

Q: What amenities can increase demand for my rental property?
A: Family-friendly features, dependable Wi-Fi, pet-friendly options, and local experience guides tend to enhance appeal and improve occupancy rates.

As Goddard continues to develop and evolve, the short-term rental market holds promising opportunities for savvy investors. Remaining informed, flexible, and responsive to market changes will be key to maximizing success in this emerging market.