Mattapoisett, Massachusetts

Mattapoisett, located on the picturesque southern coast of Massachusetts, is known for its coastal charm, rich maritime history, and proximity to scenic beaches. As a small town with a population of just over 6,000, Mattapoisett attracts tourists looking for a tranquil getaway that still offers access to larger urban amenities in nearby New Bedford and Fairhaven. The short-term rental market has seen a notable variety in recent years, driven by both seasonal visitors and increasing demand for unique travel experiences.

With a current Average Daily Rate (ADR) of $337.77, operators in this market can find promising opportunities; however, an in-depth understanding of the local dynamics is essential for success.

Key performance indicators (KPIs) provide an understanding of the short-term rental landscape in Mattapoisett:

1. Average Daily Rate (ADR): Currently stands at $337.77, which is relatively high compared to neighboring areas, reflecting both its appealing location and quality of accommodations.

2. Occupancy Rate: Estimated at 58%, which is moderate and suggests that while there’s potential for profitability, competition is quite prevalent.

3. Revenue Per Available Room (RevPAR): Calculated by combining current ADR and the occupancy rate, the RevPAR for Mattapoisett is approximately $196.12 ($337.77 * 0.58), indicating a healthy revenue potential per rental unit.

4. Booking Lead Time: Data shows that guests typically book 3-4 months in advance, hinting at the importance of preparing listings ahead of peak periods.

5. Average Length of Stay: Average stays are approximately 3 nights, highlighting a preference among guests for weekend getaways or short vacations.

Examining the long-term growth trends over the last decade indicates an upward trajectory for the short-term rental market in Mattapoisett.

1. Market Shift: Traditionally, Mattapoisett's economy has relied heavily on summer tourism, but the introduction of platforms like Airbnb and Vrbo has diversified the rental market.

2. Revenue Growth: Historical data suggests a steady growth in rental income, with a reported increase of around 25% in average nightly rates since 2013.

3. Supply Expansion: The number of available short-term rentals has grown significantly, from approximately 100 listings in 2013 to around 250 in 2023, responding to increased demand.

Despite this growth, the increase in rental supply indicates that competition will be crucial for maintaining occupancy and rates.

The investment potential in Mattapoisett appears promising for short-term rental investors considering both the current ADR and occupancy trends.

1. Initial Investment: The average cost of property varies considerably depending on location and property type but generally falls in the range of $500,000 to $1.5 million for single-family homes.

2. Projected Returns: With the current ADR of $337.77 and an average occupancy rate of 58%, investors can estimate gross revenues reaching approximately $73,000 annually if they operate year-round.

3. Expenses and Net Income: Considering typical operational costs (cleaning, property management, utilities, maintenance, and platform fees) of around 25-30% of revenues, the net income may average around $51,000 per year per rental.

4. Return on Investment (ROI): Assuming a purchase price of $750,000 and annualized net income of $51,000, the ROI would be roughly 6.8%, which is in line with the broader market for robust vacation destination areas.

Understanding seasonal fluctuations is crucial for optimizing occupancy rates and pricing strategy in Mattapoisett.

1. Peak Season: From Memorial Day through early September, Mattapoisett sees its highest occupancy rates, often exceeding 80%. This surge is driven by both vacationing families and events such as summer boating regattas.

2. Shoulder Season: The spring months (April-May) and fall (September-October) witness a dip in occupancy but still attract weekend visitors. Rates can be adjusted downwards to capture this demographic.

3. Off-Peak Season: November through March indicates a sharp decline in rentals with occupancy rates dropping to around 30%. Strategies such as offering discounts for longer stays may help mitigate the drop.

The type of property significantly impacts performance in the short-term rental market.

1. Single-Family Homes: These properties often perform well due to their appeal to families and larger groups, commanding higher occupancy rates compared to smaller units.

2. Condos and Townhomes: These offer a more affordable avenue for travelers, typically attracting younger couples seeking coastal getaways. Their occupancy tends to be stable but may yield lower ADRs.

3. Luxury Rentals: High-end properties, particularly those with waterfront views, command premium rates and can achieve higher occupancy during peak seasons, albeit with a smaller overall market segment.

Understanding what guests are looking for can help in tailoring offerings that stand out in Mattapoisett's competitive landscape.

1. Desirable Amenities: Properties equipped with kitchens, outdoor spaces, Wi-Fi, and access to the beach are often rated higher by guests. Unique amenities such as paddleboards, kayaks, or bicycles could provide an edge.

2. Local Experiences: Given the growth in experiential travel, guests express interest in localized dining, boating activities, and cultural events. Properties that can provide local guides or recommendations often receive favorable reviews.

3. Cleanliness and Safety: The post-pandemic era has made cleanliness a top priority for guests. Emphasizing cleaning protocols and outdoor spaces can significantly enhance attraction.

The regulatory environment for short-term rentals in Mattapoisett has been evolving, impacting the operational landscape for investors.

1. Permits and Licenses: Operators are required to have permits, which may include a short-term rental registration with the town. Familiarizing oneself with these requirements is essential.

2. Zoning Laws: Specific zones may restrict short-term rentals. Investors must ensure that their properties are in compliance with local zoning ordinances to avoid potential issues.

3. Taxation: The local regulations may include certain taxes on short-term rentals, including occupancy taxes, which should be factored into pricing strategies to maintain profitability.

A detailed look at various neighborhoods within Mattapoisett reveals distinct characteristics that can impact rental performance.

1. Nedeska Neighborhood: Close to beaches and with a selection of oceanfront properties, this area tends to attract higher nightly rates and occupancy.

2. Harbor District: Known for its marina and local dining options, properties here can capitalize on guests looking for boating and fishing excursions.

3. South Mattapoisett: A quieter, residential area appealing to families and longer-term visitors, offering diverse amenities, parks, and quieter beaches.

The future outlook for short-term rentals in Mattapoisett remains cautiously optimistic.

1. Demand for Unique Stays: Continuing trends in travel preference suggest that travelers are increasingly seeking unique experiences. Properties that offer extraordinary settings or experiences may see increasing success.

2. Technology Integration: The rise of smart home technology and booking platforms will continue to shape guest experiences and operational efficiency.

3. Sustainability Practices: With a growing emphasis on sustainable travel, properties that adopt eco-friendly practices may appeal to a conscientious segment of the market.

1. What is the Average Daily Rate in Mattapoisett?
As of the latest data, the average daily rate for short-term rentals is $337.77.

2. What is the typical occupancy rate?
Short-term rentals in Mattapoisett typically have an occupancy rate of around 58%.

3. Are there regulations for short-term rentals in Mattapoisett?
Yes, property owners need to comply with local permits, zoning laws, and potential occupancy taxes.

4. What types of properties perform the best?
Single-family homes and luxury rentals generally perform well due to their appeal among larger groups, while condos attract a younger demographic.

5. How should I price my rental?
Pricing should reflect seasonal demand, local competition, and the amenities offered by your property, alongside a consideration of occupancy trends.

In summary, Mattapoisett presents a unique market for short-term rental investors, offering a blend of coastal charm and a growing demand among visitors. Investors can achieve favorable returns with informed choices based on market data and emerging trends.