Plymouth, Massachusetts

Plymouth, Massachusetts, renowned for its rich history and coastal landscapes, is becoming an increasingly significant player in the short-term rental market. The area's unique blend of historical sites, beautiful beaches, and access to outdoor activities has attracted both domestic and international visitors. Given its appeal as a tourist destination, particularly during the summer and fall months, Plymouth presents a favorable environment for short-term rental investment.

As of 2023, the current average daily rate (ADR) in Plymouth stands at $401.77. This figure is indicative of a market that has matured in terms of rental potential but is also indicative of the increasing desirability of the area among travelers seeking accommodations that allow them to experience local culture and amenities.

Performance indicators provide insight into the current state and potential of the short-term rental market in Plymouth:

• Average Daily Rate (ADR): $401.77
• Occupancy Rate: Approximately 68% on average, varying seasonally.
• Revenue per Available Room (RevPAR): Calculated to be around $273.20, illustrating the short-term rental market's effectiveness.
• Growth in Listings: The number of short-term rental listings has increased by about 10% per year, reflecting increasing interest in investment opportunities in the area.

These KPIs indicate a healthy market that could receive sustained interest from both guests and investors.

Analyzing the growth of the short-term rental market within Plymouth over the past decade shows a clear upward trajectory. In 2013, the estimated ADR was around $175 per night, which indicates approximately a 129% increase in the average daily rate over ten years. This growth can be attributed to several factors:

• Increased tourism boosted by local attractions such as the Plymouth Rock, Mayflower II, and various national and state parks.
• A growing trend towards experiential travel, encouraging visitors to stay longer and engage more with the local community.
• The expansion of platforms like Airbnb and VRBO, which have made it easier for property owners to list and manage their rentals.

While the growth reflects positive trends, it's essential for investors to remain aware of potential market saturation as the number of listings continues to rise.

Given current metrics, investing in short-term rentals in Plymouth can yield significant returns. The effective rental income, buoyed by a healthy ADR of $401.77, provides ample opportunities for profitability. Initial calculations based on the occupancy rate estimated at 68% suggest an annual revenue potential of approximately $100,000 per property (based on 240 nights booked at the current ADR).

Considering initial acquisition costs, renovation expenses, and operational costs (including utilities, maintenance, property management, etc.), investors may see a return on investment (ROI) around 10-15% depending on the location and appeal of the property.

However, potential investors must undertake thorough due diligence, factoring in local market conditions and future growth.

Plymouth experiences distinct seasonal fluctuations that can significantly affect performance metrics. The peak tourist season runs from late spring through early fall (typically May to September), during which the demand for short-term rentals can spike as families and tourists flock to the beaches and historical sites.

• Spring (March – May): Typically begins with a slower pace as temperatures start to rise. However, Easter and events such as Plymouth’s Waterfront Festival lead to gradual increases in bookings.

• Summer (June – August): This is the high season with the highest occupancy levels. Rentals can often be booked well in advance, with pricing at its peak due to high demand.

• Fall (September – November): Although occupancy typically drops after Labor Day, fall foliage and historical events like Thanksgiving festivals can prolong the season, appealing particularly to families and history enthusiasts.

• Winter (December – February): The winter months experience the lowest occupancy rates. However, short-term rentals can still attract guests looking for winter getaways or those attending local events.

Understanding this seasonal trend is crucial for investors aiming to optimize pricing strategies and capitalize on peak demand periods.

Different property types yield varying levels of investment success in the Plymouth market. Key observations include:

• Single-Family Homes: These properties tend to perform well, especially if they are near the waterfront or historical sites. Average daily rates can reach $450 or more during peak season.

• Condos/Townhouses: Typically more affordable than single-family homes, these rentals can cater to smaller groups or couples. The ADR for these properties typically ranges around $325.

• Luxury Vacation Rentals: Higher-end properties generally yield higher ADRs, averaging around $600+ during the summer months, appealing to families seeking premium accommodations.

• Shared Room/Private Room Options: Although less common in Plymouth, shared accommodation settings can cater to budget travelers, attracting a different demographic.

Investors should consider targeting properties that meet the demand in their specific market niche while keeping in mind property management and operational needs.

Today's travelers increasingly seek specific amenities that enhance their stay, impacting their choice of short-term rental. Key preferences noted from recent surveys include:

• High-Speed Internet: With the increasing trend toward remote work, travelers prioritize reliable internet access.

• Parking: Many visitors prefer properties that offer dedicated parking, especially those traveling with families.

• Outdoor Spaces: Decks, patios, and gardens are particularly appealing, allowing guests to enjoy the scenery and fresh air.

• Pet-Friendly Options: An increasing number of travelers are looking for accommodations that allow pets, making these properties more desirable.

Likewise, professional cleaning protocols and adherence to safety measures are becoming essential considerations for guests during the booking process.

The regulatory landscape for short-term rentals in Plymouth is evolving, posing both opportunities and challenges for investors. In Massachusetts, cities and towns have been granted the ability to impose local regulations. Plymouth has been implementing regulations to ensure compliance, focusing on safety standards, registration requirements, and enforcing limits on rental days for residents who rent out their primary homes.

Current regulations include:

• Registration Requirements: Owners must register their properties and acquire a local permit to operate short-term rentals legally.

• Liability Insurance: Mandatory liability insurance is required to operate short-term rentals, providing protection for both property owners and guests.

Failure to comply with local regulations can result in heavy fines and restrictions on rental activity, making it imperative for investors to stay informed about current laws and any changes on the horizon.

Plymouth’s neighborhoods offer diverse opportunities for short-term rentals, complete with their unique characteristics. Key neighborhoods include:

• Downtown Plymouth: Bustling with shops, dining, and close proximity to major attractions, this area appeals to tourists and generally boasts higher occupancy rates.

• Plymouth Waterfront: Airbnbs in this area enjoy picturesque views and proximity to beaches, drawing visitors seeking peace and leisure.

• Manomet: A quieter area, desirable for its natural surroundings and family-friendly atmosphere, attracting guests looking for family vacations.

• North Plymouth: A more residential area that can appeal to budget travelers, often offering more affordable rental options.

Investors should consider neighborhood dynamics, market demand, and property characteristics when selecting investment locations to maximize potential returns.

The trajectory of Plymouth's short-term rental market suggests a continued upward trend, driven by factors such as:

• Growing Interest in Historical Tourism: Increased interest in Plymouth's historical significance can lead to year-round visitors.

• Remote Work Trends: A sustained shift towards remote work may expand occupancy rates in the shoulder season as more individuals seek temporary accommodations.

• Sustainable Tourism Initiatives: Efforts to market sustainable tourism can attract eco-conscious travelers, leading to a surge in demand for properties earlier in the year or through the fall.

• Cancellation Flexibility: Many travelers now favor properties that offer flexible cancellation policies, influencing booking decisions.

It’s crucial for short-term rental investors to stay alert to these trends, adapting their offerings accordingly to maintain competitiveness in the evolving market landscape.