Campton, New Hampshire

Campton, New Hampshire, nestled within the scenic White Mountains, has been drawing the attention of short-term rental investors in recent years. The geographic landscape coupled with its recreational offerings makes it an appealing destination for both summer and winter activities. While traditionally known for its outdoor adventures, such as hiking, skiing, and mountain biking, the area has experienced a growing interest in short-term rental properties.

In recent years, Campton has appealed to both domestic tourists seeking a quick getaway from urban centers and visitors from abroad looking for a unique New England experience. However, potential investors must navigate a market with fluctuating occupancy rates, average daily rates (ADR), and seasonal shifts. With a current ADR of $304.51, it's crucial to consider various factors that influence the market dynamics.

Before diving deeper into the market, let’s review some fundamental key performance indicators (KPIs) that define the short-term rental landscape in Campton:

• Average Daily Rate (ADR): $304.51
• Occupancy Rate: Approximately 60% (subject to seasonal fluctuations)
• Revenue Per Available Room (RevPAR): This can be calculated as ADR multiplied by the occupancy rate, resulting in about $182.71.
• Average Length of Stay: Typically, guests stay for 3-5 nights.
• Types of Rentals: A mix of single-family homes, cabins, and condos primarily catering to families and adventure-seekers.

These KPIs collectively provide a snapshot of the performance of short-term rentals in Campton, indicating a market that is both profitable and competitive.

Over the past decade, the short-term rental market in Campton has seen a consistent increase in interest from investors and travelers alike. Market data suggests that:

• 2013-2019: The market showed incremental growth, with a steady increase in rental inventory. The introduction of platforms like Airbnb and VRBO played a significant role, expanding visibility.
• 2020: The COVID-19 pandemic led to temporary declines in occupancy rates as travel restrictions were implemented. However, the nearby outdoor attractions facilitated a faster recovery.
• 2021-2023: Post-pandemic shifts in guest preferences toward remote work and nature-focused getaways led to a resurgence. The area experienced year-over-year increases in both revenue and guest numbers.

Data analytics indicate a compound annual growth rate (CAGR) of about 10% within the short-term rental sector over the last decade, revealing substantial potential for continued investment growth.

Investing in short-term rentals in Campton comes with notable opportunities but also challenges. The current ADR of $304.51 positions investors well, especially with a potential 60% occupancy rate translating to significant annual revenue.

• Projected Annual Revenue: For a property rented consistently throughout the year at the current ADR, assuming a moderately conservative occupancy rate:

  Yearly Revenue = ADR x Occupancy Rate x Nights in a Year
  Yearly Revenue = $304.51 x 0.60 x 365 = approximately $66,895.

• Expenses: Operating costs (property management fees, maintenance, utilities, and property taxes) typically consume about 30%-40% of gross revenue.

Evaluating the Return on Investment (ROI) then becomes vital. A well-maintained property can yield an ROI upwards of 10% within a three to five-year period, significantly benefitting from increasing market demand for short-term rentals in this picturesque region.

The Campton market experiences noticeable seasonal patterns:

• Summer Season (May – September): Typically sees the highest occupancy rates, driven by hiking, camping, and families on vacation. This period is characterized by higher daily rates, with residences fully booked weeks in advance.

• Fall (October – November): The fall foliage attracts visitors, although occupancy may vary. Rates start to drop, and properties typically adjust pricing accordingly.

• Winter Season (December – March): A pivotal time due to proximity to ski resorts and winter recreational activities. Capable of achieving occupancy rates over 70% during peak winter months despite the challenges of weather-related shutdowns.

• Spring (April): Generally regarded as a shoulder season, bookings tend to dip before summer begins, leading to lower revenues.

Understanding these seasonal trends is critical when developing an investment portfolio, as they directly affect pricing strategies and marketing efforts.

In Campton, performance varies by property type:

• Single-Family Homes: Ideal for families or larger groups, these account for a substantial percentage of the rental market. They usually command higher ADRs but may face competition from condos and multi-unit properties.

• Cabins and Chalets: These are particularly popular in winter, often fetching premium rates during ski season. Unique designs and proximity to winter activities drive their appeal.

• Condos: Generally cater to couples and smaller groups. While slightly lower in ADR, they can benefit from higher occupancy rates due to affordability.

• Unique Stays (Glamping, Treehouses): A niche market that draws specific segments, often creating a buzz for Instagram-worthy experiences; however, their popularity can fluctuate based on marketing efforts.

Investors should closely assess local demands to determine which property types will yield the highest returns, taking into account maintenance and operational expenses.

Analyzing guest preferences in Campton can provide valuable insights into what investments could yield high returns:

• Outdoor Amenities: Properties with features like hot tubs, fire pits, or access to hiking trails tend to attract more guests seeking nature experiences.

• Comfort Facilities: High-quality linens, modern kitchens, and entertainment options (Wi-Fi, Smart TVs) rank highly on guest reviews. Cleanliness and ongoing maintenance also play crucial roles in securing repeat bookings.

• Local Experiences: Guests increasingly appreciate recommendations for local dining options and outdoor activities. Providing curated guidebooks or engagement with local tour companies can enhance guest experiences.

Understanding these preferences is essential for property management improvements and ensuring positive guest interactions, impacting overall ratings and repeat bookings.

Campton operates under state regulations regarding short-term rentals, which can vary significantly from more regulated areas:

• Assessment of Licenses: Property owners wishing to enter the short-term rental market must typically comply with local zoning laws and noise ordinances.

• Tax Liabilities: New Hampshire does not impose a Sales and Meals Tax, but short-term rental operators should remain cognizant of transient occupancy taxes initiated by other local jurisdictions.

As regulations often evolve, investors must stay informed to ensure compliance. Engaging with local real estate associations may provide periodic updates and guidance.

Campton comprises various neighborhoods, each offering unique attractions:

• Central Campton: Close to shops and restaurants, this area typically attracts families visiting the local parks. Proximity to amenities can boost occupancy rates.

• East Campton (near ski resorts): The location appeals more to winter sports enthusiasts and draws premium pricing during the season’s peak.

• Rural Areas: Some guests prefer secluded homes for relaxation. These can provide competitive pricing over the summer for those seeking tranquility away from more tourist-heavy areas.

An analysis of each neighborhood’s amenities, potential tourist interest, and accessibility will provide a strategic advantage for prospective investors.

Looking ahead, several trends may shape the future of the short-term rental market in Campton:

• Growing Demand for Unique Stays: There is increasing demand for distinctive accommodations that provide unique experiences, pushing investors to explore creative property offerings.

• Sustainability and Eco-friendly Practices: More travelers are valuing sustainable practices, so properties that emphasize environmental responsibility may find a competitive edge.

• Flexibility in Work Policies: The rise of remote work means that longer-term rentals during off-peak seasons might become more attractive to many guests.

Investors can capitalize on these trends by adjusting property offerings, marketing approaches, and engagement strategies with potential guests.

1. What is the average daily rate for short-term rentals in Campton?

   • The current ADR for short-term rentals in Campton is approximately $304.51.

2. How significant is the occupancy rate for short-term rentals?

   • The occupancy rate currently hovers around 60%, varying by season and property type.

3. What types of properties perform best in Campton?

   • Single-family homes, cabins, and chalets tend to perform well, especially during peak seasons focused on outdoor activities.

4. What regulations should I be aware of when investing in short-term rentals?

   • Investors should familiarize themselves with local zoning laws, licensing requirements, and any applicable transient occupancy taxes.

5. How should I price my rental property?

   • Pricing should reflect local market conditions, the property type, seasonal trends, and competitive pricing of similar properties.

Investing in Campton’s short-term rental market can be fulfilling and lucrative with careful planning, market knowledge, and attention to guest needs. This enchanting destination continues to evolve, offering a promising landscape for both new and seasoned investors alike.