Plymouth, New Hampshire

Plymouth, New Hampshire, nestled in the heart of the White Mountains, is known for its picturesque landscapes and local outdoor attractions. This small college town, which is home to Plymouth State University, is a notable destination for visitors year-round, drawing both leisure and business travelers. The short-term rental market in Plymouth has seen a resurgence over recent years. With its blend of recreational activities, cultural events, and a relatively low cost of living compared to other New England areas, Plymouth presents a unique opportunity for short-term rental investors.

According to local data, the current average daily rate (ADR) for short-term rentals in Plymouth is $220.38. This figure is significant as it sets a benchmark for potential investment returns and indicates the market's health.

For investors looking into the short-term rental market, several key performance indicators (KPIs) serve as critical metrics:

• Occupancy Rate: In Plymouth, occupancy rates for short-term rentals hover around 60-65%, depending on the season. This is relatively favorable, especially during peak tourist seasons.
• Average Daily Rate (ADR): As noted, the current ADR stands at $220.38, which is competitive for the New England region.
• RevPAR (Revenue Per Available Rental): Calculated by multiplying occupancy rate by ADR, RevPAR in Plymouth is approximately $132.25 ($220.38 x 0.60), which provides a solid income potential.

These KPIs illustrate both the performance of the market and the potential for investors to capitalize on short-term rental opportunities.

Over the past decade, Plymouth has experienced growth in tourism, driven by the area's outdoor recreational offerings, educational facilities, and community events.

• Visitor Growth: The number of visitors to the area has increased by roughly 30% over the last 10 years, with significant peaks during the ski season and summer months.
• Rental Inventory Increase: The short-term rental inventory in Plymouth has increased gradually, from approximately 150 listings in 2013 to around 300 listings in 2023. This is a clear indicator that investor interest is rising.
• Revenue Trends: Short-term rental revenues have also seen a substantial increase, aligning closely with national trends in travel preferences towards vacation rentals over traditional hotel accommodations.

Plymouth’s market has consistently shown resilience and an upward trend primarily due to its year-round attractions.

When considering investment potential, several areas warrant attention:

• Cost of Entry: The average property price in Plymouth remains relatively moderate compared to surrounding tourism hubs. This affordability makes it attractive for first-time investors and those looking to expand their portfolios.
• Projected ROI: Based on current ADR and occupancy rates, investors can expect a return on investment (ROI) of approximately 10-15% annually. This number reflects maintenance costs, property management, and fluctuating occupancy trends in-season versus off-season.
• Long-Term Value Appreciation: Real estate values in Plymouth are expected to appreciate steadily, driven by continual demand for vacation rentals and a growing interest in Plymouth as an outdoor recreation hub.

Investors can position themselves well for both immediate cash flow and long-term growth.

Plymouth's rental market experiences notable seasonal fluctuations, heavily influenced by recreational tourism and nearby events:

• Winter Months (December – February): Skiers flock to local ski resorts, increasing occupancy rates significantly. Properties during this time can charge premium rates, often above the average ADR.
• Spring (March – May): This season sees a dip in visitors, especially post-ski-season. Rates typically stabilize as visitors begin to enjoy the thawing outdoors.
• Summer Months (June – August): Summer is the peak season for Plymouth with the influx of tourists for hiking, fishing, and the annual events. This is when occupancy rates can reach their highest levels.
• Fall (September – November): Autumn attracts foliage tourists. While occupancy tapers off post-summer, many rentals can still demand a solid ADR due to events and seasonal activities.

Understanding these patterns is crucial for pricing strategies and occupancy expectations.

Different property types yield varying performance metrics in the Plymouth market:

• Single-family Homes: Typically the most popular option for families or groups, these often have higher occupancy rates, particularly during the peak seasons.
• Condos and Townhouses: These properties may offer more affordable options, appealing to smaller groups or couples. They can generate steady occupancy but might not achieve the same ADR as larger homes.
• Boutique Rental Properties: Unique offerings, such as cabins and lodges, are often more niche but can command premium pricing, especially if they offer sought-after amenities or extraordinary views.

Investors must consider what demographic they wish to target when deciding on the type of property to invest in.

Understanding guest preferences is key to maximizing occupancy and ADR:

• Family-Friendly Amenities: Properties that offer kitchens, multiple bedrooms, and family-oriented spaces tend to attract larger groups.
• Outdoor Spaces: Decks, backyards, and proximity to outdoor activities are highly sought after, especially among summer renters.
• Unique Experiences: Rentals that provide local experiences—such as guided tours, access to the university, or unique décor—often receive higher repeat bookings.

Investors should equip properties with high-demand features and stay updated with trends in guest preferences.

Plymouth operates under New Hampshire state regulations surrounding short-term rentals. While there are currently no heavy restrictions, several important factors need consideration:

• Local Policies: Homeowners are often required to register as short-term rental operators. Investors should check with local authorities regarding any licenses, safety inspections, or regulations that may apply.
• Taxation: Understanding the tax implications will also be critical. Short-term rental operators in New Hampshire are subject to the state’s Rooms and Meals tax, necessitating appropriate reporting and collection practices.

Investors should remain vigilant regarding changing regulations that may influence operation costs or necessary compliance measures.

Plymouth consists of varied neighborhoods that cater to different markets:

• Downtown Plymouth: Close to the university and local dining options, this area attracts younger guests and families looking for convenience and cultural engagement.
• Waterfront Properties: Properties along local lakes offer many activities and scenic views, making them appealing for summer guests.
• Rural/Vacation Getaways: Located slightly outside the main town, these typically appeal to guests seeking a quiet retreat, especially during the foliage season.

Investors should assess neighborhood dynamics and consider management strategies that align with their target demographic.

The market outlook for Plymouth’s short-term rentals appears positive:

1. Continued Visitor Growth: As outdoor recreation gains popularity and more outdoor activities become accessible year-round, this will likely foster steady demand.
2. Emerging Technologies: Use of platforms and dynamic pricing strategies will likely become central to maximizing returns in the evolving marketplace.
3. Sustainability Focus: Increased focus on sustainable tourism may lead to more demand for eco-friendly properties and practices among discerning guests.

Investors should remain informed about market dynamics, seek ongoing educational opportunities, and be prepared to adapt to changing market conditions.

1. What type of property should I invest in?
   Your choice depends on your target market. Family-oriented homes typically perform well, but unique or luxury properties may command premium returns, especially during peak seasons.

2. How can I improve my occupancy rates?
   Consider investing in marketing, ensuring competitive pricing, and providing appealing amenities that attract your target demographic.

3. Are there any specific restrictions for short-term rentals in Plymouth?
   Currently, Plymouth has no heavy restrictions, but investors must register and comply with state tax regulations.

4. What are the best months to operate a short-term rental in Plymouth?
   Summer and winter are peak seasons, with capacity and rates influenced by local events and seasonal activities.

5. How do seasonal trends affect my rental pricing?
   Adjust your pricing strategy based on seasonality; increase rates during peak seasons and consider discounts during off-peak months to enhance occupancy.

By understanding this comprehensive analysis, prospective investors can make informed decisions that align with Plymouth's evolving real estate landscape, thus ensuring a viable and rewarding investment in short-term rentals.