Bartlesville, Oklahoma

Bartlesville, located in northeastern Oklahoma, is in a unique position when it comes to the short-term rental (STR) market. Known for its rich history, art deco architecture, and proximity to natural attractions like the Osage Hills State Park, Bartlesville has been gradually attracting both leisure and business travelers. Additionally, it is home to several major companies, which bolsters the demand for short-term housing, especially among business professionals.

The STR market is still relatively nascent compared to larger tourism cities. However, the potential for growth is seen through increasing interest in local leisure and business travels. Investors looking to enter this market should weigh both the opportunities and risks involved, considering both regional characteristics and demand dynamics.

Understanding the performance metrics provides essential insights for investors. As of the current market analysis, the Average Daily Rate (ADR) sits at approximately $105.71. This figure serves as a fundamental indicator of pricing power and market health.

Other key performance indicators include:

• Occupancy Rate: While specific figures are yet to be published, the growth in tourism and business travel suggests that occupancy rates are likely improving.
• RevPAR (Revenue Per Available Room): Given that the ADR is $105.71, RevPAR is essential to gauge as it factors in occupancy rates.
• Booking Lead Time: In Bartlesville, guests tend to book accommodations within a 2-3 week timeframe, mainly due to business travel patterns.

These metrics provide a foundation for evaluating whether an investment in Bartlesville's STR market is prudent.

Examining the past decade's growth patterns is critical for understanding Bartlesville's trajectory. Over the last ten years, the city has seen moderate population growth alongside an increase in road infrastructure and urban amenities—both contributing positively to the potential for short-term rentals.

Tourism has been bolstered by local events, cultural festivals, and corporate conferences. Bartlesville has also seen investments in arts and local attractions, further enhancing its profile as a tourist destination:

• Year-over-year revenue for the hospitality sector is on an upward trend.
• Increased investments have been funneled into marketing the city as a viable destination.

Despite the overall slow growth of the regional economy, the diversification of assets and establishments demonstrates the potential for higher returns in the STR market.

For short-term rental investors, identifying the right market is crucial. The potential ROI in Bartlesville can vary based on factors such as property type, location, and seasonal demand fluctuations. Below are key insights:

• Initial Investment: The average price for a home in Bartlesville is lower than the national average, providing investors the opportunity to enter the STR market with a relatively lower initial capital outlay.
• Returns: Based on the current ADR of $105.71 and assuming an occupancy rate ranging from 50% to 70%, investors could anticipate monthly revenues between $1,000 and $1,800. When juxtaposed against operational costs, this could translate to a cash-on-cash return of around 10%-15% annually, assuming proper management.

However, prospective investors should conduct detailed calculations based on their specific circumstances, as fluctuating management costs, service fees, and local taxes can affect profitability.

Bartlesville does experience seasonal patterns that can affect STR occupancy and pricing dynamics.

• Peak Seasons: Spring and Fall are characterized by a number of events and pleasant weather, leading to higher occupancy rates. Business travel tends to spike during these times when conferences and events take place.
• Off-seasons: The winter months typically see a downturn in leisure travel, which can lead to reduced occupancy and lower ADRs. However, strategic pricing and promotions can help maintain a steady stream of guests even during these colder months.

Understanding the cyclical nature of the STR market is essential for cash flow management and revenue maximization.

Different types of properties cater to varying guest preferences and can yield different returns on investment.

• Single-Family Homes: Often preferred by families and groups, they generally have higher occupancy rates and the ability to charge a premium during peak times.
• Condos and Apartments: These can attract business travelers due to their affordability and convenience, especially if located close to business hubs or major events.
• Unique Properties: Properties with unique characteristics, such as historic homes or those with distinctive architectural features, can also draw interest, especially on platforms that emphasize experiential stays.

Each property type brings its unique set of challenges and benefits, and capitalizing on them could lead to optimized performance and overall earnings.

Understanding guest preferences is crucial for success in the Bartlesville STR market. Based on market evaluations:

• Technological Amenities: Offering high-speed internet and smart home devices can significantly boost appeal, especially to business travelers.
• Family-Friendly Options: Properties equipped with kitchens, laundry facilities, and outdoor spaces often see favorable reviews and repeat bookings.
• Local Experiences: Many guests value local experiences and recommendations. Providing curated guides to local attractions can enhance guest satisfaction, leading to positive reviews and return visits.

Investors should focus on striking a balance between essentials and upscale amenities to maximize their property’s desirability.

Navigating the regulatory landscape is critical for STR investments. Bartlesville has a relatively straightforward regulatory framework for short-term rentals, but investors still need to:

• Obtain Necessary Licenses: All short-term rental owners must ensure they have met local licensing requirements.
• Adhere to Health and Safety Regulations: Compliance with safety standards and cleanliness protocols is paramount, especially as the market rebounds post-pandemic.
• Stay Aware of Changes: Regulatory demands can change, so active engagement with local government and participation in real estate associations can be beneficial.

Remaining informed can prevent regulatory issues that could impact rental operations and profitability.

The neighborhood in which an STR is located can significantly influence its performance. In Bartlesville, areas near the city center, local attractions, and business districts show greater demand:

• Downtown Bartlesville: This area is the hub of commercial activity, benefiting from higher foot traffic and business visitors.
• Historic District: Guests often seek a unique experience, making historic neighborhoods particularly appealing. Properties in these areas can charge a premium.

A thorough neighborhood analysis can reveal various factors for success, such as proximity to amenities, schools, and safety ratings, which can all impact the attractiveness of a rental.

Looking forward, several trends appear promising for Bartlesville's STR market:

• Increased Business Travel: As local industries continue to grow, so too will the influx of business travelers. STRs catering to this demographic, such as those with work-friendly amenities, are likely to do well.
• Focus on Sustainability: There's a growing demand for eco-friendly accommodations. Investors may find opportunities in integrating sustainable practices within their properties.
• Marketing: Continued efforts in marketing Bartlesville as a destination can further enhance its appeal. Community efforts to elevate local attractions and experiences will likely contribute to higher visitor numbers.

The overall outlook for Bartlesville’s STR market remains cautiously optimistic, provided investors remain adaptable to changing consumer needs and market dynamics.