Perkins, Oklahoma

Perkins, Oklahoma, is a small town located in Payne County, known for its close-knit community and proximity to larger cities like Stillwater and Oklahoma City. This town has a population of approximately 2,500 residents, providing a unique environment for short-term rental investments. Its affordability, combined with its location near Oklahoma State University, offers potential for investors looking to tap into both tourist and university-related markets.

The current Average Daily Rate (ADR) for short-term rentals in Perkins stands at $125, a figure that offers insight into the potential income for property owners entering this market. The short-term rental market is influenced by local events, university activities, and the overall economic climate, making it essential to understand various factors affecting performance.

Performance indicators are crucial to evaluate the health and viability of the short-term rental market in a given area. The following KPIs offer a snapshot of the current landscape in Perkins:

• Average Daily Rate (ADR): $125
• Occupancy Rate: The occupancy rate varies seasonally but averages around 55%, suggesting a consistent level of demand.
• Length of Stay: The average length of stay typically hovers around 2.5 days, indicating a mix of weekend visitors and longer-term guests, particularly during university events.
• Revenue per Available Room (RevPAR): Calculated from the ADR and occupancy rate, the RevPAR is approximately $68.75, indicating a moderate income level per available room.
• Market Share: Short-term rentals constitute approximately 10% of the total lodging available in Perkins, a relatively low penetration rate, suggesting room for growth.

These KPIs highlight the current state of Perkins' short-term rental market, painting a picture that suggests potential for both revenue generation and market expansion.

When analyzing the growth trajectory over the last decade, the short-term rental market in Perkins has experienced gradual organic growth. Factors contributing to this growth include:

• Increased Tourism: Perkins has seen a gradual increase in visitors, particularly during the academic year due to university-related events and activities.
• Development of Amenities: Local businesses have seen expansion over the years, enhancing amenities available to both residents and visitors, thus making it more attractive for short-term stays.
• Shift Toward Remote Work/Staycations: The post-pandemic world has brought about a more flexible approach to work and travel, leading to an increase in short-term stays in smaller towns like Perkins.

However, it is important to note that competition has also increased, as other nearby towns have capitalized on the demand for short-term rentals. While Perkins has maintained a balanced growth model, it has to remain vigilant against encroaching competitors.

Perkins offers an attractive investment landscape for potential short-term rental investors, especially when considering the current ADR and local market dynamics. With an ADR of $125 and an occupancy rate of 55%, a property operating 365 days a year could yield an estimated annual revenue of:

• Annual Revenue:
  [
  Revenue = ADR \times Occupancy \times Days = 125 \times 0.55 \times 365 \approx 25,000
  ]

This generates approximately $25,000 in revenue, which must be weighed against operating expenses to calculate the net profit. Typical expenses for short-term rentals include:

• Property Management Fees: 10-20%
• Maintenance & Repairs: Varies widely
• Utilities: Approx. $200-300/month
• Cleaning Fees: $75-150 per turnover

Investors can expect a return on investment (ROI) that can vary depending on the property type, management style, and overall strategy employed. Given the current metrics and potential rental income, many investors may find sufficient reasons to enter this market.

Perkins has distinct seasonal trends that influence short-term rental demand. Seasonal patterns are often tied to academic calendars, holidays, and local events:

• Fall (August to November): This period witnesses an influx of students arriving for the new academic year, resulting in higher occupancy rates from September through November, particularly during home games for Oklahoma State University.
• Winter (December to February): The demand dips during winter months, with lower occupancy rates noted as students return home for the holidays. However, bookings can pick up around special events (e.g., Christmas, the New Year, or winter festivals).
• Spring (March to May): Spring sees a resurgence in occupancy due to university events, graduations, and the local arts festival, typically filling most rental properties.
• Summer (June to August): The summer typically sees a mix of weekend travelers and tourists visiting Perkins for events, leading to moderate occupancy.

Investors should be aware of these seasonal trends and adjust their property management strategies accordingly, particularly marketing efforts and pricing.

The type of property you choose can significantly impact your short-term rental performance. In Perkins, different property types show variable performance metrics:

• Single-Family Homes: Often favored by families visiting the area for events, these properties tend to perform consistently well in terms of occupancy.
• Apartments/Condos: Typically targeted at younger professionals and university visitors, these units may have a lower ADR but enjoy high occupancy during the academic year.
• Cabins or Unique Stays: Standalone unique properties may capitalize on travelers looking for something different, especially during peak seasons.

Understanding the local demand for various property types enables investors to choose the right segment to maximize their returns.

Understanding guest preferences is pivotal in shaping the offering and marketing of short-term rentals. Guests in Perkins tend to favor:

• Proximity to the University: Most guests are looking for rentals that allow them easy access to Oklahoma State University.
• Family-Friendly Amenities: Properties with kitchens, laundry facilities, and outdoor spaces are favored by families visiting for events.
• High-Speed Internet: As remote work has become more common, reliable internet is a strong draw, making it an essential amenity.
• Pet-Friendly Options: Many guests travel with pets and look for rentals that accommodate their furry companions.

Investing in the right amenities can enhance guest experiences, leading to positive reviews and repeat bookings.

The regulatory landscape in Perkins is relatively new concerning short-term rentals. While there are currently no strict zoning laws targeting short-term rental operations, local authorities are becoming increasingly aware of the growing market. Investors should be prepared for potential regulations that may affect short-term rental operations in the future, including:

• Licensing Requirements: Requirements may entail property inspections, permits, or the need to register with local authorities.
• Taxation: Some regions impose taxes on short-term rental income, which could affect profitability.

Investors should regularly check for changes in local regulations to ensure compliance and avoid potential penalties.

Given Perkins' small size, most neighborhoods share similar characteristics but do have unique offerings that may appeal to different types of guests:

• Near Oklahoma State University: Rentals in this area are prime for university-related events and attracts students and their families.
• Residential Areas: These neighborhoods often provide a quieter, suburban feel and are appealing to families or visitors looking for a homey experience.
• Business District: Properties in this area may attract business travelers and professionals looking for convenient access to local businesses and amenities.

Focusing on neighborhood strengths can be a valuable strategy in marketing short-term rental properties.

The outlook for short-term rentals in Perkins appears stable, with several encouraging trends:

• Tourism Growth: Increased promotion of local attractions and events is likely to boost tourism, enhancing short-term rental prospects.
• Development of Infrastructure: Efforts to improve public transport and connectivity could expand accessibility to the town, benefitting the rental market.
• Sustainability Focus: Vacationers are increasingly cautious about their environmental impact, leading to demand for eco-friendly properties. Original features such as solar panels or recycling facilities may further appeal to a specific demographic.

Investors who can adapt to and anticipate these trends may find profitable opportunities for growth in Perkins.