Sand Springs, Oklahoma

Sand Springs, Oklahoma, is situated just west of Tulsa and offers a distinct blend of small-town charm coupled with proximity to urban amenities. The short-term rental market in Sand Springs has been influenced by its position near the Tulsa metropolitan area, which is known for its cultural attractions, outdoor activities, and business environments. This makes Sand Springs a favorable choice for both leisure and business travelers.

As of late 2023, the market has shown signs of resilience, despite broader economic fluctuations. With an average daily rate (ADR) of $197.22 for short-term rentals, there remains a potential for growth in this locality as travel patterns normalize following the COVID-19 pandemic.

To evaluate the current state of the short-term rental market in Sand Springs, several key performance indicators (KPIs) are essential:

• Average Daily Rate (ADR): Currently, the ADR is $197.22. This figure slightly outpaces the national average for similar markets, indicating that Sand Springs is positioned as a desirable location for short-term stays.
• Occupancy Rate: The occupancy rates in Sand Springs hover around 65-75%, aligning with the national averages. However, the demand fluctuates based on yearly events and local tourism initiatives.
• Revenue per Available Room (RevPAR): With the current ADR and occupancy rates, the RevPAR can be calculated. With an occupancy rate of 70%, RevPAR stands at approximately $138.05, reflecting a healthy revenue stream per rental space.
• Supply: The short-term rental supply in Sand Springs is currently around 300 active listings, which is moderate for the region. This supply caters to diverse traveler demographics, including families, business travelers, and outdoor enthusiasts.

These KPIs show a promising environment for current and prospective short-term rental investors.

To understand the growth trajectory of the short-term rental market in Sand Springs, it is essential to examine data over the past decade:

• 2013-2015: The period was characterized by limited inventory and a burgeoning awareness of short-term rentals. Fewer homeowners listed their properties, causing the ADR to hover around $100.
• 2016-2018: The market began to see an increase in both supply and demand, coinciding with the emergence of new attractions, including parks and local festivals. By 2018, the ADR hit $150, with occupancy rates rising due to increased tourist traffic.
• 2019-2020: The short-term rental market peaked prior to the pandemic, showing strong growth patterns with ADR at $180. However, the onset of COVID-19 resulted in volatility, with a significant decline in bookings and sharp dips in occupancy rates as restrictions were put in place.
• 2021-Present: The market has gradually recovered, with ADR rebounding to $197.22 as of late 2023. The recovery has been supported by a shift towards remote working, allowing visitors to extend their stays.

This historical analysis reflects a landscape that has seen gradual but steady growth, despite external challenges, suggesting a resilient market poised for future opportunities.

The investment potential for short-term rentals in Sand Springs can be evaluated through cash flow analysis and return on investment (ROI):

• Property Acquisition Costs: The median home price in Sand Springs is approximately $200,000, which is relatively affordable compared to larger metropolitan areas. This accessibility enhances the appeal for investors entering the short-term rental market.
• Operational Costs: Typical operational costs (management fees, utilities, cleaning services, insurance) can average around 25-30% of revenue. Given the current ADR, investors can anticipate gross revenues of approximately $37,000 annually per property with moderate occupancy.
• Net Yearly Revenue: After accounting for operational costs, annual net revenue might align at around $25,000 per property, leading to a potential ROI of 12.5%, depending on the purchase price and financing arrangements. This figure is competitive for short-term rentals nationwide.

Overall, the metrics favor investment; however, as with any market, investors should conduct detailed due diligence and financial planning.

Understanding seasonal trends is critical for effectively positioning short-term rental offerings:

• Peak Seasons: Summer months (June to August) are particularly attractive in Sand Springs, coinciding with local events, family vacations, and outdoor activities. The ADR often sees an increase during this period, with occupancy rates peaking around 80%.
• Shoulder Seasons: Spring and fall are characterized by moderate traveler interest. Pricing can remain competitive, and investors should adjust their ADR to remain attractive, often falling in the range of $160 to $180 during these times.
• Off-Peak Seasons: Winter months, particularly January and February, see lower demand due to inclement weather and holiday fatigue. Investors may notice occupancy rates dip below 60%, prompting a strategic price reduction or promotion to attract guests.

In recognizing these patterns, property owners can strategically develop marketing plans, optimize pricing structures, and adapt service offerings for year-round profitability.

Different property types yield varying performance metrics in terms of short-term rentals:

• Single-Family Homes: Representing the largest share of rental listings, these properties attract families and larger groups. They report an average occupancy rate of 70%, with higher potential for revenue generation.
• Condos and Townhouses: These types appeal to couples and solo travelers, often achieving higher per-night rates due to their locations and amenities. They typically show an occupancy rate of around 65%.
• Unique Rentals: Such as cabins and tiny homes, resonate well with niche markets like adventure tourists. They often garner strong interest, though their availability is limited.

Understanding the performance of various property types allows investors to tailor their strategies to meet market demand effectively.

In recent years, guest expectations for short-term rentals have evolved. Factors influencing guest decisions include:

• Amenities: Properties providing contemporary amenities such as high-speed internet, well-equipped kitchens, and outdoor spaces report higher booking rates. In particular, features like hot tubs or fire pits have become key decision influencers.
• Location: Guests favor proximity to attractions, parks, and urban experiences. Listings in desirable neighborhoods tend to perform better due to ease of access to local operations and entertainment venues.
• Cleanliness and Safety: Especially after the pandemic, there has been a heightened expectation for cleanliness. Properties that highlight cleaning protocols and provide safe accommodations gain an advantage.

Understanding these guest preferences can immensely benefit property owners aiming to refine their listings for increased appeal.

Understanding local regulations is vital for short-term rental investors:

• Permitting and Licensing: Property owners in Sand Springs are required to obtain specific permits to operate short-term rentals legally. This includes registering the property with the local government and following rules regarding guest safety and health standards.
• Zoning Laws: Investors should be aware of zoning regulations that might limit short-term rentals in specific areas. This can impact the feasibility of operating in certain neighborhoods.
• Local Taxes: Sand Springs has a sales tax that applies to short-term rental transactions, necessitating proper accounting measures by property owners. Failure to comply can result in significant fines.

Investigating the regulatory landscape ensures compliance and promotes sustainable investment in the Sand Springs short-term rental market.

The character of different neighborhoods in Sand Springs can significantly impact rental performance:

• Downtown Sand Springs: The hub of local culture, this area attracts visitors due to its numerous restaurants, shops, and community events. Properties here tend to exhibit higher occupancy rates and rental prices.
• The Riverside Area: Close to the river and associated parks, this neighborhood appeals to outdoor enthusiasts and families. The setting enhances demand for single-family rentals, especially units with outdoor amenities.
• Suburban Areas: Typically home to larger families, suburban settings maintain steady rental performance. Investors can expect consistent occupancy despite market fluctuations.

Conducting a thorough assessment of local neighborhoods enables investors to align their property selections with demand drivers effectively.

As of late 2023, Sand Springs is experiencing a steady outlook in the short-term rental market:

• Increased Investment: The growing acceptance of short-term renting as a viable business model suggests continued investment interest in this region.
• Sustainability Trends: Properties that incorporate eco-friendly practices or local products are becoming increasingly attractive. This trend may provide competitive differentiation and attract a more conscientious traveler base.
• Remote Working: The rise of remote work is likely to impact travel behavior positively, with longer stays becoming more common. This shift can extend peak seasons and demand for short-term rentals.

Looking ahead, Sand Springs is well-positioned to take advantage of these trends as a key player in Oklahoma's short-term rental landscape.