Property Feature: Short-Term Rental in Woodfin, NC
Today I am talking about one of my favorite and most successful short-term rental properties and spilling all the tea on the journey to get here, including the challenges and ultimate wins.
I hope it’s insightful and inspiring to see what mechanics make for a successful and consistent business from a short-term rental property.
Every property has its own unique backstory and this one is no different…
The previous owners of this property proved to generate $70K in gross revenue in 2022. After my client’s investment in top notch decor and furnishings, landscaping, and amenities, he anticipates generating about $92K in gross revenue in his first year (excluding cleaning fees) – yielding a 14% cap rate! The new listing was launched in June, taking bookings beginning in July. So far we have over $47K in revenue on the books from July through December with plenty of weekdays still available. I love co-hosting this property and am so excited to see it’s ongoing success come to fruition!
If you are interested in buying an investment property in Asheville or exploring my STR Start-up and co-hosting services I’d love to connect! Use the link below to email me now!
If you are interested in staying at the Woodfin retreat you can book here: https://airbnb.com/h/
If you are interested in sub leasing or SubTo deals, please contact the owner on Instagram @justinpitt96.
Back in the winter of 2022, the current owner of this property was just starting his search to buy a short-term rental investment property. Aside from the usual winter slow season, this time presented to be an especially challenging one in the real estate market due to the rise of interest rates and the drastic decline in available inventory. Prices had not yet stabilized, leaving many buyers feeling unsure about their decision to a buy a house priced too high. My client happened to like a house in the town of Woodfin that had already been operating as a short-term rental (STR). At this time, the town of Woodfin put into effect a new regulation banning any new short-term rentals from starting up. While there are many sides to the controversial issue of STR bans, I saw this as an opportunity for investors! I urged the sellers of this property to go through the proper steps to get their STR permit, which would ensure they could transfer the permit to the new owner. Because of this uncertainty and less than desirable circumstances for an investor, we were able to negotiate a lower purchase price and ultimately close on the property with the permit and at a more comfortable price.
After closing, I activated my STR Consulting service where I coordinated many things that needed to happen to get the house ready, including partnering with a STR Interior Designer and other local vendors. We immediately began procuring furnishings and supplies, coordinating a few updates to the home including a new deck, landscaping, and a hot tub installation. After 3 long months of hard work, we listed what will surely be one of the most beloved and successful short-term rentals in Asheville. As the Co-Host of this property, it has been so rewarding to see the 5 star reviews coming in and we are well on track to surpass the income goals originally expected.
Skyland Haven is the ultimate retreat: Located in Woodfin, conveniently located just a quick 8 minutes from downtown Asheville yet situated on a quiet and peaceful property where you can enjoy the comforts of home and the luxuries of vacation. Equipped with a game room, two living rooms, 3 decks, accommodations to comfortably sleep 12 people, and of course, a hot tub.
The most notable features of this property are the impeccable furnishings and decor.
To make sure he was investing in updates that would result in a good return, this property owner turned to Erin Lenhardt, the Founder & CEO of The Brighthouse, a boutique short term rental management company with homes in North Carolina, Florida, Missouri, and Montana. As part of her short term rental management services, Erin also does STR design and installation.
Erin shares about her role in the project:
“The owner purchased an existing short term rental in Woodfin, just outside of Asheville, NC that was already furnished. The furniture was old and the design uninspired. The owner wanted to replace everything to bring the home up-to-date and to serve a more modern and polished traveler. At the same time, because the home was purchased as an investment, the design needed to drive revenues.
Today’s hosts understand oversaturation of supply; what they’re not talking about is how demand for STRs is also up by 20% in 2023, and that there are plenty of people, in fact, more people than ever, booking short term rentals. The key to winning these bookings is to ensure that travelers will choose your home and not someone else’s. How do you do that? Design.
While the owner initially thought he wanted a “modern” design, we talked about differentiation, and ultimately decided upon a “Japanese bathhouse” theme. The owner already knew he wanted to put in a hot tub and personally enjoyed an Onsen (Japanese bathhouse) experience. This focus gave us an inspired direction for the interior design that would also enable us to curate a clear experience for the home’s visitors. In terms of bringing in the Japanese bathhouse and Japandi themes, we gave a nod to Japanese-inspired prints like cranes on the blackout curtains, bamboo plants throughout, and framed origami art.
Functionality means that beds and couches, the places that people really live, are simultaneously comfortable and durable. We chose high quality couches with darker fabrics that clean easily and won’t show stains. We made the decision to upgrade queen size beds into king size beds where possible, in order to deliver on the promise of functional, comfortable living spaces.
We wanted bedrooms to feel simultaneously cozy and airy. We did that by adding in dramatic, dark paint and floor-to-ceiling blackout curtains in each bedroom, creating both drama and also an ideal sleeping environment for guests. The smaller bedrooms got peel-and-stick wallpaper accent walls and velvet blackout curtains.
The owner was willing to make investments in marquis amenities like a hot tub and firepit; my job, then, was to pull together a Japanese bathhouse themed design without being kitschy. Knowing the owner also appreciated a modern look, and that travel trends indicate that users of short term rentals also enjoy Scandinavian and biophilic (or nature-inspired) designs, we designed the home with Japandi inspiration in mind. (Japandi: Japanese minimalism meets Scandinavian design, with modern flares). “
FUTURE PROJECTIONS:
The previous owners of this property proved to generate $70K in gross revenue in 2022. After my client’s investment in top notch decor and furnishings, landscaping, and amenities, he anticipates generating about $92K in gross revenue in his first year (excluding cleaning fees) – yielding a 14% cap rate! The new listing was launched in June, taking bookings beginning in July. So far we have over $47K in revenue on the books from July through December with plenty of weekdays still available. I love co-hosting this property and am so excited to see it’s ongoing success come to fruition!
If you are interested in buying an investment property in Asheville or exploring my STR Start-up and co-hosting services I’d love to connect! Use the link below to email me now!
If you are interested in staying at the Woodfin retreat you can book here: https://airbnb.com/h/
If you are interested in sub leasing or SubTo deals, please contact the owner on Instagram @justinpitt96.
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