Wondering how the short-term rental market in Maine real estate is doing in 2018?
Whether investing in traditional or Airbnb rentals, successful property investors know the importance of investing in the right location. Airbnb has been growing in popularity over the last few years, and finding an investment property in the right location has become an even more crucial factor for successful real estate investing. For that reason, real estate investors planning on renting out on Airbnb are on the hunt for the best places to buy a short-term rental property. If this is the case for you, we recommend investing in Airbnb rentals in Maine real estate!
The Rise of Short-Term Rentals in Maine Real Estate
Based on new data from Airbnb, the number of Airbnb listings in the Maine real estate market has increased this past summer. About 5,000 Airbnb hosts in Maine had guests in their rental properties, and the state had welcomed nearly 229,000 Airbnb guests (which is an increase of about 71,000 compared to summer 2017). The company further reported that the typical Maine Airbnb host earned $4,800 in rental income this summer. Even more exciting news on Airbnb Maine real estate is that the state had made nearly $40 million in the past three months by Mainers renting out properties on Airbnb!
Wondering what had caused this jump? Maine has always been a popular vacation destination. Locals have been renting out vacation rental properties for years. What’s different now is that they are now marketing their properties through the online platform rather than running an ad in the local newspaper or through a rental agency. For Maine real estate investors, Airbnb is like a portal to a huge pool of future guests. The trend of listing vacation rental properties on Airbnb and the attractive rental income these investment properties generate caused property investors to alternate their rental strategy from long-term (traditional) to short-term.
Interested in Buying Maine Real Estate?
If yes, we can help you find the best rental property to buy! With our investment property calculator, real estate investors find, analyze, and compare investment properties in their area of choice to identify the optimal one to invest in and start making money in real estate. This investment tool uses traditional as well as predictive data analytics to help property investors make smart investment decisions.
Sign up for our services to start your search for the best property in Maine real estate to invest in as a short-term rental. To learn more about how our product works, read this: Investment Property Calculator for Analyzing Real Estate Investments.
Maine Airbnb Laws and Regulation
Before you go ahead and buy an investment property in Maine real estate to rent on Airbnb, one thing you must check is the laws and regulations regarding short-term rentals in the city or town where you want to invest. Although many property investors believe that short-term rentals are something that Maine will thrive on, the rise of Airbnb has been met with a backlash in some communities. Some are blaming Airbnb for disrupting neighborhoods, taking up workforce housing, and stripping the supply of long-term rental properties.
Moreover, many Maine communities grapple with how to regulate short-term rentals like Airbnb. Portland, for example, has proposed increasing registration fees for short-term renal hosts. The South Portland City Council had also passed a law banning short-term rentals in non-owner-occupied homes in residential units. Other nearby communities are also considering ordinances that would add restrictions on residents looking to rent out their properties for the short-term.
In order to avoid any legal issues, we recommend anyone interested in investing in Airbnb Maine real estate to keep an eye out for such laws and regulations before making an investment decision. Of course, there still are communities in Maine which welcome Airbnb hosts and provide profitable investment opportunities. These are the ones you should be investing in!
The Best Places to Invest in Airbnb Main Real Estate
Based on data analytics from Mashvisor’s investment property calculator, the following are the best cities and towns in the Maine real estate market for Airbnb hosts. Investment properties in these places generate an attractive Airbnb rental income and cash on cash return.
- Median Property Price: $263,321
- Price Per Square Foot: $182.83
- Airbnb Rental Income: $6,092
- Occupancy Rate: 68.36%
- Cash on Cash Return: 12.34%
- Median Property Price: $179,160
- Price Per Square Foot: $115.40
- Airbnb Rental Income: $2,373
- Occupancy Rate: 49.63%
- Cash on Cash Return: 8.43%
- Median Property Price: $316,013
- Price Per Square Foot: $203.39
- Airbnb Rental Income: $3,908
- Occupancy Rate: 65.44%
- Cash on Cash Return: 7.97%
- Median Property Price: $192,371
- Price Per Square Foot: $114.28
- Airbnb Rental Income: $2,547
- Occupancy Rate: 51.79%
- Cash on Cash Return: 7.44%
- Median Property Price: $406,030
- Price Per Square Foot: $222.17
- Airbnb Rental Income: $4,355
- Occupancy Rate: 59.04%
- Cash on Cash Return: 6.96%
- Median Property Price: $385,573
- Price Per Square Foot: $185.26
- Airbnb Rental Income: $4,141
- Occupancy Rate: 55.48%
- Cash on Cash Return: 6.75%
- Median Property Price: $205,774
- Price Per Square Foot: $119.71
- Airbnb Rental Income: $2,573
- Occupancy Rate: 58.45%
- Cash on Cash Return: 6.33%
- Median Property Price: $379,886
- Price Per Square Foot: $170.00
- Airbnb Rental Income: $3,243
- Occupancy Rate: 42.9%
- Cash on Cash Return: 6.33%
- Median Property Price: $297,809
- Price Per Square Foot: $149.51
- Airbnb Rental Income: $3,420
- Occupancy Rate: 62.88%
- Cash on Cash Return: 6.23%
- Median Property Price: $455,180
- Price Per Square Foot: $375.04
- Airbnb Rental Income: $3,383
- Occupancy Rate: 44.13%
- Cash on Cash Return: 6.17%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
The Bottom Line
If you’re an owner of a vacation rental in Maine real estate, we highly recommend listing it on Airbnb as hosts have made hefty profits from the short-term rental website this summer. Correspondingly, if you’re searching for a location to buy a short-term investment property, consider the above cities/towns in Maine. Don’t forget to use our investment tools as you’re conducting your property search! To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
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