SHERIDAN — Whether a traveler or a property owner, chances are you’ve heard of the short-term vacation rental.
“In June 2021, statewide there was an 11% increase in the number of available listings compared to the prior June, and an occupancy rate of 71%,” Piper Singer, public relations and media manager for the Wyoming Office of Tourism said.
Statistics show longer stays in larger units and properties were growing in popularity even before the pandemic hit. But overall, short-term rentals still only make up an estimated 4% of Wyoming’s tracked accommodation inventory. Hotels make up the remainder, according to Singer.
There are 97 active short-term vacation rentals in the Sheridan area, and they are rented at the average daily rate of $136, according to AirDNA, which collects data on vacation rentals nationwide.
The average annual occupancy rate is 67%. In July, those rentals are occupied at 90% and in February, 39%. Only a quarter are listed on VRBO, and 65% are listed on Airbnb. Rental growth has experienced a 38% quarterly growth since 2018, according to AirDNA.
In comparison, rental growth has stagnated in Denver, with 0% quarterly growth since 2018. The market may be saturated with 3,922 active rentals, although the annual occupancy rate is 81%. Similar to Sheridan, the average daily rate is $148.
As far as how these properties impact the local economy, guests who book Airbnb listings that are located in Wyoming are required to pay certain taxes. Those include the 4% Wyoming sales tax, a 5% Wyoming lodging tax, local sales taxes that vary by county and any local lodging taxes. However, some say companies like Airbnb can increase the cost of living and reduce the quality of life for existing residents by turning residential areas into de-facto hotels. Many communities restrict stays: Some states cap overnight rentals to 28 days if the property owner does not live in the home themselves. But regulations are not always the answer either, others say.
Enter the local manager, which, in Sheridan, is Concept BNB — Stays & Management, established in early 2020.
“Just over a year ago, we started a new brokerage,” said Dalton Goodyear of Concept BNB, and also Concept Z Home and Property. “When I got licensed as a real estate agent, my background was with vacation rentals, AirBNB-type properties. I saw the industry going that direction, saw that it was picking up and wanted to find a way to bring value to local homeowners.”
Building up one property at a time, Concept BNB now has properties in Dayton, Big Horn, Story and throughout Sheridan.
“There has definitely been an increase in demand,” Goodyear said. “Sheridan’s market really does intrigue me … there has been a spike, but I see it in waves. Sometimes it trends down, because it is a lot of work.”
Managing a short-term rental takes time, and most Concept BNB owners began as …….