Are you considering buying a short-term rental property in Vermont? With its year-round appeal, stunning natural landscapes, and thriving tourism industry, Vermont is an excellent place to invest. But not all locations are created equal. Let’s explore some of the best spots in the Green Mountain State for maximizing your short-term rental income.
1. Stowe: A Year-Round Destination
Stowe consistently ranks as one of Vermont’s top destinations for visitors. Known for its world-class skiing in the winter and picturesque hiking and biking trails in the summer, Stowe offers strong year-round rental demand.
Why Stowe?
- Winter Sports: Home to Stowe Mountain Resort, the area attracts skiers and snowboarders from across the country.
- Summer Activities: Mountain biking, hiking, and scenic gondola rides bring in visitors during warmer months.
- Upscale Market: Stowe’s reputation for luxury means you can charge premium rates for well-appointed properties.
Pro Tip: Look for properties close to the ski slopes or downtown Stowe to attract high-paying guests.
Local Regulations: Stowe requires short-term rental owners to register their properties annually with the town. Compliance with local zoning regulations is essential, as some residential areas may have restrictions on STR operations. Additionally, owners must collect and remit Vermont’s Meals and Rooms Tax and adhere to occupancy limits based on property size and zoning. Quiet hours or noise policies may also be required to minimize disturbances for neighbors.
2. Burlington: Urban Vibes with Lake Champlain Views
Burlington is Vermont’s largest city and a hub for culture, food, and outdoor activities. Its urban appeal combined with access to Lake Champlain makes it a versatile location for short-term rental investors.
Why Burlington?
- Year-Round Demand: Tourists flock here for festivals, concerts, and lake activities in the summer and fall.
- College and Business Visitors: Home to the University of Vermont and Champlain College, the city draws academic and business travelers.
- Walkability: Downtown Burlington’s Church Street Marketplace is a huge draw for guests who love shops, restaurants, and nightlife.
Pro Tip: Smaller properties, like condos, often perform well here due to demand from solo travelers and couples.
Local Regulations: Burlington has specific zoning laws that limit short-term rentals in certain residential areas. Property owners must comply with these zoning rules to operate legally. Additionally, Burlington STR operators must collect Vermont’s Meals and Rooms Tax and ensure that their properties meet health and safety standards. It’s essential to verify whether your intended property is in a zone that permits short-term rentals before making a purchase.
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3. Woodstock: A Historic Gem
If charm and character are your focus, Woodstock offers a quintessential Vermont experience. This small town is famous for its historic architecture and proximity to outdoor activities.
Why Woodstock?
- Seasonal Appeal: Foliage season in the fall and cozy winter stays make this area highly desirable.
- Cultural Attractions: Billings Farm & Museum and nearby Quechee Gorge add to the tourist appeal.
- Boutique Traveler Appeal: Woodstock attracts guests looking for a unique and upscale experience, perfect for boutique rental properties.
Pro Tip: Ensure your property meets local regulations, such as zoning and registration requirements, to avoid legal issues. Properties with historic or unique designs tend to stand out in this market.
Local Regulations: Woodstock requires short-term rental owners to register their properties annually with the town. Zoning restrictions may limit where short-term rentals can operate, particularly in residential districts. Additionally, STR operators must comply with health and safety standards and collect Vermont’s Meals and Rooms Tax. Occupancy limits may apply depending on the property type and location.
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4. Killington: The Ski Capital of the East
For winter sports enthusiasts, Killington is a no-brainer. With the largest ski resort in the eastern United States, this area draws huge crowds during ski season.
Why Killington?
- Ski Season Dominance: The Killington Ski Resort and its “Beast of the East” reputation bring consistent winter bookings.
- Event Hosting: The area also sees year-round traffic for music festivals, Spartan races, and mountain biking events.
- Group Travelers: Larger properties do well here, as many visitors come in groups for ski trips or outdoor adventures.
Pro Tip: Invest in properties with amenities like hot tubs or fireplaces to cater to winter vacationers.
Local Regulations: Killington requires short-term rental properties to comply with local zoning and registration requirements. The town may restrict STR operations in certain residential areas to preserve neighborhood character. Additionally, property owners must collect and remit Vermont’s Meals and Rooms Tax and adhere to health and safety standards. Ensuring compliance with occupancy limits and addressing noise or parking concerns will help avoid conflicts with local residents.
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5. Lake Willoughby and the Northeast Kingdom: Vermont’s Hidden Treasure
For those seeking an off-the-beaten-path location, the Northeast Kingdom offers natural beauty and tranquility. Lake Willoughby is a centerpiece of this region and a magnet for nature lovers.
Why the Northeast Kingdom?
- Outdoor Recreation: Fishing, kayaking, hiking, and snowmobiling make this area appealing to active travelers.
- Affordable Entry Point: Property prices here are often lower than in more tourist-heavy areas.
- Secluded Stays: Guests seeking privacy and a true escape from city life love this region.
Pro Tip: Highlight the area’s peaceful setting and outdoor opportunities in your rental listing to attract eco-conscious travelers.
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What to Consider When Choosing a Vermont Location
Before purchasing a short-term rental property, ask yourself these key questions:
1. Who Is Your Target Audience? Are you catering to skiers, city visitors, or families looking for a lakeside retreat?
2. What Amenities Are Essential? Features like fireplaces, hot tubs, and lake access can make your property more competitive.
3. Are There Local Regulations? Some towns have strict rules about short-term rentals, including registration fees, zoning restrictions, and occupancy limits. For example, Woodstock requires annual registration and adherence to local ordinances, Stowe enforces zoning compliance, occupancy limits, and tax remittance, and Burlington imposes zoning restrictions and health and safety standards. Killington also has zoning and registration requirements designed to maintain community balance.
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Maximize Your Investment with Local Expertise
Investing in a Vermont short-term rental property can be a lucrative venture if you choose the right location. As a local real estate agent with expertise in Vermont’s market, I’m here to help you find the perfect property to meet your goals.
Ready to Start Your Search? Contact me today to discuss how you can build wealth through real estate in Vermont!
