Finding and then starting a successful short-term rental (STR) in the Poconos involves careful planning and execution. Poconos is a nice vacation spot, conveniently located in a mountain market, three hours away from 47 million people. Poconos has year-round attractions, it a great last-minute option for those that want to get away for a weekend or longer. Our market has some unique features, like local regulations, seasonality and proximity to certain amenities, but across the region, the fundamentals are the same.
Over 30 million people visit the Poconos each year. Hotels and resorts draw about half of the overnight paying customers, vacation rentals house the other half. Many more people stay, but don’t pay in vacation homes. There are many more vacation homes that don’t have licenses than there are licensed short-term rentals in the Poconos. There are approximately 11,000 hotel rooms in the region, there are 6,500 licensed short-term rentals.
Today, the vacation rental market is very competitive. Finding a successful short-term rental (STR) property in the Poconos requires strategic research and analysis to ensure profitability. Here are eight steps to guide your search:
1. Identify High-Demand Desirable Locations
The Pocono Mountains is region in northeastern Pennsylvania tucked in a corner of the state with New York State to the north, New Jersey to the east, Scranton, Wilkes-Barre, Hazleton to the west and the Lehigh valley to the South. It includes all of Monroe, Carbon Pike and Wayne Counties, Monroe being the largest by far. Start your search with a focus on areas popular with tourists, such as those near ski resorts, lakes, hiking trails, or major attractions like Camelback Resort, the Delaware River, the Lehigh River, Lake Wallenpaupack. Research neighborhoods and communities with high occupancy rates for STRs and try to understand why this is so.
2. Focus on Sub-market
The Pocono Mountains is region in northeastern Pennsylvania tucked in a corner of the state with New York State to the north, New Jersey to the east, Scranton, Wilkes-Barre and Hazelton to the west and the Lehigh valley to the South. It includes all of Monroe, Carbon Pike and Wayne Counties, Monroe being the largest by far. Here are some Pocono Mountain Sub-markets to consider:
3. Check Local Regulations and Community Rules
In Pennsylvania, Short-Term Rentals are regulated by municipalities (townships, boroughs or cities). Confirm that STRs are allowed in the area or municipality you’re considering. These are often not featured in real estate listings, but this is where the rules come from. Try typing in township names in Google Maps, like: Coolbaugh Township, Tobyhanna Township, Middle Smithfield Township, Kidder Township to see how the township borders overlap your view of sub-market.
Research municipal zoning laws and township requirements to ensure STRs are permitted, what restrictions exist. Understand the rules around occupancy, including septic systems and how that relates to STR. Understand the necessary permits and licenses, such as a short-term rental license, state sales tax license and county hotel tax registration. Familiarize yourself with HOA or community-specific rules, as many planned communities have unique restrictions, permit requirements on rentals and guest registrations.
Review HOA rules or community declarations to ensure the property is eligible for rental use. Some planned communities have strict STR restrictions. HOAs have pros and cons and understanding these can help you later develop a successful marketing plan.
Join Poconos VRO, the local trade association representing STR owners in the region. Your membership in VRO will help you gain insight from a community of owners, operators and vendors and access member-only information and discounts.
4. Evaluate Market Trends and Competition
Analyze existing STR listings in the area using platforms like Airbnb or VRBO.
Look for trends in nightly rates, occupancy levels, and amenities offered by successful properties. Understand seasonal demand in the Poconos to gauge year-round potential.
Join Facebook Groups and social media networks that discuss issues surrounding vacation rentals and Short-term rentals. Remember, those that are active in these groups may be doing so for personal gain, so participate and take what you read and learn as an opinion, not necessarily fact. Opinions are helpful in guiding, but not in directing your decisions.
Further your search regarding HOA versus no HOA understanding that 90% of the rentable homes are in HOAs. Consider Gated or non-gated communities. There are pros and cons for each and think of this also in the guest’s perspective for marketing, not just daily operations. Factor in the impact of size of the home, number of bedrooms and property amenities. Look deeply into AirBnB and VRBO listings and read guest reviews to better understand the area.
Look for properties in high-demand areas, such as near lakes, ski resorts, or hiking trails or one that fits your personal dreams, remember you may someday want to live here! Verify if the community allows STRs and whether the property has the potential to attract guests (e.g., size, amenities, and location). Consider properties with appealing features like decks, hot tubs, fireplaces, and spacious interiors.
5. Define Your Budget and Financing Options
Establish a budget that includes property acquisition, renovations, furnishings, and closing costs. Consider financing options such as conventional loans, DSCR loans, or investment partnerships. Calculate potential ROI based on average nightly rates, occupancy rates, and operating costs using third party tools and industry averages. Remember, active STR properties with good rental histories and very strong AirBnB and/or VRBO listings will sell at a premium, often above appraisal prices. Traditional real estate appraisals often do not factor in rental income opportunity, that is a different process.
6. Focus on Property Features and Amenities
Use the local MLS or similar real estate websites. Your realtor may be able to help you with a subscription. Look for homes with features that attract guests, such as:
Think about whether you want to Build or Buy, putting money into a property after you purchase it or having it done before by the previous owner. Also think about the need to do this right away or waiting until a future off-season.
7. Conduct a Financial Analysis
Estimate potential income by comparing similar STR listings in the area. Factor in expenses like mortgage payments, taxes, HOA fees, maintenance, utilities, and cleaning services. Use STR tools like AirDNA or BnBCalc to project revenue and identify top-performing areas as well as to try specific properties or pick experts like STRSearch or STRInsights. Assess pricing, occupancy rates, and peak seasons to gauge potential profitability in your sub-market, realizing the Poconos is a very big area and there are differences in each sub-market Understand that proximity to winter sports will drive occupancy but evaluate the premium that has on home prices. Identify unique selling points for your property to stand out in the market. Also consider backup plans, like mid-term rental, long-term rental or fix and flip.
8. Work with a Local Real Estate Expert to get the deal done
Partner with a real estate agent experienced in STR properties in the Poconos, or with experience in your identified target neighborhoods. They can provide insights on the best neighborhoods, negotiate deals, and help you navigate zoning and community regulations. They may also have access to additional insight on trends, home prices and other factors that may impact your decision. Due to the wide range of sub-markets, it may be helpful to start working with a realtor earlier in the process. Find someone who you can trust and who you feel can give you the advice and support you need. Nobody is an expert with everything, so find someone that you feel will work for you and work well with you.
The post Steps to Finding a Successful Short-Term Rental in the Poconos appeared first on Pocono Vacation Home Sales & Short-term Rental.
July 03, 2023
Some communities are more friendly to VRBO and Airbnb, others oppose the practice. Here is an summary drawn from various HOAs (Home Owner Associations) and township regulations. Last Updated: January, 2025 ARROWHEAD LAKE (Coolbaugh Township and Tobyhanna Township, PA) As one of the area’s most recognized vacation home communities, Arrowhead Lake has a rich traditionContinue reading "Short-term Rental Friendly Pocono Communities"
The post Short-term Rental Friendly Pocono Communities appeared first on Pocono Vacation Home Sales & Short-term Rental.
March 01, 2022
Zoning, Rules and Regulations regarding Short-term Rentals, VRBO and AirBnB are changing in the Poconos, here is a scorecard of municipalities and what they say about running a short-term rental from your vacation home or income property.
The post STR Municipal Scorecard: Rules on Short-term Rentals in Boroughs and Townships in Poconos appeared first on Pocono Vacation Home Sales & Short-term Rental.