Vermont's vacation rental market is thriving, driven by the state's natural beauty and diverse outdoor activities such as skiing, hiking, and leaf-peeping. The market offers a wide range of properties, from traditional cabins and modern cottages to luxurious mountain-top residences, catering to various types of travelers.
The demand for vacation rentals in Vermont is highly seasonal. Winter (December to early March) is the peak season for snow sports enthusiasts, with properties near renowned ski resorts like Stowe and Killington being highly sought after. The fall foliage season, particularly in October, also sees a surge in demand for cozy accommodations. Summer months, especially August, attract tourists looking for lakefront cottages and outdoor activities.
Starting August 1, 2024, a new 3% surcharge will be added to the cost of short-term rentals in Vermont, in addition to the existing 9% rooms tax and any local option tax. This surcharge will fund the state's Education Fund. Short-term rental operators must collect and remit this surcharge, and those using platforms like Airbnb or Vrbo may have these taxes collected on their behalf.
Key locations for vacation rentals include Stowe, known for its premier skiing facilities, and Killington, which offers high revenue potential for properties close to the slopes. Other areas like Smugglers’ Notch and Dover are also popular for their family-friendly and group-friendly rentals.
The short-term rental market in Vermont has seen significant growth, with over 12,000 STRs operating as of the end of 2023. This growth contributes substantially to the state's tourism economy and has a positive impact on local communities when properly regulated and managed.
Many property owners manage their rentals directly to provide a personal touch, while others use services like Airbnb and Vrbo to enhance visibility. Trends indicate that properties with high cleanliness scores and amenities like keyless technology and instant booking options see higher occupancy rates.
Overall, Vermont's vacation rental market remains robust, with strong seasonal demand and a growing number of properties available. However, operators must navigate new regulatory requirements to ensure compliance and maximize revenue.
