There will always be a demand for Caribbean vacation homes from travelers around the world. This is especially true in the U.S. Virgin Islands (USVI), where tourism has been a predominant component of the economy. In recent years, about 1.2 million cruise passengers and 400,000 airplane passengers have visited the USVI, according to the U.S. Virgin Islands Bureau of Economic Research.
*According to Airbnb, St. Thomas took the sixth spot in bookings this year and last, with year-over-year growth in Airbnb bookings of 338 percent.
This recognition comes just shortly after Airbnb named St. Thomas its top Caribbean destination for 2018, with a 600 percent increase in bookings over the previous year. St. Thomas was also recently a trending location for 2018 New Year’s Eve celebrations by KAYAK, the booking platform travel website.
The U.S. Virgin Islands rental real estate has a high occupancy rate and promising long-term prospects; making now the perfect time to consider owning investment property there. A recent surge in visitors has outpaced hotel capacity on the island and travelers are turning to rental properties as the solution.
The USVI Rental Property Experience
Let’s consider the USVI rental property experience of one of our clients.
Robert and his wife Maridel live in Oregon. In 2018, they purchased their first property near beautiful Sapphire Beach in St. Thomas. The couple had both “business” and “pleasure” goals. They had an interest in purchasing a vacation property that could be rented for a majority of the calendar year, as a way to generate passive income. From their own experiences traveling around the world, Robert’s family realized that vacation rentals in the USVI were in high demand. Once their new property was ready and listed, they began receiving bookings immediately.
According to Robert, “A few months later, Peter Briggs, from JF Real Estate, informed us that the adjacent condo was available at a very attractive price and we quickly purchased it with the same results. We currently live a very long distance away and found that the key to successfully managing the rentals ourselves is to have a great cleaning and maintenance person. We also visit the condos 2-3 times a year to do improvements and make sure that everything is in perfect shape for our guests. We now enjoy a nice cash flow from the rentals and we own a little piece of paradise. We would highly recommend JF Real Estate.”
Thanks to an array of 5-star ratings from renters, their rental income quickly exceeded their expectations. Robert estimates that their vacation properties are now booked at about 75% of the year and that his family’s return on investment was 10.5% in about 18 months. His units are currently booked through May 2020.
JF Real Estate has helped many families just like Robert’s. Our expertise and thorough understanding of the USVI real estate market allows our clients to have their own vacation home while being able to simultaneously generate investment income. Our associates will ensure that you have what you need to make an informed decision on the purchase of your vacation property — no matter how you plan to use it.
As you search for options, there are several important considerations such as:
Maintaining Your USVI Rental Property
Managing a property can be a weekly, if not daily, responsibility. The good news is you don’t have to be the one doing it. Property management firms and experienced managers are available to help throughout the U.S. Virgin Islands. You can also hire your own manager to oversee the property if you’d prefer a more direct relationship. Our experienced associates will assist you in finding the most reliable and trustworthy firms.
Marketing Your USVI Rental Property
Fortunately marketing your property has never been easier. Websites like Airbnb, HomeAway and VBRO allow you to easily set up accounts and begin marketing your vacation property to a global audience. In this social media obsessed world, how your property is rated by renters will go a long way to determining how successful your investment(s) will be. It’s not just first impressions that matter but every impression. The internet has also made payment collection seamless, instant and easy.
There are no limits to the income you could make – and the fun you’ll have – owning one or more vacation properties in the USVI. Contact us to learn how earning that extra income can help you make your life a Caribbean breeze.
*source Real Nice, Your source of news from the U.S. Virgin Islands
Start looking for your next investment for U S Virgin Islands properties with our talented agents.