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What to Watch Out for When Looking for Your Next Lake Tahoe Rental

Christy Morrison

MEET YOUR TAHOE TRUCKEE REAL ESTATE EXPERT Specialties: Listing Agent, Consulting, Negotiation, and Staging  Christy Morrison, a Truckee/North Ta...

MEET YOUR TAHOE TRUCKEE REAL ESTATE EXPERT Specialties: Listing Agent, Consulting, Negotiation, and Staging  Christy Morrison, a Truckee/North Ta...

Jul 26 6 minutes read

This week brought some big news about vacation rentals in the Tahoe Truckee area. While there's currently a 45-day moratorium on new vacation rental permits for Placer County, there is still opportunity here in Nevada County. Despite a minor blip at the start of the pandemic, the Lake Tahoe rental market is still as hot as the sun that shines on its crystal-clear blue waters. What's driving the heat? Tourists are returning to the lake, and Bay Area professionals are relocating to the region to work from home. That means lucrative new rental opportunities for homeowners like you.  

There's never been a better time to grow your property portfolio than right now. After the Federal Reserve slashed interest rates, cheap home loans make it more affordable to invest in Lake Tahoe rental homes, and with no sign of a property crash soon, expect a sizeable investment return in years to come. Here are some tips for your next rental investment from a local real estate professional.

1. Choose the Perfect Neighborhood

If you're selling your Lake Tahoe rental to make a profit, look no further than Truckee for some of the greatest investment opportunities. Here you can purchase a luxury home in a friendly community that attracts families and young professionals from across California and beyond. Although neighborhoods like North Lake Tahoe, the West Shore, and Tahoe City have traditionally been the most sought-after areas in this region, Truckee is experiencing something of a resurgence, with an incredible range of new properties for investors with homes to sell. Truckee properties may be considerably less expensive than those in other areas, but expect this to change in the next few years because of the current housing "boom." For many investors, it's now or never.

Purchasing a rental property elsewhere in the region could also provide a significant long-term investment. Other local communities experiencing unparalleled interest from buyers include:

2. Expect a Sizable Rental Income

Many Lake Tahoe property owners experienced a dip in rental income last year because of the pandemic. Stay-at-home orders and social distancing interrupted the regular trickle of tourists that visit this area, prompting some homeowners to sell and invest elsewhere. If last year's drought of visitors influenced your decision to sell your home, there's some good news on the horizon. 

As the country slowly returns to normal, local live events are back, and tourists are visiting Lake Tahoe again. And all those tourists need somewhere to stay! Investing in a new rental property now makes financial sense, as Lake Tahoe welcomes guests with open arms after a difficult 16 months or so. There's more good news. With many international travel restrictions still in place, more Americans are looking for short- and long-term lets closer to home, including right here in Lake Tahoe, providing you with ample opportunities to generate rental income. 

So how much can you expect to make in rent from Lake Tahoe rentals in 2022 and beyond? The average one-bedroom home brings in around $2,800 a month in Truckee, while a three-bedroom generates $3,500 a month — that's a 40% increase from this time last year. For short-term vacation lets, expect almost anything from $100 a night upward, with the sky the limit on websites like Airbnb

3. Work with a Local Professional

With the current housing boom across the Lake Tahoe area, it's no wonder out-of-towners are trying to capitalize on this region's success. So-called real estate "professionals" from the Bay, Los Angeles, and other metropolitan areas are muscling in on the market. Still, only local professionals with years of experience truly understand Tahoe rentals. 

That's why you should work with a local agent like Christy Morrison, who knows Lake Tahoe like the back of her hand. With years of real estate experience, she can sell your home, help you buy a new rental property in the area, and grow your investment portfolio. Larger real estate companies from outside the region just don't have her local expertise. 

Before You Sell Your Lake Tahoe Home

If you want to sell your Lake Tahoe rental and invest in a brand-new one, there's never been a better time to do it. The local market is red hot, and communities like Truckee are experiencing incredible growth. It might tempt you to use a large real estate company that's capitalizing on the Lake Tahoe property boom, but working with a local professional makes more financial sense. Christy and her team can find you the best Lake Tahoe rental homes based on your budget and requirements, setting you up for future investment success. 

Whether you're in Lake Tahoe to vacation or you've found a place to call home, Christy welcomes you to Truckee and the Lake Tahoe region. Christy lives here too and wouldn't live anywhere else in the world! When you're ready to buy or sell a property, schedule a call.

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