The Short-Term Rental Market in Bozeman

by Liz Nitz
The Short Term Rental Market in Bozeman

Sobo Lofts in downtown Bozeman. The HOA allows for short-term vacation rentals.

 

Interior of my short-term rental in Sobo Lofts

Interior of my short-term rental in Sobo Lofts

The short-term rental market in Bozeman is strong thanks to the mountain setting, college town designation and year-round recreation.

That’s if you can find one. It’s no secret that the Bozeman real estate market is tight right now, with almost no inventory. And with the city’s new zoning map and recently established regulations on short-term rentals, it’s a bit difficult to own and operate one. (You can find information on the city’s rules on short-term rentals here.) I own a short-term vacation Rental Market here in Bozeman and its performance is better than I had anticipated.

 

Bozeman Compared to More Traditional Resort Destinations

  • My Hawaii rental: I previously owned a short-term vacation rental in Hawaii and it was a much different picture. Cancellations/changes were rare because it took a fair amount of effort to get to Hawaii. Many people were going with family, so guests tended to make air and lodging reservations at the same time and often a year in advance.
  • My Bozeman rental: Reservations here are a little more fluid. There are more cancellations/changes but they almost always fill right back up. In the past few months (before we had any decent snow) I’ve only had five total nights that were open. I am currently looking at several months of being totally booked. Bozeman is a great place to own a short-term rental because of its multilayered economy. Even if the national economy were to take more of a hit than it did last year, Bozeman has a lot to offer in terms of recreation and entertainment at a pretty reasonable price. And unlike Hawaii, Bozeman is reachable by car which ups the affordability factor for visitors.

 

Who Is Staying in Short-term Rentals in Bozeman?

Bozeman is a popular vacation base for skiing, hiking and exploring national parks. It also attracts many people visiting Montana State University. Surprisingly, Bozeman became even more popular during the pandemic. Montana had more space and less restrictions compared to other states, so people headed here in droves to live, work and play.

 

What’s Happening in Surrounding Cities?

    • Big Sky Big Sky doesn’t have the same zoning issues because it’s a resort town. But individual HOAs may have their own restrictions. The real issue in Big Sky would be: Is it worth the investment? One should check carefully what units can rent for and compare that to expenses. HOA expenses in Big Sky tend to be much more than Bozeman. And while Bozeman rents year-round, Big Sky definitely has an off-season during the fall and spring.
    • Belgrade This could potentially be a market to look at if the HOAs allow for short-term rentals. The key would be to get a unit that has amenities that Bozeman can’t offer, such as more space with a big yard for pets. There are not a lot of Airbnbs over there, so you would definitely be taking a few guesses. But the  rental market is strong, so a long-term rental should cover expenses if the short-term didn’t work out.

 

Amenities Make a Difference

A good resource if you’re interested in investing in a short-term rental is AirDNA. If you’re an analytics geek, AirDNA has a goldmine of data on the performance of VRBOs and Airbnbs located all over the world. Check out this great blog post about amenities that boost average daily rates (ADR) and revenue per available rental (RevPar). In Montana, I think these amenities would set you apart:

    • Winter season Fireplace; sun-drenched living area with great views; heated floors; hot tub; glove/boot warmers; espresso/coffee station.
    • Summer season Walking distance to the main entertainment district; a patio with views of the lake/mountains; bikes for riding around town.

 

If you have questions about owning a short-term rental or what’s happening in real estate in Bozeman, feel free to email me at liz@windermere.com. Also check out my previous blog post about what you should consider before owning a vacation rental.

Share

No Comments

Post A Comment

New Real Estate Trends in Bozeman

New Real Estate Trends in Bozeman

The pandemic and remote work are resulting in new real estate trends. We saw a big influx of out-of-town buyers in 2020 that was mainly fueled by the pandemic. I think what is driving home-buying decisions is interesting and we are seeing some new real estate trends

Read More →
What to Expect in Bozeman Real Estate in 2021

What to Expect in Bozeman Real Estate in 2021

Bozeman real estate in 2021 is currently in a seller’s market. From 2019 to 2020, the median sales price increased from *$399,900 to $420,000 and inventory dipped to 0.4 months supply. My prediction is that it’s not going to get any better or less competitive

Read More →
New on the MLS

Latest Listings

The following homes listed below were just listed in the last 7 days. This seller’s market is hot so we keep a close eye on the latest inventory. Subscribe below for instant updates of your ideal criteria.

Sort Option
  • Listing ID
  • Built up Area
  • Price
  • Pictures
  • Add date
  • Featured
Grid
List
Map
RSS

4633 Shadowglen, Bozeman, Montana 59718

4633 Shadowglen, Bozeman, Montana 59718

4Bedroom(s)
3Bathroom(s)
0.17Acre
2,617Sqft
Four bedroom single family home on Bozeman's growing west side. Two stories with a main floor master bedroom. Generous amount of counterspace and storage in the kitchen, gas fireplace in the living room and formal dining room. Upstairs features two bedrooms, bathroom and loft/flex space currently used as an office.
$769,900

203 Wickwire Way, Bozeman, Montana 59718

203 Wickwire Way, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.20Acre
2,067Sqft
Beautiful new construction available for immediate occupancy in Black Bull, just in time for golf season. Located steps from the club's amenities, 203 Wickwire Way provides easy single level living in one of Bozeman's most sought after communities. With 3 bedrooms, 2.
$1,499,000

2489 Andalusian Avenue, Bozeman, Montana 59718

2489 Andalusian Avenue, Bozeman, Montana 59718

4Bedroom(s)
2Bathroom(s)
0.28Acre
2,770Sqft
Welcome to 2489 Andalusian Ave in the highly sought after Baxter Meadows West Subdivision! This custom home is one of last crafted by renown Bozeman Developer Ed Adamson & Bozeman Building Traditions. This unique green and energy efficient home features two types of solar panels, complete with high efficiency Smart Triangle Tube Boiler System and radiant floor heating.
$1,399,900

29 Hoffman Drive, Bozeman, Montana 59715

29 Hoffman Drive, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.07Acre
2,568Sqft
Spacious 4 bedroom, 3 bathroom Woodbrook townhome by renowned builder Ken Leclair in an unbeatable location near MSU, Downtown, and Bozeman Health. Enjoy the park-like setting backing to beautiful mature trees and babbling brook from the expansive newly built Trex deck. Main floor open living with vaulted ceilings and massive windows providing tons of natural light.
$749,900

340 Stonegate Drive, Bozeman, Montana 59715

340 Stonegate Drive, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.96Acre
3,093Sqft
Brand new to market! Welcome to serene Stonegate subdivision tucked into Bozeman's Riverside Golf Course with spacious 1+/- acre lots & stunning mountain views. Abundant windows & natural light envelop elegant 3093 sq ft home with 4 beds & 3 1/2 baths. Main level master en suite boasts a ginormous walk-in closet/dressing room.
$1,500,000

3109 Augusta Drive, Bozeman, Montana 59715

3109 Augusta Drive, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.29Acre
3,005Sqft
Beautiful home on the 14th fairway of the Bridger Creek Golf Course. "Big" unobstructed views of the Bridger Mountain Range. This home features 2 master suites, one with a walk-in closet big enough to make into another bedroom! Great room concept with corner river rock gas fireplace, large kitchen featuring cherry cabinetry, granite counters, butcher block island and a nice gas range.
$1,050,000

1418 Cherry Drive, Bozeman, Montana 59715

1418 Cherry Drive, Bozeman, Montana 59715

3Bedroom(s)
2Bathroom(s)
0.21Acre
2,523Sqft
This well maintained ranch style home backing to the Hyalite View Park is ideally located within close proximity to downtown Bozeman, Bozeman Deaconess Hospital, and Montana State University. The trail system runs right past the back door for hiking and biking opportunities as well. The two levels of this home afford separate bedroom/living areas for guests or roommates .
$825,000

280 Eagle Creek, Bozeman, Montana 59718

280 Eagle Creek, Bozeman, Montana 59718

3Bedroom(s)
1Bathroom(s)
2,182Sqft
This spacious 2-level Cottonwood Condo is ideally situated in the ever-growing West-End of Bozeman. Within walking distance to restaurants, coffee shops, trails, and workout facilities. Natural light floods the main level with an open concept floorplan with warm, oak flooring throughout the ENTIRE condo (helpful for those with allergies).
$720,000

315 N Tracy Avenue 508, Bozeman, Montana 59715

315 N Tracy Avenue 508, Bozeman, Montana 59715

2Bedroom(s)
1,418Sqft
The Henry is a proposed 6-story, luxury residential for sale development in the heart of downtown Bozeman, Montana. Totaling 44 condominiums, the project is 3 blocks from Main Street at the southwest corner of Tracy Avenue and Villard Street. The Henry is positioned to be the most sought-after residential property in Bozeman, given its location, amenities, design and views.
$1,554,000
52 Results returned.Per Page