Building a vacation rental property in a popular tourist location and renting it out by the night is an increasingly popular way to get a rest house away from home while also making money all year. As more and more people dream of a rest house outside their city, they are yet unaware of the potential shipping container homes hold as an income-generating asset.
There are many factors to consider when it comes to return of investment (ROI) for recycled shipping container homes. The cost of building materials and labor, the market value of the home, and the location of the home all play a role in ROI. However, container homes are often able to offer a higher ROI than traditional stick-built homes.
Calculating the Numbers
How much money can you make renting an eco friendly container house? According to a study by short-term rental platform HomeAway, the average owner who rents out a second property earns more than $33,000 in yearly rental income. A single room or part of a home on Airbnb costs around $11,000 per year.
“I think vacation rentals are a good investment with the state of the housing market where it is now,” says Nick Winikoff, one of Vuepeer’s co-founders. Many people utilize vacation rental sites to at least break even on their investment in their first year while waiting for the property to appreciate.
Airbnb offers a handy online calculator that lets users figure out average daily rental rates, occupancy rates, and revenue. After you’ve subtracted items such as principle, interest, taxes, insurance premiums, maintenance expenses, and management fees using these projections, you can produce a cash flow forecast.
The worldwide container house industry is anticipated to develop at a CAGR of 3.7% from 2021-2026, according to The Container Homes Market research study. Architects, do-it-yourselfers, and designers are transforming little containers into inhabitable works of art all around the world.
Keep in mind that it’s usually best to start small, or what they call a tiny house or tiny home with a 20-foot unit which usually cost at $1,200. This can be rented or sold quickly, and the ideas for designs are limitless! On top of that, container homes have a very high resale value (more than 100 percent), and being able to load them onto a truck and transport them anywhere makes them highly desirable.
Location, location and location
This is very important. Regardless of your financial status, one key element to consider when determining how much income a custom home vacation rental can generate is, its location.
Is your property located near a popular tourist destination, such as a seaside resort or a ski area? If that’s the case, you’ll most likely make a good living from rentals. According to Christian Bryant, president of IRC Enterprises, investors have made two to five times more money on a well-located property that is short-term than long-term when it comes to quick cash flow.
On the other hand, if your location only has three months of sunshine and is only visited by tourists during the summer months, you won’t make much money. The bottom line is that a vacation rental necessitates more market research than a typical real estate investment does.
Appreciate the lifestyle benefit
Apart from the financial benefit of a vacation rental, there’s also the lifestyle value – a value that is priceless to many owners of holiday homes. It’s also a value you can’t get from equities or bonds or even long-term rentals.
You may capture that invaluable value from a location you can call your second home – at the beach, in the mountains or wherever else you enjoy it – when it isn’t being rented out. Most property owners don’t have the cash for a vacation rental without making money off of it, so short-term rentals allow you to realize your ambition of having your own vacation house.
How Can We Assist You?
On-Site Storage Solution is pleased with our reputation for selling and renting high-quality shipping containers at the lowest cost. If you want to build a house out of a shipping container, we can help you every step of the way.
We can promise that the building of your container house will be simple and hassle-free experience from start to end. Give us a call at (888) 405-8772 or fill out our contact form to receive a price for your project now!