$45k going once, $45k going twice, $45k going three times – leased to the lucky tenant
10 years ago, I leased a Monomoy waterfront property for $40k for a week. 6 bedrooms, 8 baths, pool, gorgeous. Highest $/night for a residential rental. People swooned and swanned – I can’t believe they’re getting that $… Naturally, I analyzed the numbers. For a comparable suite at one of the high-end hotels, $2k/night was the starting point. 6 bedrooms x 7 nights x $2k/night = $84k. So, $40k was a value. One may not fill every bedroom, though. But, they get a kitchen, living and dining rooms, yard, privacy, etc. And, for an extra $200/night, they can get turndown maid service. Then, someone built a dialed-in 8 bedroom, 10 bath amazing property in an unstoppable location and leased it for $45k/wk. – some more swooning and swanning. The math: 8 bedrooms X 7 nights x $2k/night = $112k/week. Now, investors have recognized this delta and there has been a proliferation of $45k/wk rentals. End of the day, those rentals are strong values (and don’t mess with the swans in Hummock Pond).