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.

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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.

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38 Marten Peak Court, Bozeman, Montana 59718

38 Marten Peak Court, Bozeman, Montana 59718

4Bedroom(s)
3Bathroom(s)
0.21Acre
2,476Sqft
Located in the Woodland Park subdivision, this brand new modern, contemporary home is 2,476 sf built by Old Mill Homes. Situated on a quiet cul-de-sac, this home has 4 bed, 3 bath, two living rooms and great floor plan. Estimated completion will be the end of June. Main level includes the master suite and addl bedroom with full bath for guests.
$1,000,000

410 Westridge Drive, Bozeman, Montana 59715

410 Westridge Drive, Bozeman, Montana 59715

4Bedroom(s)
2Bathroom(s)
0.20Acre
2,406Sqft
This meticulously maintained 4-bedroom home in the well-established Figgins neighborhood is must-see. Upstairs features a beautifully updated kitchen/dining room, a generous sized living room, master bedroom, an additional bedroom, and thoughtfully renovated bathroom.
$875,000

1068 Flanders Creek Avenue, Bozeman, Montana 59718

1068 Flanders Creek Avenue, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.10Acre
1,500Sqft
Rare find in Bozeman-a townhouse with a three car garage! This well maintained home is move in ready, from the cozy and private front porch, to the spacious living room with a three sided fireplace allowing enjoyment from the kitchen/dining area as well. The spacious patio features privacy, a hot tub and plenty of room for entertaining or grilling.
$575,000

840 Quail Run Road D, Bozeman, Montana 59718

840 Quail Run Road D, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
1,519Sqft
You'll love this charming and well maintained condo centrally located in the desirable North Star Subdivision in Four Corners. This quiet bright end unit boasts 3 bedrooms, 2 baths and 1519 sqft of living space. The combination open concept kitchen, dining room and living room make for easy and spacious single-level living, accented with vaulted ceilings and a granite finished gas fireplace.
$529,900

2940 Upper Rainbow Road, Bozeman, Montana 59718

2940 Upper Rainbow Road, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.97Acre
1,588Sqft
Lovingly maintained single level home on almost an acre in the desirable Four Corners area. This charming single owner home comes to market for the first time and offers three bedrooms and two bathrooms with an open floor plan. The kitchen has plenty of counter space, ample cabinetry for storage and a center island.
$700,000

727 Harper Puckett Road, Bozeman, Montana 59718

727 Harper Puckett Road, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
20Acre
1,780Sqft
GREAT HORSE OR GENTLEMAN RANCHER PROPERTY. PROPERTY WILL CONVEY WITH 50 INCHES OF WATER RIGHTS FROM THE LOWER MIDDLE CREEK DITCH COMPANY. HAS AAKER CREEK THAT RUNS YEAR ROUND THAT RUNS THROUGH THE ENTIRE PROPERTY. BEAUTIFUL GOLDEN WILLOW TREES. THIS PROPERTY HAD GREAT DEVELOPMENT POTENTIAL AND HAS NO COVENANTS OR ZONING. COULD BE A GLAMPING PROPERTY.
$2,700,000

96 Defender, Bozeman, Montana 59718

96 Defender, Bozeman, Montana 59718

4Bedroom(s)
4Bathroom(s)
0.52Acre
3,393Sqft
Stunning new plan under construction in Black Bull! This modern design is located on a .5 acre+ lot in a quiet cul de sac. Backing to state owned land, this lot provides an abundance of privacy. On the main floor are three bedroom suites, each with their own luxury bathrooms.
$1,899,000

171 Cold Smoke, Bozeman, Montana 59715

171 Cold Smoke, Bozeman, Montana 59715

3Bedroom(s)
1Bathroom(s)
1.19Acre
2,940Sqft
Glorious views of the Gallatin Valley and surrounding mountain ranges from this 1-Level custom. This home features 2 large master suites which has have large walk-in closets. One bath with separate tub and shower, 2nd Master with walk-in closet and 3/4 bath, additional bedroom and office.
$2,375,000

1609 Maple Street B2, Bozeman, Montana 59715

1609 Maple Street B2, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
1,046Sqft
Stunning Mountain views of The Bridgers and Spanish Peaks can be seen from these incredibly well located, brand-new Bridgeview condos. Just down the street from MSU. These newly constructed condos boast dual bedrooms with en-suite bathrooms; featuring beautiful tiled showers with glass doors.
$499,500
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