Is Cavendish, Vermont Good for Airbnb Investment?

To start an Airbnb in Cavendish, Vermont, begin by researching local zoning laws and regulations through the Cavendish Town Office, as Vermont requires short-term rental operators to register with the state and collect 9% rooms and meals tax plus 1% local option tax. Obtain necessary permits including a business license from the town clerk, fire safety inspection certificate, and register with the Vermont Department of Taxes for a Business Account Number. Find a suitable property considering Cavendish's rural mountain setting near Okemo Mountain Resort, ensuring it meets the town's septic and water system requirements for rental properties. Furnish the space with durable, comfortable furniture suitable for ski visitors and summer tourists, including essential amenities like WiFi, heating system capable of handling Vermont winters, and outdoor gear storage. Create your listing on Airbnb and other platforms like VRBO, highlighting proximity to Okemo skiing, hiking trails, and seasonal activities while setting competitive rates (typically $150-300/night depending on season and property size in the area). Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with Vermont's harsh weather conditions, and consider using property management companies like Vacasa or RedAwning that operate in the Mount Ascutney region if you're not local, while maintaining compliance with ongoing tax reporting requirements and guest communication standards.

To identify profitable short-term rental properties in Cavendish, Vermont, focus on locations within 2-3 miles of Okemo Mountain Resort and along scenic routes like Route 103, as proximity to skiing, hiking trails, and the Black River enhances guest appeal year-round. Target 3-4 bedroom properties with mountain or river views, hot tubs, fireplaces, and ski storage, as these features command premium rates averaging $200-350 per night during peak seasons. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Cavendish sees strong demand from December-March for skiing and June-October for summer activities, with occupancy rates typically reaching 65-75% for well-positioned properties. Research competition by examining listings within a 5-mile radius on Airbnb and VRBO, identifying gaps in amenities or underpriced properties, while using STR Helper and Rabbu for market analysis specific to Windsor County. Leverage local resources like the Okemo Valley Chamber of Commerce for seasonal event calendars, partner with Vermont-based property management companies like Green Mountain Vacation Rentals for market insights, and monitor ski resort expansion plans and local zoning regulations that may impact future STR opportunities in this mountain resort community.

To obtain an Airbnb/STR permit in Cavendish, Vermont, you must first contact the Cavendish Town Office at 37 High Street, Cavendish, VT 05142 or call (802) 226-7291 to request a short-term rental application form. Required documents typically include a completed application form, proof of property ownership or lease agreement, site plan showing parking and septic system, certificate of occupancy, proof of liability insurance (minimum $1 million), fire safety inspection certificate from the local fire department, and a waste management plan if using septic systems. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. Submit your complete application to the Town Clerk's office along with payment, after which the town will schedule inspections for fire safety, health department review for septic compliance, and zoning compliance verification. The approval process typically takes 4-6 weeks from submission of a complete application. Cavendish-specific requirements include maintaining adequate off-street parking (minimum 2 spaces), ensuring septic systems can handle increased occupancy, providing emergency contact information to neighbors within 500 feet, maintaining a guest registry, and adhering to noise ordinances with quiet hours from 10 PM to 7 AM. Properties must also comply with Vermont state lodging regulations and collect and remit the 9% Vermont rooms and meals tax.

Short-term rentals (STRs) are generally legal in Cavendish, Vermont, but are subject to state and local regulations that have evolved significantly since 2018. Vermont requires STR operators to register with the state, collect and remit rooms and meals tax, and comply with health and safety standards. Cavendish, like many Vermont towns, has implemented local zoning ordinances that may restrict STRs in certain residential districts or require special permits, particularly in areas near Okemo Mountain Resort where vacation rentals are common. The town typically requires STRs to meet specific occupancy limits, parking requirements, and noise ordinances to maintain neighborhood character. Recent changes include stricter enforcement of tax collection requirements implemented around 2019-2020 and enhanced registration processes. Property owners must also comply with fire safety codes and may face restrictions on the number of rental days per year depending on the specific zoning district. Some areas within Cavendish may prohibit STRs entirely in certain residential zones, while others allow them with proper permitting, making it essential for operators to verify current local zoning compliance with the town's planning and zoning department.

The best areas for Airbnb investment in Cavendish, Vermont are primarily concentrated around the Okemo Mountain Resort area and the village center along Route 103. The Okemo base area and nearby Jackson Gore village offer year-round appeal with skiing from December through March and mountain biking, hiking, and scenic chairlift rides during summer months, attracting tourists willing to pay premium rates for ski-in/ski-out or close proximity accommodations. The historic Cavendish village center near the Black River provides charm for visitors seeking authentic Vermont experiences, particularly during fall foliage season (September-October) when demand peaks significantly. Properties near Lake Rescue and surrounding areas appeal to summer visitors seeking lake activities and peaceful retreats. The Route 131 corridor toward Mount Holly offers more affordable investment opportunities while still providing access to Okemo within 10-15 minutes, making it attractive for budget-conscious ski groups and families. These areas benefit from Cavendish's position as a gateway to multiple ski resorts including Killington (30 minutes) and Stratton (45 minutes), plus proximity to Manchester's outlet shopping and Woodstock's attractions, creating consistent demand from both winter sports enthusiasts and summer/fall tourists exploring central Vermont's recreational offerings.

Airbnb properties in Cavendish, Vermont are subject to Vermont's statewide 9% rooms and meals tax, which applies to all short-term rental accommodations under 30 days and is collected by the host and remitted monthly to the Vermont Department of Taxes if gross receipts exceed $500 annually. Additionally, Windsor County (where Cavendish is located) may impose a local option tax of up to 3% on lodging, though specific rates vary by municipality and are collected alongside the state tax. The Town of Cavendish itself does not currently impose a separate local lodging tax beyond what may be collected at the county level. Hosts must register with the Vermont Department of Taxes, collect taxes from guests at the time of booking or check-in, and file returns by the 25th of each month following the month in which the tax was collected, with payments due at the same time. Exemptions include stays of 30 days or longer, which are considered long-term rentals rather than taxable lodging, and accommodations provided to certain tax-exempt organizations, though hosts should verify current exemption criteria as regulations can change.

To start an Airbnb in Cavendish, Vermont, expect total costs around $485,000-$535,000. Property purchase represents the largest expense at $400,000-$450,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for short-term rental permits, business licenses, and municipal requirements. Insurance premiums for short-term rental coverage cost approximately $2,000-$3,000 annually. Utility setup and deposits for electricity, water, internet, and cable total around $1,000-$2,000. First six months operating costs including utilities ($3,600), cleaning services ($2,400), maintenance ($1,500), marketing ($1,000), and platform fees average $8,500-$10,000. Additional considerations include property taxes, which in Vermont average 1.8% annually, and potential HOA fees if applicable.

Airbnb properties in Cavendish, Vermont typically generate annual revenues between $15,000-$35,000 for seasonal properties, with ski-season rentals (December-March) commanding $150-$300 per night and summer rates of $100-$200 per night, while year-round properties can achieve $25,000-$50,000 annually. Operating expenses generally range from 40-60% of gross revenue, including property management fees (15-25%), cleaning costs ($75-$150 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance ($2,000-$5,000 yearly), resulting in net profit margins of 15-35% for well-managed properties. Success factors in Cavendish include proximity to Okemo Mountain Resort (properties within 5 miles see 20-30% higher occupancy), professional photography and staging, responsive guest communication, and amenities like hot tubs, fireplaces, and ski equipment storage. A typical 3-bedroom chalet near Okemo purchased for $400,000 in 2019 generated $42,000 in gross rental income in 2022 with $28,000 in expenses, yielding a 3.5% cash-on-cash return plus property appreciation, while properties further from ski areas or lacking winter appeal often struggle with 40-50% occupancy rates and lower profitability during shoulder seasons.

Airbnb investments in Cavendish, Vermont typically generate annual ROI of 8-12% due to the town's proximity to Okemo Mountain Resort and strong seasonal tourism demand. Cash-on-cash returns generally range from 6-10% annually, with properties near ski areas and recreational attractions commanding premium rates of $150-300 per night during peak winter and summer seasons. Most investors achieve profitability within 18-24 months, particularly for well-located properties that capitalize on Cavendish's appeal to skiers, leaf-peepers, and summer vacationers, with occupancy rates averaging 60-75% throughout the year and higher returns possible for properties offering amenities like hot tubs, mountain views, or proximity to the Green Mountain National Forest.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Cavendish, Vermont. Local real estate agents like Coldwell Banker Hickok & Boardman Realty and Four Seasons Sotheby's International Realty have agents experienced in investment properties in the Cavendish area who understand the vacation rental market dynamics. AirDNA provides market analytics and revenue projections for Airbnb properties in Vermont ski towns like Cavendish, while Mashvisor offers investment property analysis tools that can evaluate potential returns for short-term rentals in the region. Vermont-based companies like Green Mountain Realty and Okemo Valley Real Estate have local expertise in the Ludlow-Cavendish corridor and work with investors seeking vacation rental properties. National services include Roofstock, which occasionally features Vermont investment properties, and BiggerPockets marketplace where investors can connect with local wholesalers and agents. Local property management companies like Vermont Vacation Rentals and Okemo Mountain Lodging can provide insights into which properties perform best as short-term rentals and may have off-market opportunities for investors looking to enter the Cavendish Airbnb market.