Short Term Rentals on the rise at PK
By Steve Nussbaum
Short-term rentals (STRs), also known as vacation rentals, have been on the rise at Possum Kingdom every year since the divestiture of the land surrounding the lake back to the homeowners by the Brazos River Authority (BRA).
For decades before the divestiture, BRA owned the land and homeowners leased the land from BRA, which made it illegal for homeowners to lease their properties. That has since changed, however, and the popularity of online marketplaces such as Airbnb and Vrbo have made it easy for homeowners and investors to lease their properties to weekend visitors.
The price of property, especially lakefront property at PK, has become too expensive for many to buy, but STRs offer an alternative for people to come enjoy the lake and its surroundings.
For years the only hotel at PK was The Cliffs Resort, followed later by Lush Resort. The STRs have filled that housing void and created a big market that provides tax revenues for the Possum Kingdom Chamber of Commerce (PKCC). The county collects hotel/motel tax revenues from all hotels, cabins and STRs in Palo Pinto County, and the local chamber gets 71.25 percent of those tax revenues. The remaining 28.75 percent is split with other communities in the county. The tax revenues collected by hotels in the Mineral Wells city limits, meanwhile, stay in Mineral Wells.
“They are very limited on how they can use these funds from the county,†said PKCC director Staci Williams. “They must go back into the chamber budget with the specific purpose of marketing PK and putting more heads in beds.â€
These short-term rentals are booked almost every weekend during the busy season, but they’ve also proven to be popular during the offseason as well. With the loss of The Cliffs hotel to a fire in April, these STRs are more important than ever for large groups and big events.
For example: Over the past few years, the Rocker B Ranch in Graford has brought in more than 20,000 people from all across the country for weekend baseball tournaments, andsometimes these teams and their fans have had a hard time finding places to stay.
Other notable large events include the PK Muscle Boat Association’s Hell on Water Poker Run, the Fourth of July holiday weekend and numerous weekend fishing tournaments. Local businesses rely on these events for their income.
The STR industry is seeing huge growth, especially outside urban areas. According to AirDNA, a site that follows trends in the industry, STR revenues were up 27 percent in 2021 and are expected to be up 23 percent over 2021 this year. In fact, STR revenues could break a record this year and surpass the pre-pandemic numbers.
According to AirDNA, people are looking for adventure and outdoor stays. The STR numbers are down in urban areas but are skyrocketing in rural areas with lots of natural beauty and things to do.
Taken as a whole, the data shows that the STR business is here to stay – and with the recently released Palo Pinto property tax values, more people could decide to recoup some of the money they spend on their vacation homes.
Most areas around Possum Kingom Lake allow short-term rentals. The exceptions are The Cliffs, The Harbor, The Ranch, Gaines Bend and most of the condominiums. These neighborhoods have specific property owner association rules against short-term rentals, but those rules can be difficult to enforce. Most homeowners don’t seem to mind the STRs; they just don’t want them next door.
Investors, meanwhile, are looking for properties to convert to STRs, and that demand is keeping local property management companies busy. One of those companies is Lush Property Management, which is locally owned and operated by Bo Bennett and Clay Springer.
Bennett, who with his wife, Gelasia, also owns the Lush Resort, said his property management company grew out of a need to control the house next to the resort. Its previous owners allowed large groups to stay at the hotel, and many times these guests would get very loud and make their way over to the resort. So, in 2017, Bennett convinced the owner to let him manage the property, and Lush Property Management was born. Today the company has 15 short-term rentals that it manages on the lake.
Lush Property Management is an example of how to make the concept work for owners, guests and neighbors alike. When Bennett first opened Lush, a concerned neighbor came over because he heard that Lush would be allowing live bands to play. Bennett assured the neighbor that things would remain under control, and he asked the neighbor to trust him. The key, Bennett said, was keeping the lines of communication open.
A couple of years later, after seeing the job Bennett and Springer had done with that short-term rental property, the neighbor asked if Lush would manage his property, too.
Bennett said it’s been a good relationship ever since.
Lush Property Management’s formula for success is that most of its homes can accommodate between eight and 20 people, and the properties can be rented for between $1,600 to $2,500 a night. Each home has very specific rules that have to be followed by the guests, and those rules are communicated to them throughout the rental process.
Lush recently hired three new employees who meet all guests at the properties during their arrival and departure times. These employees also monitor the properties from the road and by boat.
Springer said that Lush has very few problems with guests because of this method of oversight, and added that much of the company’s business comes from people who are having family reunions.
“It’s awesome to see people from around the country come together for a family reunion at one of the properties,†Bennett added.
The company also has had its homes used for bachelor and bachelorette parties. The guests were described as “respectful,†and there have been no problems stemming from rowdy behavior.
Springer says Lush Property Management uses VRBO as its booking site of choice, as it tends to be the most popular choice at PK.
A recent search of potential properties revealed prices as low as $190 per night for a small, one-bedroom lake cabin and as high as $2,200 per night for a large home. Bennett says he has gotten three new inquiries since the property tax valuations came out in April, and he added that demand has increased since the fire at the Inn at the Cliffs.
The other thing that makes short-term rentals appealing at PK are the rates, Bennett said, which are affordable for most families and make for a very popular weekend getaway.
These short-term rentals are good for the area, and they provide an option that didn’t exist 12 years ago. Based on trends and data, they should continue to attract new guests.
Not all management companies are created equally, but the actions taken by Bennett and Springer with Lush Property Management prove they’re looking out for the whole community.
