Evaluating Short‑Term Rental Potential In Donnelly

Thinking about turning a Donnelly cabin into a short-term rental, but unsure how to size demand or run the numbers confidently? You are not alone. Resort towns like Donnelly can perform well in peak months and feel quiet in the shoulder season, which makes planning essential. In this guide, you will learn how to evaluate local demand drivers, build a reliable comparable set, model revenue and expenses, confirm rules and taxes, and choose an operating plan that fits your goals. Let’s dive in.

Why Donnelly draws STR demand

Donnelly sits between Tamarack Resort and Lake Cascade, which creates two strong seasons for short-term rentals. Winter and early spring attract skiers and riders to Tamarack and nearby mountains. Summer brings lake recreation, boating, fishing, and warm-weather escapes on and around Lake Cascade.

Year-round outdoor access keeps the calendar varied. Hiking, mountain biking, fall color, hunting, and snowmobiling can add bookings outside peak ski and lake months. Local events, holiday weeks, and school breaks can also create short high-demand windows.

Seasonality drives revenue. In mountain and lake markets, occupancy can reach strong levels in peak months, while off-season weeks can be much softer. Minimum stays, holiday pricing, and amenity choices all influence how many nights you book and at what rate.

Typical guests include ski and snowboard visitors, lake vacationers, families and friend groups, and hunting or snowmobiling parties. Length of stay often runs 3 or more nights in resort markets, especially around weekends and holiday periods.

Build comps the right way

Strong pricing starts with a comp set. Donnelly is a small town, so expect fewer listings than larger resort markets. If you need more data, include nearby clusters around Tamarack, Cascade, or McCall, and note any location differences.

Step 1: Define your map

• Use Donnelly as your core. If supply is thin, include listings within a practical drive-time radius to Tamarack and Lake Cascade.
• Document what you include or exclude so you can repeat your analysis later.

Step 2: Match property features

• Bedrooms and baths, plus sleep capacity.
• Property type: cabin, condo, or single-family home.
• Amenities that move the needle: lake access or waterfront, hot tub, parking/garage, pet-friendly.

Step 3: Gather listing data

• Nightly base price by month, plus holiday weeks and weekends.
• Minimum nights, cleaning fees, and any extra guest fees.
• Visible booking calendars that show blocked or booked dates.
• Reviews and response times that hint at demand and host quality.
• If you use paid analytics, pull monthly ADR, occupancy, and RevPAR trends.

Step 4: Calculate the metrics

• ADR: Average Daily Rate by month and for the year.
• Occupancy: percent of available nights booked by month and for the year.
• RevPAR: ADR multiplied by occupancy percent.
• Seasonal index: how much of total revenue lands in winter vs summer vs shoulder months.
• Supply trend: active listing counts year over year to spot growth or tightening.

Step 5: Adjust and interpret

• Make small per-night adjustments for differences in bedroom count and sleep capacity.
• Apply premiums for unique features. Waterfront generally prices higher than inland, and a private hot tub often adds a meaningful nightly lift.
• Separate professional listings from casual hosts. Pro-managed listings can show higher ADR and occupancy due to better optimization.

Run the numbers with a simple worksheet

Use the comp data to build a realistic projection. Keep it simple and month-by-month if you can.

Key inputs you choose

• ADR: your projected average nightly rate.
• Occupancy: your projected annual occupancy as a decimal (for example, 0.50).
• Nights available: typically 365, minus any owner blocks.
• Cleaning fee per booking.
• Average length of stay and estimated bookings per year.
• Platform and payment fees as a percent of rental revenue.
• Management fee as a percent of rental revenue if you plan to hire a manager.
• Annual costs: property taxes, insurance, utilities, HOA, maintenance, and a CapEx reserve.
• Mortgage debt service if financed.

Core formulas to use

• Gross rental revenue = ADR × Nights available × Occupancy
• Cleaning revenue collected = Cleaning fee × Bookings per year
• Host and platform fees = Gross rental revenue × Platform fee percent
• Manager fee = Gross rental revenue × Management fee percent
• Net operating income (NOI) before financing = Gross rental revenue + Cleaning revenue − (Host/platform fees + Manager fee + Taxes + Insurance + Utilities + Maintenance + HOA + CapEx + Other costs)
• Cash flow after debt service = NOI − Mortgage

Break-even occupancy

• Practical approach: add up your fixed annual costs, including mortgage if applicable. Divide that total by your projected ADR × Nights available to find the occupancy you must achieve to cover costs. Adjust for any variable per-stay costs if they are not covered by cleaning fees.

Three scenarios to test

• Conservative: lower-quartile ADR and softer shoulder-season occupancy.
• Expected: median ADR and occupancy from your comp set.
• Optimistic: upper-quartile ADR and strong peak-month occupancy with solid marketing.

How to build your projection

1. Pull 8 to 12 comps that closely match your home and map monthly ADR and occupancy where possible.
2. Create a month-by-month revenue table: ADR for the month × nights in month × occupancy for the month.
3. Add cleaning revenue based on estimated bookings. Subtract platform and management fees.
4. Subtract annual operating costs to find NOI, then subtract mortgage for after-debt cash flow.
5. Review your conservative case to make sure you can weather off-season vacancy.

Copy-and-paste worksheet fields

• Property address:
• Beds/Baths:
• ADR (projected):
• Average stay nights:
• Annual occupancy percent (by month if possible):
• Nights available (annual):
• Cleaning fee:
• Estimated bookings per year:
• Platform and payment fees percent:
• Management fee percent:
• Annual property taxes:
• Annual insurance:
• Annual utilities:
• Annual HOA:
• Annual maintenance and CapEx reserve:
• Other annual costs (permits, licensing, accounting):
• Mortgage payment (annual):
• Estimated annual gross revenue:
• Estimated annual expenses:
• Estimated annual NOI:
• Estimated annual cash flow after mortgage:

Regulations, taxes, and insurance to confirm

Before you list, verify local rules. Requirements can change, and small communities often set occupancy, parking, and noise standards.

• City and county rules: Check with the City of Donnelly and Valley County Planning and Zoning for any STR registration, permits, inspections, occupancy limits, or parking requirements.
• HOA and deed restrictions: Many communities limit or regulate short stays. Review CC&Rs and bylaws before you buy or furnish.
• Taxes: Idaho sales tax generally applies to lodging, and local transient lodging or occupancy taxes may also apply. Platforms sometimes collect and remit taxes in certain places, but coverage varies. Confirm registration, collection, and remittance requirements with the Idaho State Tax Commission and the local tax authority.
• Insurance: Standard homeowner policies often exclude STR activity. Secure a short-term rental endorsement or a specialized policy that covers liability, property damage, and potential loss of income. Do not rely only on platform-provided protections.
• Safety and code: Confirm smoke and CO detectors, fire extinguishers, egress, and any local safety checklist. The local fire district can advise.
• Business licensing and reporting: Some jurisdictions require a business license or occupancy reporting. Verify what applies to your address.

Management options and operating costs

Choosing how you operate will shape both your time commitment and your bottom line.

• Self-management: You keep more revenue and control pricing and guest experience. It requires availability for inquiries, turnovers, maintenance, and emergencies. Best if you live nearby or have reliable local vendors.
• Co-host or partial management: Someone handles guest communication or turnovers only. Fees often run 10 to 20 percent depending on services.
• Full-service management: A local manager handles listing creation, pricing, bookings, cleaning coordination, and guest support. Typical fees range from 18 to 30 percent of rental revenue. Cleaning, linens, and minor maintenance are often billed per stay.

Operational costs to budget include cleanings, laundry and linens, consumables, property management fees, routine maintenance, and marketing or photography. Dynamic pricing tools can help optimize rates. Some managers include pricing services in their fee.

Risks to watch and how to mitigate

• Off-season vacancy: Build conservative shoulder-season assumptions and keep a reserve.
• Regulatory changes: Track city and county discussions and maintain compliance.
• Property wear and damage: Screen guests, require deposits where allowed, and set clear house rules.
• Competitive supply growth: Monitor new listings and be ready to adjust pricing or upgrade amenities to stay competitive.

A practical next step

If you want a tailored income view for a specific address, gather a few details so the estimate reflects your plan:

• Exact address and property type.
• Bedrooms, baths, sleep count, and furnishing level.
• Unique amenities like waterfront, hot tub, or private dock.
• Planned owner blocks on the calendar.
• Management plan: self, co-host, or full-service.
• Mortgage terms if financing.
• Any HOA or deed restrictions.

When you are ready to evaluate or purchase a Donnelly property, or you want local management guidance, reach out to the team at Valley Properties Group. We combine local market knowledge with practical sales and property management support so you can move forward with confidence.

FAQs

What makes Donnelly attractive for short-term rentals?

• Donnelly benefits from two primary demand drivers: ski and mountain access at Tamarack in winter and lake recreation on Lake Cascade in summer, with year-round outdoor activities supporting shoulder months.

How do I estimate nightly rate and occupancy in Donnelly?

• Build a comp set of 8 to 12 similar listings, map monthly ADR and occupancy, adjust for amenities like waterfront or hot tubs, and test conservative, expected, and optimistic scenarios.

What permits or taxes apply to Donnelly short-term rentals?

• Confirm City of Donnelly and Valley County requirements for registration or permits, and check Idaho sales tax and any local lodging taxes, including who collects and remits on each platform.

Should I self-manage or hire a local property manager?

• Self-management can net more but requires time and local vendors; co-host and full-service options trade fees for hands-off operations. Choose based on your availability and service expectations.

How seasonal is demand in Donnelly?

• Expect strong peaks in winter and summer with weaker shoulder seasons. Peak months can achieve much higher occupancy than off-season weeks, which may be modest.

How much should I reserve for furnishings and replacements?

• Set aside 5 to 10 percent of gross rental revenue annually for a CapEx and refresh reserve, and consider more for luxury finishes or high turnover listings.