Trying to decide whether a short‑term rental or a long‑term lease will work best near West Union and Lake Keowee? You’re not alone. Investors are drawn to the lake lifestyle and steady Upstate growth, but each strategy performs differently around the water. In this guide, you’ll compare cash flow patterns, seasonality, and the rules that actually determine what you can rent and for how long. Let’s dive in.
West Union and Keowee demand snapshot
Lake Keowee is a major draw in Oconee County, with boating, fishing, marinas, and lakefront amenities fueling visitor interest. Nearby towns like Seneca and Walhalla, plus regional visitors from Greenville, Asheville, and Clemson events, add to the weekend and holiday flow. That mix can support strong short‑term demand when the property has the right lake access and amenities.
Long‑term demand depends on local demographics, jobs, and affordability. Population trends, incomes, and housing stock shape baseline rental needs for 12‑month leases. Second‑home ownership also influences pricing and inventory. If you plan to hold as an LTR, track local vacancy, lease rates, and any new construction that may change supply.
Guest segments typically include vacationing families and groups, boating and fishing enthusiasts, couples seeking quiet retreats, snowbirds looking for extended stays, and long‑term renters tied to local employment or remote work. Your property’s location, access, and features will determine which segment you serve best.
STR vs. LTR: what changes your return
Revenue patterns
- Short‑term rentals can earn higher average daily rates during peak lake months and on weekends. Revenue is variable and depends on occupancy and pricing management.
- Long‑term rentals deliver stable monthly income with less volatility. Gross revenue may be lower than STRs in peak season, but cash flow is steadier year‑round.
Costs and workload
- STRs carry higher operating costs and more hands‑on management. Expect cleaning after each stay, frequent maintenance, owner‑paid utilities, consumables, platform fees, and potentially higher management fees if you outsource.
- LTRs usually have lower turnover and lower day‑to‑day involvement. Tenants often pay utilities, and property management fees are typically lower than STR management.
Typical expense ranges to model for STRs as a percentage of gross revenue include cleaning and turnovers, platform fees, management or co‑hosting, utilities, supplies, and routine maintenance. LTR budgets generally include property management, a vacancy reserve, and maintenance, with utilities commonly tenant‑paid.
Risk and flexibility
- STRs offer pricing power for true waterfront, private docks, and well‑appointed homes. They also carry income volatility and more regulatory exposure.
- LTRs reduce volatility and simplify operations, but you give up upside during peak lake seasons and have less flexibility to capture event spikes.
Regulations, HOAs, and lake access
County rules and taxes
Short‑term rental rules vary by jurisdiction. In Oconee County and nearby municipalities, you may need registration, a business license, inspections, and to follow occupancy and nuisance rules. STR owners are commonly responsible for collecting and remitting applicable state and local accommodations or hospitality taxes. Confirm current requirements with county offices and the state revenue department before you list.
HOA covenants and neighborhood rules
Many lake communities have HOAs with covenants that limit or prohibit STRs or set minimum rental durations. Some require tenant registration or owner occupancy periods. HOA approvals or restrictions can determine whether STR is even an option. Always review recorded covenants and bylaws in writing prior to closing.
Dock rights and legal water access
Waterfront value and STR appeal hinge on lawful access. Verify whether the property has a private dock, deeded slip rights, community dock access, or no legal access. Ownership and dock permitting can involve multiple authorities. Dock insurance, maintenance, and seasonal water level changes affect guest experience and operations.
Safety, septic, and environmental items
Many lake homes use septic systems and wells. Some jurisdictions tie occupancy to septic capacity, and higher turnover can accelerate wear. Local rules may limit shoreline changes, open fires, or noise. Build these factors into your operating plan and house rules.
Insurance and liability
Standard homeowner policies often exclude vacation rental activity. STR owners typically need a commercial short‑term rental policy or an endorsement that extends liability and property coverage while rented. If you offer dock or watercraft access, discuss specialized coverage with your insurer.
Seasonality and guest experience
When guests book
- Peak season runs from late spring through summer when boating and swimming are prime.
- Spring and fall often deliver strong weekends for hiking, waterfalls, fishing, and foliage.
- Late fall into winter can be slower unless you target retreats, holidays, or longer winter stays.
- Holiday weekends and regional events, including nearby college schedules, can create sharp demand spikes outside peak summer.
Features that lift ADR and occupancy
- Legal, convenient water access. Private docks or guaranteed slip access command higher rates.
- Outdoor living. Decks with views, grills, seating areas, and compliant fire pits help convert browsers into bookings.
- Interior comfort. A well‑equipped kitchen, multiple bathrooms, reliable high‑speed internet, laundry, and family‑friendly furnishings support strong reviews.
- Safety and clarity. Good lighting, safe stairs to docks, clear parking, first‑aid kits, and easy check‑in reduce friction and boost satisfaction.
- Transparency. Disclose steep drives, narrow roads, and long walks to the water. Setting expectations protects reviews.
Policies that prevent complaints
Clear rules for parking, boats and trailers, quiet hours, maximum occupancy, smoking, and pets help maintain neighbor relations. Consider security deposits and written rental agreements that comply with state and local law.
A simple modeling template you can use
Start with a monthly cash‑flow worksheet and test scenarios for each strategy.
- STR revenue: ADR × nights booked per month. Net cash flow = Monthly revenue − (mortgage + property taxes + insurance + HOA + utilities + cleaning + platform fees + management + maintenance reserve + supplies + local lodging taxes).
- LTR revenue: monthly rent under a 12‑month lease. Net cash flow = Monthly rent − (mortgage + property taxes + insurance + HOA + property management + maintenance reserve + vacancy reserve).
Break‑even occupancy for STR: solve for the occupancy where ADR × nights × your net‑of‑fees rate covers all owner costs. Run multiple scenarios, such as 30, 50, and 70 percent occupancy, with conservative ADRs, to see sensitivity. Layer in reserves for furniture replacement and higher routine maintenance from guest turnover.
Both STR and LTR allow expense deductions. If you materially participate in an STR, tax treatment can differ. Speak with a tax professional about depreciation timing and any exposure to additional taxes.
Which strategy fits your property
Favor an STR if:
- You have true waterfront or guaranteed dock access, strong amenities, and permissive HOA and county rules.
- You can self‑manage or budget for professional STR management, and you are ready for upfront furnishing and ongoing hospitality‑level upkeep.
Favor an LTR if:
- HOA covenants or local ordinances restrict short‑term stays.
- The property lacks legal water access or is far from lake and trail amenities.
- You want steady monthly cash flow with lower day‑to‑day involvement.
Due diligence checklist
- Zoning and STR rules. Verify county and municipal requirements for permits, inspections, registration, and taxes before committing to an STR plan.
- HOA covenants. Obtain recorded documents and written confirmation of any rental limits or minimum stays.
- Dock and water rights. Confirm deeded slips, existing dock permits, shoreline restrictions, and any pending changes that could affect access.
- Utilities and septic. Inspect septic capacity and age, confirm well or public water, and ensure systems can handle guest loads.
- Insurance. Get quotes for STR endorsements or commercial policies. Ask about coverage for docks and any watercraft you plan to offer.
- Market comps. Pull local STR and LTR comps, and build occupancy and ADR scenarios across seasons. Seek performance history for similar nearby properties if available.
- Physical inspection. Evaluate driveways, parking for boats, terrain steepness, stairs to the water, and lakeside wear on structures.
Next steps with a local guide
Choosing between STR and LTR near West Union and Lake Keowee comes down to the right mix of access, rules, seasonality, and your management capacity. With neighborhood‑level insight into covenants, docks, and demand patterns, you can match a property to the strategy that fits your goals.
If you want help stress‑testing your scenarios or identifying properties with the lake access and HOA profiles that support your plan, connect with Amy Twitty. Start Your Lake Keowee Search with Amy Twitty when you are ready.
FAQs
Are short‑term rentals near Lake Keowee always more profitable?
- Not always. Higher peak rates can be offset by vacancy, operating costs, and regulatory or HOA limits, so run property‑specific scenarios before deciding.
How important is a private dock for an STR on Lake Keowee?
- Very important. Legal private docks or deeded slip access significantly improve marketability, occupancy, and pricing power for lake properties.
What local rules should I check before listing an STR in Oconee County?
- Confirm any required STR registration, business licensing, inspections, occupancy limits, and state and local accommodations tax collection and remittance.
What insurance does an STR owner typically need on the lake?
- A short‑term rental policy or endorsement that covers guest liability and property damage, plus coverage for docks and any watercraft if offered.
When is peak season for STRs around West Union and Lake Keowee?
- Late spring through summer is peak, with strong spring and fall weekends, and slower late fall into winter unless you target holidays or extended stays.
How do I estimate break‑even occupancy for an STR?
- Use ADR × nights × occupancy minus itemized costs, then test multiple ADR and occupancy combinations to find where net cash flow turns positive.
