What are some Airbnb-friendly cities?

Question

Are there any cities out there that are explicitly AIrbnb-friendly?

Ethan Cooke · Answer

@Logan Allec -

Scott Shatford, CEO of Airdna.co which is a company that packages and sells AirBnB data to help hosts pick and run properties in the most profitable areas, did a detailed, data-driven analysis on best and worst US cities to buy and/or host AirBnb properties:

http://blog.airdna.co/buy-vacation-home-properties...

Morgan Stanley posted a report citing that 6 cities are particularly AirBnB-friendly and therefore likely to take market share from hotels: San Diego, Detroit, Phoenix, Philadelphia, Houston, and Dallas

https://www.barrons.com/articles/six-cities-where-...

And here's a previous thread on BiggerPockets with a lot of good insights...

https://www.biggerpockets.com/forums/530/topics/49...

Enjoy!

Erin Spradlin · Answer

@Casity Kao,@Logan Allec - Hey- I'm a real estate agent that specializes in Airbnb investments in Denver and Colorado Springs. Denver has implemented some laws that legalize airbnb for your primary residence, but it can be difficult for investors. There's some tolerance to it if you can keep your neighbors happy, but it's not a long-term strategy unless you plan on living there. (Also, Denver is expensive and getting more expensive.) We advise our clients to look south at Colorado Springs for airbnb, which is about 5 years behind Denver on prices, is appreciating quickly, and is very Airbnb friendly. They don't have laws around it right now and have no plans to implement any. I have clients that have bought there for this reason as well as family that are running two single family homes down there for just airbnb and short tern rentals. Right now, the Colorado Springs Airbnb market is very attractive.

Paul Sandhu · Answer

I do very little research into vacation rentals, but I do quite a bit of research into STRs for travelling or temporary workers.

Locations with a large industry or a large employer often have a large market for STRs for travelling workers.  Examples would be a university, large hospital, military base, industrial complex (like a refinery or power plant).  Look at CraigsList housing where there is a big employer, you'll see people that have specific ads targeting temporary workers at the big employer.

There are even temporary situations for STRs.  The Keystone Pipeline.  Windfarm construction.  The construction of a $320,000,000 chicken processing facility in Humbolt Tennessee starting in 2 months (my town was in the running for this facility). The $750,000,000 stadium in Las Vegas for the NFL Raiders.

The bad thing about vacation rentals is that people leave when the money they have budgeted runs out.  With rentals for temporary workers, they are going to stay as long as they are making money.  They are usually making better money at their temporary job than their regular job at their permanent home.

Luke Carl · Answer

Anywhere with heavy tourist traffic!

Amber Glus · Answer

@Ethan Cooke thank you, I was looking for this information and these resources are so helpful. Much appreciated.

Keith Courtney · Answer

@Logan Allec -

Kissimmee, FL and Davenport, FL are both short term rental friendly cities.  Both cities are just south of Orlando and close to Disney World and our other theme parks.

Keith

Dan H. · Answer

San Diego STR regulations are a work in progress.  Purchasing in San Diego relying on STR for a substantial ROI is a risky investment.  Any RE investment in San Diego should project the desired return as a LTR because the SRP option can vanish at any time.

We have an STR duplex that has been STR since 1999.  There have been various STR regulations proposed most of which do not have a grandfather clause.

So I would not list San Diego as an STR friendly city even though it has produced good ROI for STR in the past.

Megan Davidson · Answer

I've found this study fairly helpful in determining friendly cities for STR regulations: http://www.rstreet.org/wp-content/uploads/2016/03/...

Richard Ibeh · Answer

@Logan Allec  Fort Lauderdale is friendly once you are registered with the city. Airbnb reports the taxes in the area so it's pretty smooth sailing once you get everything up and running. No city minimum or restrictions.

What are some Airbnb-friendly cities?

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