Best cities / states for Airb&b

Short-Term & Vacation Rental Discussions

Best cities / states for Airb&b

Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes

My husband and I are looking to move to a new city and continue to grow our short-term rental / airb&b business there. We have successfully setup 2 places in the mid-west (Kansas City) but are ready for a change of scenery. Initially we would house hack by living in the same place we airb&b (ideally a small multi-unit)

1. What cities have friendly airb&b regulations?

2. Any suggestions on growing markets / rising cities

3. Any suggestions on cities where margins are good for str?

We are looking at warmer states like Texas, Arizona, Utah, and Tennessee.

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Nancy Bachety

Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes

@Sofia Sharkey

You'll find lots of answers if you scroll around these forums.

Smoky Mountains, TN are as you described. @Luke Carl will agree.

St. Augustine, FL if you were interested in NE FL. Both have great margins, both have friendly laws. Laws can change.

Scroll around airbnb as if you were a potential guest. How much are they charging? Where is the house? How much does the house sell for on MLS? It's not too hard plus you'll get some answers here.

Good luck. Do some leg work while you're waiting for answers.

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Dustin P.
Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes
7y
I would suggest looking into Scottsdale and Tempe, AZ.
Low property taxes, values have been steadily rising, lots of events with high demand for short term rentals (Spring Training, Waste Open), lots of snow birds, ASU students, etc.
There are some HOAs here that can be a pain would be the only negative IMO, but there are also plenty of properties in non-HOA areas
1 Reply
Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Lindsay Brake Galveston might not be a bad idea. There is the demand from refinery contractors and from tourism.
Sour Lake Texas, that name doesn't even sound appealing. A lot of the contractors call my town Coffinville, as in you'll end up in a coffin if you come here.
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Mike ReynoldsPro Member
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
7y
Originally posted by @Paul Sandhu:

@Lindsay Brake Galveston might not be a bad idea. There is the demand from refinery contractors and from tourism.
Sour Lake Texas, that name doesn't even sound appealing. A lot of the contractors call my town Coffinville, as in you'll end up in a coffin if you come here.
Only thing in Sour Lake Texas is mosquitoes and craw-fish, The craw-fish is much better eating but you end up eating more mosquitoes.
0 Reply
Aaron L.
Kansas City, MO · Member since 2015 · 123 posts · 46 votes
7y
@Sofia Sharkey
Hey! How did you get a permit in 1 afternoon? My wife has a short term rental in KC and we are hoping to launch another one next month. We've been waiting for months! Many conversations with the City, need to get 55% of adjacent owner's signatures, etc, etc. I actually just talked to a City planner today ...he said they have 100s of applications in the pipeline so they are really backlogged.
What are your thoughts on the future of short term rentals in KC? So far our 1st one is doing pretty well, but there are many new people jumping into the market it seems...
0 Reply
Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Aaron L. Try Burlington Kansas. I get lots of calls from my Craigslist ads. They are doing work at the nuke plant in Burlington and want a furnished house to stay in. I tell them it's 2 hours away, because it's 2 hours away. I rent to working contractors, no namby pamby people on a vacation.
Here's my ad
Craigslist ad
1 Reply
Account Closed
Flipper · Friendswood, TX · Member since 2017 · 401 posts · 368 votes
7y
If you decide to go the Galveston TX route, you should reach out to @Timothy Church. He is the pro on the island when it comes to these investments.
2 Reply
Shelby Pracht
Property Manager · Mammoth Lakes, CA · Member since 2014 · 263 posts · 230 votes
7y
@Sofia Sharkey I know you specifically said that you're looking for somewhere warmer, but my little town is a major tourist hub year round (right near Yosemite National Park and a ski resort). I manage short term rentals for owners here and have a really long wait list of owners trying to use our services, we could definitely use some more knowledgeable investors and managers here! (I have some posts with info about income and occupancy if you're interested, reach out!)
1 Reply
Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@Jake Cohen thank you for the input Jake and Colorado would actually be amazing so I’ll need to put it back on my list of potencial places to do more research on. The reason I originally discarded it was the cost of real estate in the major cities there ...but I’m guessing smaller towns will be more affordable.
Kansas City regulations are ok, you need to get registered with the city and request permission from your neighbors if it’s not your primary residency. It works in the city but once you get to the suburbs or more residencial neighborhoods it can become an issue. We actually had to shut down a listing (it was a test so it’s fine) because the neighbors were not ok with it (for no reason other than being uncomfortable with the idea).
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Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@Aaron L. Hey Aaron let me re-word that as I realize it’s probably misleading. I filled out the paperwork (application) in one afternoon. It took the city months to approve it. They don’t have staff to go through all the applications and it’s a mess. You do have to have 55% of your neighbors approve but in my case, both houses are in commercial areas so neighbor approvals weren’t an issue. They can be a deal breaker in residencial neighborhoods so you just need to do that research before hand / make sure most of your neighbors will be cool with it.
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Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@Sofia Sharkey as far as the future of STR in KC I'll say it's a strong market. The city continues to grow rapidly, jobs are steady and paying well, younger people are coming into the city which is contributing to more tourism and visitors in general. Since the city already passed regulations, the hope is that that will not change anytime soon.
Margins are better than in most other cities because real estate is affordable. However you are right saying that more people are doing STR. Word spreads quickly but I think if you have a great location that weeds out a lot of competition.
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Jake CohenPro Member
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
Thanks for the response. Very interesting about how KC is running their AirBnB licensing program. Thanks for the info about that. If you have any specific questions about Colorado, let me know.
We are teaching a class about investing running your Airbnb if you or anyone else is interested. https://www.biggerpockets.com/forums/521/topics/71...

Originally posted by @Sofia Sharkey:

@Jake Cohen thank you for the input Jake and Colorado would actually be amazing so I’ll need to put it back on my list of potencial places to do more research on. The reason I originally discarded it was the cost of real estate in the major cities there ...but I’m guessing smaller towns will be more affordable.
Kansas City regulations are ok, you need to get registered with the city and request permission from your neighbors if it’s not your primary residency. It works in the city but once you get to the suburbs or more residencial neighborhoods it can become an issue. We actually had to shut down a listing (it was a test so it’s fine) because the neighbors were not ok with it (for no reason other than being uncomfortable with the idea).
1 Reply
Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
@Sofia Sharkey Here in AZ some investors are making up to $1000+ per week on their VRs!
1 Reply
Ryan Swan
Real Estate Agent · Phoenix, AZ · Member since 2012 · 640 posts · 457 votes
7y
@Sofia Sharkey Having a lot of success in Scottsdale/Phoenix with all different property types and price points. I wouldn't rule out Tempe either, as there is a ton of traveler demand there due to events, students, and parents of students.
0 Reply
Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@Ryan Swan great feedback, thanks a lot! I have them down and will be researching / comparing over the next few weeks.
0 Reply
Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@Bevla Reeves that’s good numbers! I’m definitely analyzing a couple cities in AR
1 Reply
Ryan Riches
Real Estate Broker · Denver, CO · Member since 2018 · 87 posts · 66 votes
7y
My wife and I own 2 STRs in Colorado Springs and have 2 others under management. Definitely investor friendly, and is the second most visited city in Colorado next to Denver! The Airbnb market here is pretty localized though, certain areas really only rent out in the summer, while others have pretty good year-round demand.
2 Reply
James Carlson
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
7y
@Sofia Sharkey
Late to the game here, but thought I'd chime in. Can't speak to other cities or states. (Though I know Arizona, as a state, has a law allowing for short-term rentals.) But I know we steer a lot of our STR-minded clients toward Colorado that Colorado Springs. As @Ryan Riches said, it's basically open for Airbnb. Unlike Denver, they have no "primary residence" rule and allow as many STRs as the zoning allows for units. (i.e. R-2 zoning can have 2 STRs. R-4 can have 4 STRs, etc.) What's even better is that there are a fair number of single-family homes zoned R-2, so you get a SFH at a SFH price and then do a little work to the basement to create a second space.
Anyway, good luck with everything. I grew up in Springfield, MO, and have family in Kansas City. That city is becoming cooler all the time.
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Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@James Carlson better late than never - thanks for the feedback ;) I didn’t expect Colorado Springs to come up as much as it has in regards to this topic. I originally ruled out a couple cities in Colorado because of the high real estate prices but will go back and check my math twice. I’m curious to see what margins I can get. Colorado is actually our ideal state to live in so I’d love if we can make this work there.
And you are right about KC, we love to see it growing and getting cooler. Tons of new development everywhere.
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Sofia Sharkey
OP
Property Manager · Kansas City, MO · Member since 2018 · 280 posts · 221 votes
7y
@Ryan Riches that’s a game changer fact for those of us who run airb&b full time. Any thoughts on how competitive it is in your experience with your listings? I’m sure the area / location has a lot to do with it but just wondering from a general perspective
0 Reply
Villy Ellinger
Real Estate Agent · Fort Walton Beach, FL · Member since 2018 · 219 posts · 275 votes
7y
@Sofia Sharkey I'm in Destin/Fort Walton Beach, Florida and love it here, so I'm very partial. Vacation rentals is what I do :-). I own three of my own and also manage and sell for others. I like the Panhandle because the beach is always popular with tourists and we have some of the most beautiful beaches in the world. Also, unlike some other beach destinations the Panhandle of Florida is accessible by car for many families which can be critical if they are traveling on a budget. Also, there is an airport here, so that helps if people come in by flight. The area is popular pretty much year round. It's not "up and coming area" so there aren't any kind of crazy deals to be had, but the speculative high risk factor of "up and coming" areas is also not a big factor here. There are definitely areas where there is growing opportunity. For some reason out of town investors who say they are looking for "new deal" end up always clustering around the old established locales of the area and shy away from the newer sections. I'm guessing some lack of imagination might be to blame, lol. Yes, it's crowded in the summer and traffic gets congested. I have to admit that part as well, lol.
1 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
I'm no expert but every person I know that rented Airbnb went to vacation hotspots, tourist areas, bustling cities.
0 Reply
Ken Latchers
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
Isn't that sort of the point of traveling?

Originally posted by @Anthony Rosa:

I'm no expert but every person I know that rented Airbnb went to vacation hotspots, tourist areas, bustling cities.
0 Reply
Anthony Rosa
Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
7y
Originally posted by @Ken Latchers:

Isn't that sort of the point of traveling?

Originally posted by @Anthony Rosa:
I'm no expert but every person I know that rented Airbnb went to vacation hotspots, tourist areas, bustling cities.
Of course but not everyone puts an Airbnb in those areas I mentioned. There are landlords that have Airbnb in locations that are barely on the map and nobody goes to them.
2 Reply
Rick BassettBusiness Member
Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
7y
@Sofia Sharkey: We are in New Haven CT and have done pretty well with STR's (college town) but it took a year to get enough bookings to generate the enough reviews needed for more bookings, you probably understand that.

My wife and I have researched Burlington VT as the next area to launch and it seems pretty favorable, we will probably pull the trigger up there soon.

Ideally I'd like to open STR's in about 4 to 5 parts of the country and Airbnb hack our way across the country. That is, live in each of our Airbnb's for a month or so and rent them out the rest of the time. Still developing that evil plan...

Rick
475-900-3100
Bassett Property Management5107 Reviews
Website View Page
2 Reply
Robin Searle
Real Estate Agent · Colorado Springs, CO · Member since 2017 · 224 posts · 201 votes
7y
@James Carlson Did you see the most recent Colorado Springs council planning session where they are re-looking at STR's? It was brought up that the El Paso county assessor may start assessing them as commercial properties which would bump up the property tax from 7% to 29%. The state recently tabled a similar idea. Several on the council would love to see this happen so I'm not sure I'd say Colorado Springs is so investor friendly as they used to be. I called the assessor and had a long conversation with him and it is indeed something he's looking at, but said he has a lot of concerns which would need to be addressed first.
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