Sadly the answer to what is the best place to buy Airbnb property isn’t as easy as telling you a city or state. In fact, the best place for one investor could be the worst for another. We can tell you that it’s definitely not Nashville, Orlando, or Las Vegas as those cities either prohibit or highly restrict short-term rentals.
Unfortunately, the legality of local municipals limiting or restricting short-term rentals isn’t very clear as the Supreme Court hasn’t ruled on any case and local judges have given both ruling for and against property owners. We will go over key details that every potential STR owner should think about before searching Airbnb or VRBO property.
What Are The Local Regulations?
This is important as many local municipals restrict or flat out have outlawed short-term rentals. Many of these are in major cities with big businesses that can influence local government. Think Disney in Orlando or Casinos in Las Vegas. So when making a list of cities, make sure to search the municipal code for regulations. If you are having any issues, calling the local government is an easy way to ask.
How Do You Want To Use the Property?
Is the property purely an investment that will be used 100% as a short-term rental or do you also plan to use the property for personal enjoyment. This will help define if the property needs to be within a certain distance to you or easy access via local airports. You may even want to see which cities have direct flights from your home airport. If you plan on using 100% as a rental, this allows you to open up to the whole country.
Do You Want To Buy A Turnkey Rental or Fresh Start?
A turnkey rental has many benefits including having established reviews, in place third-party contractors, being furnished, and being able to rent right away. While a fresh property that has no history on rental sharing platforms will be starting from the bottom without decorations or furniture and no reviews or return guests.
Does the state have an income tax?
Does the state tax short-term rentals?
Does the city tax short-term rentals?
Is There Demand For Short-Term Rentals in The City?
There are multiple ways to see, first is to see what current Airbnbs and VRBOs are in the area. Then check how many reviews they have. After that, you need to look in the surrounding areas and see what there is to do in the area. Great attractions include beaches, state parks, national parks, wineries to name a few.
As you can see there are multiple things you need to consider when buying a rental property. No one can answer the question “What is the best place to buy Airbnb property?” for you. It needs to be personalized to your needs and wants. This way you will be fully invested in the short-term rental.