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Short-term rental regulations and lodging taxes that apply to the five ‘best places to invest’

Maureen Salahshoor Denver, CO

March 31, 2023

AirDNA, a data and analytics company for short-term rental (STR) markets, recently released its Best Places to Invest in 2023 report. To identify high-performing, growing short-term rental markets that provide returns for investors, the company uses its property-level performance data for Airbnb and Vrbo to create a proprietary ranking metric, the AirDNA Investor Score. The score for each market is based on data in four areas: rental demand, revenue growth, investability, and regulation.

Regulation is a new addition in AirDNA’s index this year, recognizing the fact that short-term rentals face increasing regulation at the local and state level. AirDNA incorporated Revedy’s regulation score for each city, which considers both current regulatory risk for STR investors and the likelihood of increased regulation in the future.

The AirDNA report notes legal restrictions that may negatively impact investors. However, even when laws aren’t onerous to STR operators, owners should be aware of the local rules they’re expected to follow in their market. Here’s a breakdown of what hosts need to know in terms of regulations and lodging taxes in the top 5 markets in AirDNA’s ranking. 👉 MORE

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