The short-term rental market in Annapolis, Maryland is thriving, with an average 47% occupancy rate, a $442 daily rate, and $32,660 in monthly revenue, making it a lucrative opportunity for investors and a popular destination for tourists.
Thriving Short-Term Rentals in Annapolis, Maryland: A Lucrative Market
Annapolis, Maryland, is experiencing a robust performance in its short-term rental market, making it an attractive destination for both investors and travelers. With an average occupancy rate of 47%, short-term rentals in Annapolis are in high demand, particularly during peak tourist seasons. The average daily rate for these rentals stands at $442, contributing to a substantial monthly revenue of $32,660. This strong market performance is driven by the city's historic charm, its proximity to the United States Naval Academy, and the vibrant tourist activities around Chesapeake Bay. As the city continues to attract around 2 million visitors annually, the potential for high rental income and flexible property use makes investing in Annapolis vacation rentals a highly lucrative opportunity.
Short-Term Rental Regulations in Annapolis, Maryland for 2024
Registration and Licensing
- Registration Requirement: Hosts must register their short-term rental through the City of Annapolis's Citizen-Self Service (CSS) Portal to obtain a license[5|.
- Exemption from County Registration: Short-term rentals within the City of Annapolis are exempt from registering with Anne Arundel County, but must register with the City of Annapolis.
Application Process
- Online Application: Submit the application through the City of Annapolis's CSS Portal. This includes selecting the business type, adding the rental location, and providing details about the hosting sites used[5|.
- Required Information: Provide the Property Tax ID number, sales and use tax account number, and other relevant details.
Fees and Taxes
- Occupancy Tax: Pay an occupancy tax of 8% on the rent, as per Anne Arundel County Code. This tax rate increased from 7% to 8% effective July 1, 2023[4|.
- License Fees: Fees may be required and will be invoiced through the CSS Portal after the application is reviewed by city staff.
Compliance Requirements
- Hosting Platforms: Provide the names of all hosting platforms (e.g., Airbnb, VRBO) and update this information within 10 days of any changes[2|.
- Safety Standards: Ensure the property meets building and fire safety codes, including the installation of smoke detectors on each level, in each bedroom, and outside each sleeping area.
Additional Rules
- Rental Period: The rental period must be at least 24 hours[2|.
- Tax Compliance: Hosts must not have any overdue taxes, fines, or fees owed to the county[2|.
- Zoning Restrictions: Comply with zoning rules that may prohibit short-term rentals in certain districts within Annapolis.
Enforcement
- Penalties for Non-Compliance: Operating without proper registration or licenses can result in fines and penalties, including up to $1,000 per day of violation.
Tips for Furnishing and Designing an Inviting Airbnb in Annapolis, Maryland
Understanding Annapolis's Unique Style
- Annapolis is known for its historic charm, waterfront location, and cultural heritage. Reflect this in your design by incorporating coastal chic, traditional, or colonial furnishings that resonate with the city's heritage.
Choosing the Right Furniture
- Opt for high-quality, stylish, and durable furniture. Consider pieces that are easy to clean and maintain, such as sofas with washable covers and beds with storage for extra space.
- Avoid real and faux leather furniture as they are tough to maintain. Instead, choose sturdy, lightweight materials for chairs and sofas.
Enhancing the Space with Local Touches
- Incorporate local art or antique accents to celebrate Annapolis's historical and coastal vibe. Nautical themes and artworks depicting seascapes are particularly favored.
Layout and Functionality
- Measure your rooms to determine the best layout. Ensure there is plenty of space to move around and that natural light sources are not blocked.
- Use space-saving furniture like sofa beds, folding tables, and ottomans with hidden storage compartments to maximize functionality.
Amenities and Comfort
- Provide essential amenities such as modern appliances, a coffee maker, microwave, toaster, and kettle. Ensure the kitchen is well-equipped to support local cuisine, such as including crab-cracking tools.
- Include high-quality, durable towels in neutral colors, and provide enough storage for guests' toiletries and personal items.
Creating a Welcoming Atmosphere
- Use mirrors to make the space feel bigger and brighter. A full-length mirror with a stylish frame can add a touch of elegance.
- Add plants to liven up the space and create a cozy atmosphere with features like cozy fireplaces and outdoor spaces where guests can enjoy the Maryland weather.
Accessibility and Cleanliness
- Consider making your Airbnb accessible to guests with disabilities by adding ramps, wide doorways, and grab bars in bathrooms.
- Maintain high cleanliness standards, including freshly sanitized mattress covers, clean bed linens, and thoroughly cleaned surfaces after each guest stay.
Seasonal and Local Considerations
- Take advantage of Annapolis's seasonal events and attractions by ensuring your property is ready for different times of the year. For example, highlight waterfront views and outdoor activities during warmer months.
- Provide information on local attractions, parks, walking trails, and activities to enhance the guest experience.
Neighborhood Considerations
- Choose neighborhoods that are highly sought after, such as the historic district, Eastport, Murray Hill, West Annapolis, and the downtown area, due to their charm and proximity to key attractions.
Practical Tips to Run a Successful Short-Term Rental Business in Annapolis, Maryland
To ensure a smooth and profitable short-term rental business in Annapolis, Maryland, several practical tips can make a significant difference. Here are some key considerations:
Noise Regulations and Guest Communication
Inform your guests about quiet hours and noise regulations to maintain a peaceful environment for both the guests and the neighbors. Including this information in your digital and physical house manual helps set clear expectations.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details. This manual should be easily accessible to guests, either in the property or via a digital link, to ensure they have all the information they need for a comfortable stay.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks, along with parking instructions accompanied by photos to avoid any confusion.
Enhanced Guest Experience
Ensure that your property is well-maintained and guest-ready. Partnering with a reputable property management service can help oversee cleaning, inspections, and property maintenance, as well as manage bookings and guest inquiries efficiently.
By following these tips, you can enhance the guest experience, reduce potential issues, and maintain a successful and compliant short-term rental business in Annapolis.
Here is a brief list of house cleaning providers in Annapolis, Maryland:
House Cleaning Services in Annapolis, MD
Bello’s Cleaning
- Licensed, insured, and bonded
- Offers weekly, bi-weekly, every 4 weeks, and one-time cleanings (deep cleaning, move in/out, post construction, vacation rental)
- 24-Hour Guarantee and convenient scheduling
- Located at 1419 Forest Drive Suite 205, Annapolis, MD 21403
- Phone: 443-837-4034.
Molly Maid of Central Anne Arundel County
- Customized cleaning plans with no contracts
- Services include floor cleaning, dusting, washing and sanitizing, and recurring cleaning
- Eco-friendly cleaning products available
- Located in Central Anne Arundel County, serving Annapolis and surrounding areas
- Phone: Available for free estimate.
You’ve Got Maids of Annapolis
- 100% Satisfaction Guarantee with 52-Point Deep Clean™
- Customized cleaning plans, move-in cleaning, and landlord guarantee
- Uniformed maids, on-site supervisor, and all cleaning supplies provided
- Located at 1993 Moreland Pkwy Suite 104, Annapolis, MD 21401
- Phone: 410-626-0706.
Lea’s Cleaning Company
- Rated #1 cleaning business in the Maryland and D.C. area
- Offers free estimates, same-day services, and affordable rates
- Services include house cleaning, office and commercial cleaning, move-in/out cleaning, and Airbnb cleaning
- Located in Annapolis, MD
- Phone: 443-863-9735.
Annapolis, Maryland Short-Term Rental Management Fees: A Comprehensive Guide
In Annapolis, Maryland, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as Awning, PMI Annapolis, and RedAwning, which handle comprehensive tasks including guest communication, marketing, and maintenance, tend to charge fees on the higher end of this spectrum, often starting at around 15% of the revenue.
Basic services, which may include only the essential management tasks, can be less expensive but still fall within this range. Additionally, property owners may incur extra fees for services such as cleaning, repairs, and design, which can be billed separately or included in the overall management fee. Understanding these fee structures is crucial for property owners to maximize their rental income while ensuring their properties are well-managed and attractive to guests.