The short-term rental market in Arlington, Texas, is performing well, with a median occupancy rate of 55%, an average daily rate of $150, and an average annual host income of $29,000, indicating a stable and profitable investment opportunity.
Thriving Short-Term Rental Market in Arlington, Texas
Arlington, Texas, is experiencing a robust short-term rental market, making it an attractive destination for investors and hosts. With a median occupancy rate of 55%, Arlington's short-term rentals are in high demand, indicating a stable and profitable investment opportunity. The average daily rate for these rentals stands at $150, contributing to an average annual host income of $29,000. This strong performance is further bolstered by lenient local regulations, which have not strictly enforced licensing requirements, allowing for a relatively hassle-free hosting experience. As of September 2024, there are 740 active Airbnb listings, highlighting the market's vitality and growth potential.
Short-Term Rental Regulations in Arlington, Texas for 2024
Definition and Eligibility
- A short-term rental is defined as any residential structure or portion thereof used for lodging accommodations for less than 30 consecutive days. It does not include 'bed and breakfast' establishments as defined by the Unified Development Code.
Permitting Requirements
- Property owners must apply for a permit to operate a short-term rental. The permit application process is available online starting August 1, 2019, and must be renewed annually.
Required Documents
- The application requires a site plan, floor plan, and proof of insurance.
Zoning Districts
- Short-term rentals are allowed in specific zoning districts designated by Ordinance No. 19-014. These include certain residential and other specified areas, but are generally banned across most of the city except in the area surrounding the Entertainment District.
Safety Inspections
- The city conducts physical inspections of the short-term rental for compliance with basic life-safety standards.
Occupancy Limits
- Maximum occupancy is set at 2 per bedroom + 2, limited to a total of 12 occupants.
Parking Requirements
- Parking is limited to the number of available off-street spaces.
Taxes
- A 7% hotel occupancy tax is imposed on short-term rentals.
Property Requirements and Limitations
- Condominiums and Homeowners Associations (HOAs) may impose their own rules regarding short-term rentals, including pre-approval of guests or restrictions on short-term rentals.
Enforcement and Penalties
- Failure to comply with regulations can result in fines: $500 for the first offense of operating without a permit, $1,000 or more for subsequent violations. Other penalties include $300 for breaching occupancy limits (increasing to $600 or more for subsequent offenses) and $400 for disregarding safety regulations (increasing to $800 or higher for repeat violations).
Host Responsibilities
- Hosts must enforce and list the city's regulations on their host rules. They must also manage nuisances such as noise and provide dedicated parking spaces to avoid inconveniencing neighbors.
Complaints and Compliance Checks
- The city has a 24/7 hotline for complaints about the operation of short-term rentals. Regular compliance checks are conducted to ensure hosts are operating within established rules.
Top Neighborhoods Generating Airbnb Revenue in Arlington, Texas
1. Entertainment District
- This area is highly appealing due to its proximity to major attractions such as AT&T Stadium, Globe Life Field, Six Flags Over Texas, and Hurricane Harbor. Guests favor rentals here for the convenience of walking distance to stadiums, entertainment venues, and a variety of restaurants and bars.
2. Downtown Arlington
- Downtown Arlington is popular for its central location, making it easy to access the University of Texas at Arlington, Texas Live, and various local coffee shops and restaurants. The area offers a mix of modern apartments and cozy guesthouses, all within walking distance to key local spots.
3. North Arlington
- Known for its natural beauty, luxury homes, and scenic views of Lake Viridian, North Arlington attracts guests seeking a more exclusive and elegant stay. The area's golf courses and high-end amenities make it a favorite among those looking for a luxurious vacation experience.
4. Uptown/University Area
- This neighborhood is favored for its proximity to the University of Texas at Arlington and the vibrant atmosphere around the campus. Guests appreciate the modern amenities, fully equipped kitchens, and the convenience of being close to local eateries and entertainment options.
5. Cooper Street Area
- Located near the UTA campus, this area is popular for its restaurants, stores, museums, and parks. Guests enjoy the western-themed homes and the short drive to major attractions like Six Flags, Hurricane Harbor, and the AT&T and Globe Life stadiums.
Why These Neighborhoods Are Appealing
- Proximity to Major Attractions: Many of these neighborhoods offer walking distance or short drives to significant entertainment and sports venues, making them ideal for event-goers and families.
- Amenities and Services: Rentals in these areas often come with fully equipped kitchens, pools, hot tubs, and other luxury amenities that enhance the guest experience.
- Central Location: Being centrally located allows guests easy access to a variety of dining, shopping, and entertainment options.
- Variety of Accommodations: From modern condos to cozy guesthouses and luxurious homes, these neighborhoods offer a diverse range of accommodations to suit different preferences and group sizes.
- Safety and Convenience: Many rentals in these areas are located in secure, gated communities or have additional safety features, providing guests with a sense of security and convenience.
Tips for Furnishing and Designing an Inviting Airbnb in Arlington, Texas
Choose Furniture that Reflects Arlington's Style
- Opt for a mix of contemporary and rustic elements to align with Arlington's vibrant culture and youthful spirit. Incorporate modern aesthetics with neutral palettes and pops of color to attract a wide variety of guests.
Select Easy-to-Clean and Maintain Furniture
- Prioritize furniture that is easy to clean and maintain. For example, choose leather or wipeable upholstered dining chairs, and consider using ScotchGuard on fabrics. Wooden chairs and headboards are also easier to clean.
Ensure Functionality and Practicality
- Each piece of furniture should serve a purpose and be useful. Avoid unnecessary decor and focus on items like cabinets under TVs for storage, and small accent tables instead of nightstands to maximize space.
Measure and Optimize Your Space
- Measure your rooms carefully to ensure the best layout. Avoid blocking natural light sources and ensure there is ample space to move around. Use space-saving furniture like sofa beds, folding tables, and ottomans with hidden storage.
Incorporate Local Touches
- Add local flavor to your design by incorporating local artworks or themed decor that represents Texas culture. This can enhance the unique character of your Airbnb and make it more appealing to guests.
Focus on Comfort and Durability
- Choose sturdy, comfortable furniture that can withstand wear and tear. Opt for solid wood over particle board, and select beds with drawers or storage beds for extra space. Memory foam mattresses are more durable and easier to replace than spring mattresses.
Enhance with Mirrors and Lighting
- Use mirrors to make your space feel bigger and brighter. Ensure good lighting and easy access to power outlets. Consider adding a desk lamp and other lighting fixtures to create a cozy ambiance.
Provide Essential Amenities
- Equip your kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Include basic cookware, utensils, and dinnerware. High-speed internet and a Wi-Fi booster (if necessary) are crucial for business travelers and digital nomads.
Ensure Safety and Accessibility
- Mount TVs and secure large mirrors to the wall for safety. Consider making your Airbnb accessible to guests with disabilities by adding features like ramps, wide doorways, and grab bars in bathrooms.
Use Smart Storage Solutions
- Implement smart storage solutions such as beds with drawers, wall hooks for coats, pegboards in the kitchen, and stackable containers. This helps keep the space tidy and organized.
Update During Off-Season
- Plan furniture updates during the off-season or short gaps between bookings to minimize disruption to your guests. This ensures your property remains in top shape for guests.
Discover Arlington, Texas: Top Attractions and Insider Tips
Local Attractions
Sports and Entertainment
- AT&T Stadium: Home of the Dallas Cowboys, offering guided tours and state-of-the-art facilities. Include the 60-yard High-Definition scoreboard as a must-see.
- Globe Life Field: Home of the Texas Rangers baseball team, with tours and games available.
- Choctaw Stadium: A versatile stadium hosting various events and sports.
Theme Parks
- Six Flags Over Texas: A large amusement park with thrilling roller coasters, water rides, and family-friendly attractions.
- Six Flags Hurricane Harbor: A water park with slides, pools, and other water attractions, open from May through September.
Arts and Culture
- Arlington Museum of Art: A non-collecting museum showcasing rotating exhibits of paintings, illustrations, sculptures, and other works by leading artists.
- Arlington Music Hall: Hosts a variety of music performances, including classic symphonies, jazz, and country music.
- Levitt Pavilion: An open-air concert venue offering free summer concerts with a diverse range of music genres.
Outdoor Activities
- River Legacy Park: A 1,300-acre park featuring hiking, biking, wildlife watching, and picnic areas along the Trinity River.
- Crystal Canyon Natural Area: Another beautiful park for hiking and outdoor activities.
Shopping and Dining
- Arlington Highlands: An upscale outdoor shopping and entertainment complex with over 50 stores, 250 restaurants, a movie theater, and an improv comedy club.
- Lincoln Square Shopping Center: A premier shopping, dining, and entertainment destination near AT&T Stadium and Six Flags Hurricane Harbor.
Other Attractions
- International Bowling Museum and Hall of Fame: A museum dedicated to the history and evolution of bowling.
- Arlington Improvisation Comedy Theater and Restaurant: A renowned comedy club that has hosted many famous comedians, suitable for guests above 21 years old.
- Texas Live: An entertainment complex including the Live by Loews upscale hotel resort and various dining and entertainment options.
Insider Tips
Getting Around
- Arlington is centrally located between Dallas and Fort Worth, making it easily accessible by car or public transportation. Mention the proximity to DFW International Airport, just 15 minutes away.
Free Activities
- Recommend the free summer concerts at the Levitt Pavilion and the public Entertainment District Art Trail for budget-friendly options.
Family-Friendly
- Suggest Six Flags Over Texas and Six Flags Hurricane Harbor for families with kids, along with the University of Texas at Arlington’s Planetarium and K1 Speed race course.
Nightlife
- Point out the vibrant nightlife at Arlington Highlands, Lincoln Square, and the Arlington Improvisation Comedy Theater and Restaurant for evening entertainment.
Upcoming Attractions
- Inform guests about upcoming attractions like the National Medal of Honor Museum, Loews Arlington Hotel & Convention Center, and One Rangers Way, set to open in 2024.
By providing these attractions and insider tips, your guests will have a comprehensive guide to enjoying all that Arlington, Texas, has to offer.
Practical Tips to Run a Successful Short Term Rental Business in Arlington, Texas
To ensure a successful and compliant short-term rental business in Arlington, Texas, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform your guests about quiet hours and noise regulations to avoid violations. Include this information in both digital and physical house manuals to ensure clarity. Arlington has strict regulations, and failure to comply can result in fines and permit revocation.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should also outline the city's regulations, such as occupancy limits and safety guidelines, to keep guests informed and compliant.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, and consider sending a welcome message with all the necessary details before their arrival.
Parking Instructions
Include detailed parking instructions with photos in your house manual to avoid confusion. This is particularly important in areas with limited parking or specific parking regulations, helping to prevent guest frustration and potential violations.
By following these tips, you can enhance the guest experience, ensure compliance with Arlington's regulations, and maintain a positive reputation for your short-term rental business.
Here is a brief list of house cleaning providers in Arlington, Texas:
House Cleaning Services in Arlington, TX
The Cleaning Authority
- Provides detailed cleaning services using the Detail-Clean Rotation System
- Serves Arlington, Mansfield, Burleson, Grand Prairie, Midlothian, Cedar Hill, and surrounding areas
- Fully bonded and insured, uses environmentally responsible cleaning products.
The Maids
- Focuses on healthy cleaning, removing dust, germs, and airborne pollutants
- Offers a 22-Step Cleaning Process and a 100% satisfaction guarantee
- Services include one-time, recurring, move-in/out, and special cleaning services
- Serves Arlington, Cedar Hill, Mansfield, and Grand Prairie.
Love My Maids
- Provides residential house cleaning services with a 100% guarantee
- Offers recurring, move-in/out, and one-time cleaning services
- Uses professional cleaning products and equipment
- Serves Arlington, Fort Worth, and surrounding areas.
The Pampered House Maid Service
- Trained maids with an eye for detail, many with over 9 years of experience
- Bonded and insured for client protection
- Offers various specials and referrals rewards
- Serves Tarrant County since 2001.
Short-Term Rental Management Fees in Arlington, Texas: A Guide to Costs and Services
In Arlington, Texas, managing a short-term rental can incur management fees that typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as Square House and RedAwning, offer comprehensive services including guest communication, marketing, and maintenance, and these services usually fall on the higher end of the fee spectrum, often between 20% to 30% of the rental income.
Basic services, which might include only listing management or guest hosting, can be less expensive but still significant. Additional fees may apply for specific services like cleaning, repairs, and design, further impacting the overall cost. Property owners should consider these fees when calculating their potential profits and choosing a management company that aligns with their needs and budget.