Airbnb & VRBO Performance in Birmingham Alabama.

Short-Term Rental Regulations in Birmingham, Alabama for 2024

Proposed and Recommended Regulations

Definitions and General Requirements

• Definition of Short-Term Rentals: The new ordinance will define what constitutes a short-term rental.

Safety and Compliance

• Safety Regulations: Short-term rental properties must comply with new safety regulations, including the installation of smoke detectors, carbon monoxide detectors, and fire extinguishers.

Licensing and Permits

• Business License: Short-term rental operators must obtain a general business license from the City of Birmingham.
• Permit Requirement: A permit will be required to operate a short-term rental property.

Zoning Restrictions

• Prohibition in Residential Areas: The Zoning Advisory Committee (ZAC) has recommended prohibiting short-term rentals in all Birmingham residential zone districts.

Owner/Manager Residency

• Residency Requirement: Short-term rental owners or managers must reside within a 10-mile radius of the property.

Guest Information and Security

• Guest Information: Hosts must provide the names of all guests in advance.
• Security Cameras: Security cameras at the property must be accessible through Connect Birmingham.

Neighborhood Association Approval

• Neighborhood Association Permitting Power: Neighborhood associations will have the decision-making power to issue permits for short-term rental properties.

Age and Accountability

• Host Age Requirement: Short-term rental hosts must be at least 25 years old.

Taxation

• Lodging Taxes: Operators must pay lodging taxes of 6.5% plus $3 per room per night to the city, in addition to state and county taxes.

Next Steps

• The ZAC vote is a recommendation to the Birmingham City Council, with additional public hearings and possible changes to the proposal expected before a final vote by the full city council.

Top Neighborhoods for Airbnb Revenue in Birmingham, Alabama

1. Highland Park

• Average Revenue: $45.7K per year
• Average Daily Rate: $216.2 per night
• Average Occupancy Rate: 58%
• Average RevPAR: $123.8

Highland Park is highly appealing due to its central location, picturesque streets, historic homes, and thriving community. The neighborhood offers a unique blend of southern charm and modern amenities, making it convenient for guests with easy access to downtown Birmingham, shops, restaurants, and entertainment options. Its strong sense of community and friendly atmosphere add to its allure.

2. Central City

• Average Revenue: $32.9K per year
• Average Daily Rate: $167 per night
• Average Occupancy Rate: 54%
• Average RevPAR: $89.6

Central City is attractive because of its unbeatable convenience, located in the heart of Birmingham. Guests enjoy easy access to a wide range of amenities, including restaurants, shops, and entertainment venues. The area is well-connected by public transportation, making it easy for visitors to explore without needing a car.

3. Crestwood South

• Average Revenue: $32.4K per year
• Average Daily Rate: $155.9 per night
• Average Occupancy Rate: 57%
• Average RevPAR: $87.4

Crestwood South is appealing due to its family-friendly atmosphere and convenient location. It offers easy access to downtown Birmingham while providing the tranquility of suburban life. The neighborhood has local shops, restaurants, and services along Crestwood Boulevard, catering to the everyday needs of its inhabitants.

4. Woodland

• Average Revenue: $32.1K per year
• Average Daily Rate: $159.5 per night
• Average Occupancy Rate: 55%
• Average RevPAR: $85.3

Woodland is charming with its picturesque tree-lined streets, stunning architecture, and close-knit community. It offers a balance of tranquility and accessibility, being just a short drive from downtown Birmingham. Guests can enjoy the peace and quiet of Woodland while still having easy access to the city's amenities.

5. Downtown Birmingham (including areas like Five Points South and the Entertainment District)

• While specific revenue figures are not provided for these areas, they are highly rated for their central locations, walkability, and proximity to key attractions like Railroad Park, Regions Field, and various restaurants and nightlife spots.
• These areas are appealing due to their luxury lofts, modern amenities, and the ability to walk to nearly everything downtown has to offer. The vibrant and diverse atmosphere, along with the convenience of public transportation, makes them highly attractive to guests.

Tips for Furnishing and Designing an Inviting Airbnb in Birmingham, Alabama

Furniture and Design Considerations

1. Choose Functional and Durable Furniture

• Opt for solid wood over particle board and ensure furniture is easy to clean. For items like sofas, use fabric that is easy to maintain, and consider leather or wipeable surfaces for upholstered pieces.

2. Select a Neutral Color Palette

• Use a neutral color scheme for walls and large furniture pieces to create a relaxed and welcoming atmosphere. This helps guests feel at home without being overwhelmed by bold colors.

3. Ensure Each Area Has a Clear Purpose

• Define functional spaces such as a well-defined reading nook, dining area, or relaxation spot. This enhances the guest’s experience and makes the space feel more organized.

4. Incorporate Local Touches

• Reflect the local culture and history of Birmingham through artwork, decorative items, or a guidebook with local recommendations. This adds a unique and personal touch to your space.

5. Use Smart Technology

• Consider adding smart home features like keyless entry, smart thermostats, or streaming devices to enhance the guest experience and appeal to tech-savvy travelers.

6. Optimize Storage and Minimize Clutter

• Avoid unnecessary decor and furniture. Each piece should serve a purpose and be useful. Use cabinets and storage spaces to keep items like bedding, toys, and extra amenities organized and out of sight.

7. Ensure Safety and Security

• Mount TVs and secure large mirrors to the wall to prevent accidents. Also, equip your property with smoke detectors, carbon monoxide detectors, and fire extinguishers as required by local regulations.

8. Provide Quality Amenities

• Stock up on essential items like toiletries, basic cooking ingredients, and a first aid kit. These small touches can significantly improve guest satisfaction.

9. Use High-Quality Linens and Rugs

• Choose white linens to symbolize cleanliness and ease of washing. For rugs, select heavy-duty materials that can withstand wear and tear.

10. Add Local and Personal Touches with Decor

- Use posters and decorations that reflect the local atmosphere or provide a sense of home. Avoid arbitrary or cheap tourist items and focus on creating a welcoming ambiance.

11. Consider the Size and Scale of Furniture

- Ensure that your main furniture pieces fill the room appropriately. For high ceilings, use taller pieces, and consider using mirrors to fill walls and provide additional space for guests to get ready.

12. Enhance the Ambiance with Lighting and Smell

- Use lighting fixtures that are not too office-like and add scented candles or quality shampoo and soap to create a welcoming scent. Perfume the house before guests arrive to make a good impression.

Discover Birmingham, Alabama: Top Attractions and Insider Tips

Local Attractions

Historical and Cultural Sites

• Birmingham Civil Rights Institute: Learn about the city's significant role in the Civil Rights Movement.
• 16th Street Baptist Church: A historic church that played a crucial role in the Civil Rights Movement.
• Sloss Furnaces National Historic Landmark: Explore the city's industrial heritage at this former iron-producing blast furnace. Admission is free.

Museums and Art

• Birmingham Museum of Art: Enjoy a diverse collection of art from around the world, with free admission.
• Vulcan Park and Museum: See the world's largest cast iron statue and enjoy stunning views of the city. Observation Tower tickets: Adults $6, Seniors $5, Kids $4, Kids (under 5) Free.
• McWane Science Center: Interactive exhibits on science and technology, perfect for families.

Outdoor Activities

• Red Mountain Park: Over 15 miles of trails for hiking, mountain biking, and zip-lining. Free admission.
• Railroad Park: A 19-acre urban oasis with walking trails, playgrounds, and cultural events. Free admission.
• Rotary Trail: A scenic and urban walking trail in downtown Birmingham, great for walking, jogging, or biking. Free admission.
• City Walk Birmingham: An innovative space with walking paths, skate parks, dog parks, and event spaces. Free admission.

Family-Friendly Attractions

• Birmingham Zoo: Home to over 950 animals, including endangered species. Enjoy shows, animal encounters, and a carousel.
• Barber Vintage Motorsports Museum: A unique museum showcasing vintage motorcycles and cars.

Insider Tips

Best Times to Visit

• Spring and Fall: These seasons offer mild weather, making them ideal for outdoor activities.
• Summer: Enjoy various festivals and events, but be prepared for the heat.
• Winter: A good time to explore indoor attractions like museums and the McWane Science Center.

Local Favorites

• Saw’s Soul Kitchen: Known for its Southern comfort food and BBQ.
• The Bright Star: America's oldest continuously operating restaurant, serving seafood and Southern favorites.
• Avondale Brewing Company: A local brewery with a lively atmosphere and live music.

Hidden Gems

• Kelly Ingram Park: A historic park with significant Civil Rights landmarks and public art.
• Pepper Place Saturday Market: A weekly market featuring local produce, crafts, and food.
• Ruffner Mountain Nature Preserve: A nature center with trails and scenic views, perfect for hiking and birdwatching.

Getting Around

• Public Transportation: Use the MAX Transit system for convenient travel around the city.
• Walking and Biking: Many attractions are within walking or biking distance, especially in downtown Birmingham.

By sharing these attractions and tips, you can help your guests make the most of their visit to Birmingham, Alabama.

Practical Tips to Run a Successful Short-Term Rental Business in Birmingham, Alabama

To ensure a smooth and successful short-term rental business in Birmingham, Alabama, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about quiet hours and noise regulations to avoid any potential issues. Include a section in your house manual or welcome message that clearly outlines the noise policies and any applicable quiet hours. This helps in maintaining a good relationship with neighbors and complying with the city's general ordinances regarding noise and nuisances.

Creating a Comprehensive House Manual

Develop both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover safety features like the location of smoke detectors, fire extinguishers, and carbon monoxide detectors. Providing clear instructions helps guests navigate the property easily and reduces the likelihood of misunderstandings.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to use the smart locks, along with parking instructions accompanied by photos. This ensures a seamless arrival experience and minimizes the need for last-minute support calls.

By implementing these strategies, you can enhance guest satisfaction, reduce operational hassles, and maintain compliance with local regulations, ultimately contributing to the success of your short-term rental business in Birmingham, Alabama.

Here is a brief list of house cleaning, repair, and maintenance providers in Birmingham, Alabama:

House Cleaning Services

Complete Steam Carpet Cleaning

• Specializes in carpet cleaning, furniture, rugs, vehicle interior, pet damage, smoke and odor restoration, tile and grout cleaning, upholstery cleaning, and vinyl flooring cleaning and buffing.
• Contact: 205.460.0658.

LifeStyle Organizing Services LLC

• Focuses on home, office, and relocation organization, including paper management.
• Contact: 205.746.2659.

Next Level Cleaning

• Offers detailed cleaning for homes and businesses, including floors, windows, and more.
• Contact: 205.234.9271.

The Cleaning Authority

• Provides apartment and house cleaning, sanitizing, move-in/move-out cleaning, and one-time cleans. Uses eco-friendly products and has fully bonded and insured professionals.
• Contact: 205.530.6223.

ToDo4U Organization Specialist

• Offers home organization, downsizing, and basic organization services.
• Contact: 205.451.3504.

Two Maids

• Provides comprehensive home cleaning services, including one-time and recurring cleans. Supplies all cleaning materials and has fully trained, bonded, and insured staff.
• Contact: Available through their website.

Lemon and Love Cleaning Club

• Offers various cleaning packages, including basic, deep, and move-in/out packages. Services include trash disposal, appliance detailing, and more.
• Contact: Available through their website.

MaidPro Birmingham

• Provides a 49-Point Checklist™ for cleaning, including floor care, dusting, and flexible scheduling options. Offers customizable, no-contract plans.
• Contact: Available through their website.

Additional Resources

For more options, you can also refer to the list of 91 house cleaning services in Birmingham, AL, available on Care.com.

Birmingham, Alabama Short-Term Rental Management Fees: A Comprehensive Guide

In Birmingham, Alabama, 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, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the rental income. This comprehensive approach ensures that all aspects of the rental property are professionally managed, optimizing both the property's performance and resident satisfaction.

On the other hand, basic services that may only include rent collection and minimal oversight can cost less, usually falling within the 10% to 15% range. Additionally, property owners may encounter extra fees for services such as cleaning, repairs, or design enhancements, which can be charged separately or included in the overall management fee. Understanding these fee structures is crucial for property owners to make informed decisions and ensure their investment remains profitable.