Burlington, Vermont, continues to thrive as a lucrative market for short-term rentals, despite new regulations, with a strong demand driven by its vibrant tourism industry, cultural attractions, and scenic location near Lake Champlain.
Thriving Short-Term Rental Market in Burlington, Vermont
Burlington, Vermont, continues to excel as a lucrative destination for short-term rental investors. Despite new regulations aimed at managing the market, the city's vibrant tourism industry and attractive amenities ensure a strong demand. With approximately 240 active short-term rentals, Burlington benefits from its scenic location on Lake Champlain and a rich cultural scene, including events like the Burlington Discover Jazz Festival and the Vermont City Marathon. While specific occupancy rates for 2024 are not available, the average daily rates for short-term rentals in Burlington remain robust, with some listings averaging around $375 per night. This, combined with the city's dynamic economy and educational institutions like the University of Vermont, makes Burlington an appealing and profitable market for short-term rental investments.
Short-Term Rental Regulations in Burlington, Vermont for 2024
Registration and Residency Requirements
- Short-term rental operators must register their rentals with the city’s housing division by April 1 of every year. For new registrations, the deadline was September 1, 2022, for existing rentals.
- In most cases, the host must live at the property where the short-term rental is operated. Exceptions include seasonal homes and buildings with affordable housing units above the required amount.
Location and Unit Limits
- Short-term rentals are allowed anywhere that residential uses are permitted.
- A host can only register one short-term rental. Multiple corporations or entities cannot be used to register more than one short-term rental.
Taxation
- Operators must collect and remit the state 9% Rooms Tax, any applicable local option tax (1%), and a new 3% surcharge effective August 1, 2024. This surcharge goes to the state Education Fund.
- Taxes must be remitted on a monthly basis.
Enforcement and Compliance
- Enforcement measures include housing orders, municipal ticket fines, and court actions. The city will partner with a third-party service to track all short-term rentals.
- Existing short-term rentals that do not comply with the regulations may continue to operate until May 31, 2023, provided they register and meet specific conditions.
Safety and Health Standards
- Short-term rentals must adhere to state fire safety and life safety codes, including the installation of operable emergency exit windows and functional smoke and carbon monoxide alarms.
Additional Requirements
- Hosts must post required information within the rental units, including contact details for maintenance and contact information for the Department of Health and the Department of Public Safety's Division of Fire Safety.
- If constructing or converting a property, zoning and trades permits are likely needed and can be applied for online.
Local Specifics
- Burlington has specific local regulations, including the requirement for hosts to reside at the property they rent out, with some exceptions. Airbnb and Vrbo may collect some taxes on behalf of the hosts, but hosts are still responsible for ensuring all taxes are remitted.
Top Neighborhoods for Airbnb Revenue in Burlington, Vermont
1. Downtown Burlington
Downtown Burlington is a highly sought-after area due to its central location and proximity to key attractions. Guests can walk to Church Street, a vibrant area filled with shops, restaurants, and entertainment. Properties like the "Historic Carriage House in Heart of Downtown" and the "Church St. Loft" offer modern amenities within historic settings, making them extremely appealing.
2. South End Arts District
The South End Arts District is a favorite among guests due to its eclectic mix of art galleries, innovative businesses, and local breweries. This area provides a residential feel while being close to downtown. The "Funky downtown house in South End Arts District" can accommodate larger groups and offers a unique, colorful atmosphere.
3. Old North End
The Old North End is another popular neighborhood, known for its cozy and urban charm. It is within walking distance to Church Street and features local amenities like markets, yoga studios, and coffee shops. The "Cozy 'Urban' Cottage" in this area is highly rated for its natural light, comfortable amenities, and community feel.
4. Winooski (adjacent to Burlington)
Although not directly in Burlington, Winooski is a nearby neighborhood that offers a charming alternative. It has a quaint downtown area with shops, bars, and restaurants, and is just a short drive from Burlington. Properties like the "Deluxe Cute Apt | 1min Walk Restaurants + Shops" and the "Bohemian Penthouse" are popular for their convenience and scenic river views.
Why These Neighborhoods Are Appealing
- Central Location: Downtown Burlington and the South End Arts District offer easy access to major attractions, making them ideal for guests who want to explore the city.
- Local Charm: The Old North End and Winooski provide a residential and community-oriented experience, with local amenities and a more laid-back atmosphere.
- Amenities and Activities: All these neighborhoods are close to Lake Champlain, bike paths, and various cultural and recreational activities, enhancing the overall guest experience.
- Variety of Accommodations: From historic carriage houses to modern lofts and cozy cottages, these neighborhoods offer a diverse range of Airbnb options to suit different preferences and group sizes.
Furnishing and Design Tips for an Inviting Airbnb in Burlington, Vermont
Tip #1: Choose Furniture that Reflects Local Style
- Opt for rustic and cozy decor styles that resonate with Burlington's natural beauty and New England charm. Incorporate elements like reclaimed wood furniture and warm color palettes to create a welcoming atmosphere.
Tip #2: Utilize Smart Storage Solutions
- Incorporate storage beds, wall hooks, pegboards in the kitchen, and stackable containers to keep the space tidy and functional. This helps in maintaining a clutter-free environment and provides guests with designated spots for their personal items.
Tip #3: Select Durable and Easy-to-Clean Furniture
- Choose furniture that is sturdy and easy to maintain, such as sofas with washable covers and dining tables that are resistant to wear and tear. This ensures the space remains clean and inviting for all guests.
Tip #4: Enhance Natural Light and Space
- Measure the rooms carefully and arrange furniture to maximize natural light and movement. Avoid blocking light sources and ensure there is ample space for guests to move around comfortably.
Tip #5: Incorporate Local and Seasonal Elements
- Reflect the local environment by adding nautical elements or lake-themed accents, given Burlington's proximity to Lake Champlain. Seasonal decorations can also enhance the appeal, especially during events like fall foliage or winter festivals.
Tip #6: Provide Essential Amenities
- Equip your Airbnb with essentials like a fully equipped kitchen, a coffee maker, microwave, toaster, and kettle. Additional amenities such as hairdryers, basic toiletries, and a first-aid kit can make a significant difference in guest satisfaction.
Tip #7: Ensure Accessibility and Comfort
- Make your Airbnb accessible to guests with disabilities by incorporating features like ramps, wide doorways, and grab bars in bathrooms. High-quality, durable towels and comfortable, lightweight chairs can also enhance the comfort level.
Tip #8: Use Mirrors to Create a Bigger and Brighter Space
- Utilize mirrors strategically to make the space feel larger and brighter. A full-length mirror is a must for guests getting ready, and it can also add a touch of style to the room.
Tip #9: Plan Updates During Off-Peak Seasons
- Schedule furniture updates during the off-season or short gaps between bookings to minimize disruption and keep the place in top shape for guests.
Tip #10: Create a Welcoming Atmosphere
- Add plants, cozy fireplaces, and outdoor spaces for relaxation to create a welcoming and inviting atmosphere. These elements can significantly enhance the appeal of your Airbnb and lead to positive reviews and repeat bookings.
Exploring Burlington, Vermont: Local Attractions and Insider Tips
Top Local Attractions
Church Street Marketplace
- An outdoor pedestrian mall with over 100 shops and restaurants, named the No. 1 Public Square in America in 2022 by USA Today. Enjoy shopping, dining, and cultural experiences, along with live music and street performers.
Burlington's Waterfront Park
- A scenic park offering walking, biking, and running paths along Lake Champlain. It hosts various festivals, including the July 3rd Fireworks display and the Vermont Brewers’ Festival. Take in the stunning views of Lake Champlain and the Adirondack Mountains.
Shelburne Museum
- Located approximately 8 miles south of Burlington, this museum features over 150,000 exhibited works across 39 historic buildings. It includes American and Impressionist art, textiles, folk art, and more.
Echo Leahy Center for Lake Champlain
- A family-friendly museum that showcases the natural history and ecosystem of Lake Champlain. Perfect for learning about the local environment and its conservation efforts.
The Flynn
- Burlington’s historic theater, established in 1930, offering a variety of performances including vaudeville and motion pictures. Check out the current show schedule for a unique entertainment experience.
Burlington Bike Path
- A popular path for cycling, walking, or wheelchair use that parallels Lake Champlain. It connects to a bike ferry to South Hero and offers scenic views of the lake and surrounding mountains.
Oakledge Park
- Features two beach areas, shelters, a playground, and a unique wheelchair-accessible treehouse. Explore the massive ledge rock jutting into the lake and enjoy the earth clock and pavilion spaces.
Spirit of Ethan Allen Cruises
- Take a dinner cruise or evening event to see Burlington from the water. Enjoy stunning views of Lake Champlain and the Adirondack Mountains.
Insider Tips
Picnic at Ethan Allen Tower
- Located in Ethan Allen Park, this tower offers panoramic views of Burlington, Lake Champlain, and the Adirondacks. It's a perfect spot for a picnic and sunset viewing.
Visit Church Street for Local Treats
- Try a $5 shake made with local oatmeal stout, espresso, and maple syrup at Radio Bean, or grab a spicy Aztec hot chocolate from Lake Champlain Chocolates. Enjoy the holiday lights during winter.
Explore Local Markets
- Visit the Burlington Farmers’ Market, held every other Saturday during winter and every Saturday during the warmer months, to sample local produce, artisanal cheeses, and specialty foods.
Discover Hidden Gems
- Check out the tallest filing cabinet in the world, a quirky local landmark symbolizing the long-standing Champlain Parkway project. Also, visit the unique spaces at Oakledge Park, including the treehouse and ledge rock.
Enjoy Local Wine
- Head to Snow Farm Vineyard on South Hero, just 20 minutes north of Burlington, for a glass of wine with views of the lake and surrounding islands.
Experience Local Culture
- Attend the Burlington Discover Jazz Festival in June, which features citywide jazz performances and jam sessions. This event celebrates 40 years of outdoor jazz in Burlington.
Practical Tips to Run a Successful Short-Term Rental Business in Burlington, Vermont
To ensure a smooth and enjoyable experience for both hosts and guests in Burlington, Vermont, several practical tips can be implemented:
Noise Regulations and Quiet Hours
Inform your guests about the local noise regulations and quiet hours to avoid any potential issues. Include a section in your house manual or welcome message that clearly outlines the quiet hours and the importance of respecting the neighborhood.
Comprehensive House Manual
Create 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 house rules, including noise regulations, to ensure guests are well-informed.
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 use the smart locks and include parking instructions accompanied by photos to help them navigate the property easily.
By implementing these strategies, you can enhance guest satisfaction, reduce potential conflicts, and maintain a positive reputation for your short-term rental business in Burlington, Vermont.
Here is a brief list of house cleaning providers in Burlington, Vermont:
House Cleaning Services
Michelle Nolan's Cleaning Service
- Provides house cleaning, condo cleaning, apartment cleaning, and home organization services in the Burlington area and surrounding counties.
The Maids
- Offers healthy house cleaning services, including a 22-Step Cleaning Process, in Burlington and nearby towns like Williston, Waterbury, and Montpelier. Services include recurring cleaning, spring and fall cleaning, and move-in/move-out cleaning.
Lime Maids
- Connects clients with trusted, eco-friendly cleaners in Vermont. Services include standard, deep, and move-in/move-out cleanings, with a focus on sustainability and quality assurance.
Additional Resources
Care.com
- Lists multiple house cleaning services in Burlington, VT, allowing users to compare rates, reviews, and experience of various providers.
Angie's List
- Provides a list of top-rated house cleaners in Burlington, including locally owned companies like Vermont Keep It Clean, along with guidelines for hiring and evaluating house cleaners.
Managing Short-Term Rentals in Burlington, Vermont: Fees and Services
In Burlington, Vermont, managing short-term rentals involves a range of fees and services that can vary significantly depending on the level of management required. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, typically ranges from 20% to 30% of the rental revenue. This higher-end service ensures that all aspects of the rental property are handled professionally, from daily pricing adjustments and promotions to ensuring compliance with local regulations, such as registration, licensing, and health and safety standards.
Basic services, on the other hand, may incur lower fees, often around 10% to 20% of the rental revenue. Additionally, hosts may need to account for other fees, including cleaning fees, repair costs, and any design or improvement expenses. The new 3% short-term rental surcharge and the existing 9% rooms and meals tax, along with any local option taxes, also need to be factored into the overall cost structure.