The short-term rental market in Dauphin Island, Alabama, is thriving, characterized by high occupancy rates, strong revenue growth, and a steady demand for well-managed, high-quality properties, especially during the peak season and bolstered by popular local events throughout the year.
Thriving Short-Term Rentals in Dauphin Island, Alabama
Dauphin Island, Alabama, is experiencing a robust performance in its short-term rental market, driven by its appealing beach town ambiance and rich historical significance. The island's peak season, which spans from late spring through the summer, sees substantial demand for short-term rentals, resulting in higher occupancy rates and rental prices. On average, short-term rentals in Dauphin Island achieve a 59% occupancy rate, with an average daily rate of $342 and a monthly revenue of $52,992.
Despite the seasonal fluctuations, the island's mild winter climate and popular events like the Christmas Boat Parade and Mardi Gras Parade ensure a steady stream of visitors year-round. This consistent demand underscores the viability and attractiveness of investing in high-quality, well-managed Airbnb properties on the island, making Dauphin Island an excellent destination for both tourists and property investors.
Short-Term Rental Regulations in Dauphin Island, Alabama for 2024
Licensing and Fees
- An annual Business License is required for each rental property, whether managed by the owner or an agent. The 2024 license fee is $135 for annual gross receipts under $50,000, with varying fees for higher gross receipts.
Minimum Nightly Stays
- Different Short-Term Rental Overlay Districts (STROD) have specific minimum stay requirements:
- STROD1 and STROD2: minimum three (3) night consecutive days
- STROD3: minimum two (2) night consecutive days.
Safety Inspections
- Safety Inspections are required for all Short & Long-Term Rental Properties, to be performed once every three years starting from January 1, 2023. A copy of the executed Safety Inspection Checklist must be submitted to the Building Inspection Department.
Required Documentation and Information
- Property owners must submit a rental business license application, which includes:
- Deed or property tax statement
- If applicable, a copy of the agreement between the property owner and the property management company, along with a letter authorizing the agent
- Safety Inspections and Hold Harmless agreements
- Parking plan and Floor plan drawings (can be hand drawn).
Posting Requirements
- The following information must be posted in a highly visible location within each rental property:
- Emergency contact information (911, local owner/agent contact)
- Maximum occupancy and vehicle parking limits
- Local Fire and Police phone numbers
- Dauphin Island “Good Neighbor Policy”
- Trash collection times and return of empty cans
- Rip Current Information.
Proposed Zoning Restrictions
- A proposed plan to ban short-term rentals (less than six months) on the east end of the island, restricting them to the west end. This proposal is still in the early stages and subject to approval by the planning commission and town council.
Tax Compliance
- Property owners must pay state and local lodging taxes. For Dauphin Island, the lodging tax rates include:
- Town of Dauphin Island: 7%
- State of Alabama: 4%
- Mobile County: 2%.
Compliance and Enforcement
- A complaint hotline is available 24/7 for reporting any issues related to short-term rentals. Property owners must ensure compliance with property maintenance codes, building safety codes, and zoning ordinances to avoid fines and penalties.
Top Neighborhoods for Airbnb Revenue in Dauphin Island, Alabama
1. Central Dauphin Island
- Appeal: Central Dauphin Island is highly appealing due to its proximity to the beach, easy access to kayaking and biking, and a variety of amenities. Properties like "The Getaway" and "Upscale w/ gulf view, close to beach, all you need" are highly rated for their location, cleanliness, and nostalgic charm.
- Features: Mid Century remodeled homes, large bedrooms, open kitchen/living areas, and direct access to beach activities.
2. Gulfside Dauphin Island
- Appeal: This area is popular for its stunning Gulf views, modern beach decor, and spacious floor plans. Homes such as "Relaxing beach escape with pools" and "Perfectly Peaceful-Beach Access-Beach & Bay Views" are favorites among guests.
- Features: Gulfside homes with pools, easy beach access, and amenities like fully equipped kitchens and large porches for sunset views.
3. West End of Dauphin Island
- Appeal: The west end is attractive for its more secluded and peaceful atmosphere while still offering gulfside living. Properties like "Sun of a Beach- gulfside on west end of DI- Pool" provide a tranquil getaway with pool amenities.
- Features: Secluded gulfside homes, pools, and a more relaxed environment.
4. Beachfront Areas
- Appeal: Beachfront rentals are highly sought after for their direct access to the beach and unparalleled Gulf views. Homes such as those listed under "Beachfront home rentals with a pool" are highly rated for their location and cleanliness.
- Features: Direct beach access, pools, and modern amenities like indoor and outdoor hot tubs.
Why These Neighborhoods Are Appealing
- Location: Proximity to the beach, easy access to water activities, and scenic views.
- Cleanliness and Maintenance: High ratings for cleanliness and well-maintained properties.
- Amenities: Pools, fully equipped kitchens, large porches, and modern decor.
- Family and Pet-Friendly: Many properties are suitable for families and allow pets, making them versatile for various types of guests.
- Historical and Modern Charm: A mix of remodeled historic homes and modern beach houses caters to different tastes and preferences.
Furnishing and Design Tips for an Airbnb in Dauphin Island, Alabama
To create an inviting and authentic Airbnb space in Dauphin Island, Alabama, consider the following tips that reflect the island's unique style and charm:
Embrace Coastal Colors and Textures
- Use a palette of soft blues, whites, and sandy neutrals to evoke the feeling of the Gulf Coast.
- Incorporate natural textures such as wicker, rattan, and driftwood to add warmth and a coastal vibe.
Highlight Local Art and History
- Decorate with local artwork, photographs, and historical pieces that showcase Dauphin Island's rich history and marine life.
- Include maps, prints, or paintings of the island's landmarks like Fort Gaines and the Audubon Bird Sanctuary.
Opt for Light and Airy Interiors
- Choose light-colored curtains and blinds to allow natural light to flood the space, reflecting the island's sunny and airy atmosphere.
- Use open shelving and minimal clutter to maintain a sense of spaciousness.
Incorporate Nautical Elements
- Add nautical touches such as anchors, ropes, and shells to create a coastal ambiance.
- Use navy blues and whites in bedding, towels, and other linens to reinforce the nautical theme.
Utilize Outdoor Spaces
- Ensure outdoor areas are well-furnished with comfortable seating, hammocks, or swings to take advantage of the island's beautiful sunsets.
- Add outdoor lighting that complements the natural surroundings and enhances the evening ambiance.
Focus on Comfort and Relaxation
- Provide plush, comfortable furniture that invites relaxation, such as oversized sofas and hammocks.
- Include amenities like beach towels, sunscreen, and beach chairs to make guests feel at home.
Celebrate the Island's Wildlife
- Decorate with elements that reflect the island's abundant wildlife, such as bird-themed decor or marine life-inspired artwork.
- Offer binoculars for bird watching and guides to the local wildlife.
Maintain a Laid-Back Atmosphere
- Avoid overly formal or luxurious decor; instead, opt for a laid-back, beachy style that aligns with the island's relaxed vibe.
- Incorporate elements like vintage beach signs, fishing nets, and other coastal ephemera to enhance the casual atmosphere.
Ensure Practicality for Outdoor Activities
- Provide storage for guests' outdoor gear such as bicycles, kayaks, or paddleboards.
- Offer amenities like coolers, beach bags, and water bottles to facilitate outdoor activities.
By following these tips, you can create an Airbnb space that not only reflects the unique charm of Dauphin Island but also provides a welcoming and comfortable environment for your guests.
Discover Dauphin Island: Local Attractions and Insider Tips
Local Attractions
Historic Fort Gaines
- Located on the eastern end of the island, this historic site played a crucial role in the Battle of Mobile Bay during the Civil War.
- Take a guided or self-guided tour to explore the well-preserved ramparts, cannons, and tunnels.
- Tip: Bring a camera to capture the panoramic views from the top of the fort.
Dauphin Island Sea Lab and Estuarium
- Alabama’s primary marine education and research center, featuring exhibits on the Mobile Tensaw River Delta, Mobile Bay, and other coastal ecosystems.
- The adjacent Estuarium is a public aquarium with over 100 species of marine life across 31 aquariums, including touch tanks and a Living Marsh Boardwalk.
- Tip: Visit early in the day to avoid crowds and maximize your time exploring all the exhibits.
Audubon Bird Sanctuary
- A 164-acre sanctuary consisting of maritime forest, marshes, and dunes, listed among the ten most globally significant sites for bird migrations.
- Enjoy easy trails that are also bike-friendly and keep an eye out for turtles and alligators.
- Tip: Pack snacks and water for your visit.
Dauphin Island Public Beach and West End Beach
- Relax on sugar white sand beaches, with amenities like parking, restrooms, and food vendors.
- Dauphin Island Public Beach is pet-friendly.
- Tip: Pay $10 for parking to access all three beaches (Public Beach, West End Beach, and East End Beach) for the day.
Dauphin Island Marina
- A full-service marina offering fishing and boating supplies, restrooms with showers, and dining options.
- Rent boats, kayaks, or stand-up paddleboards to explore the island’s waters and spot wildlife like dolphins.
- Tip: Book fishing charters in advance, especially during summer months.
Indian Shell Mound Park
- Explore historic shell mounds and enjoy scenic views.
- Tip: Combine this visit with other nearby attractions for a full day of exploration.
Island Golf and Parks
- Enjoy public golf courses and parks with ancient oaks.
- Use the seven-mile-long bicycle/jogging trail for a scenic ride or jog.
Insider Tips
Getting There
- Access the island via the Mobile Bay Ferry or Dauphin Island Parkway for a scenic and enjoyable journey.
Outdoor Activities
- Engage in activities like beach-combing, swimming, fishing, shelling, kayaking, paddle boarding, crabbing, and surfing.
- Take advantage of the island’s incredible fishing opportunities with local charters or boat rentals.
Local Events
- Check out seasonal events like the Summer Movie Series and other local activities that enhance your stay.
Evening Activities
- Many rentals come with gas or charcoal grills; enjoy grilling and family activities like night crabbing or board games.
- All rentals typically have Wi-Fi Internet and either Cable or Satellite TV.
Nature and Wildlife
- Keep an eye out for diverse wildlife, including dolphins, turtles, and alligators, especially in the Audubon Bird Sanctuary and during water activities.
By sharing these attractions and tips with your guests, you can help them make the most of their visit to Dauphin Island and ensure a memorable stay.
Practical Tips to Run a Successful Short Term Rental Business in Dauphin Island, Alabama
To ensure a smooth and profitable short-term rental business in Dauphin Island, Alabama, several key practices can be implemented:
Noise Regulations and Quiet Hours
Inform your guests about the quiet hours and noise regulations in place on the island. This can be done through a clear section in your digital and physical house manual, as well as reminders via welcome messages or notifications.
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 local rules and regulations, such as safety inspections and the "Good Neighbor Policy" mandated by the town.
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, along with photos to help them navigate the premises.
Parking Instructions
Include detailed parking instructions with photos in your house manual to avoid any confusion. This is particularly important given the specific parking regulations and maximum vehicle limits for each rental property.
By adhering to these tips, you can enhance the guest experience, minimize potential issues, and ensure compliance with local regulations, thereby running a successful and stress-free short-term rental business on Dauphin Island.
Here is a brief list of house cleaning, and some related services providers in Dauphin Island, Alabama:
House Cleaning Services
- Maids Ala Mode: Offers exceptional home cleaning services, specializing in beach homes.
- Homeaglow: Provides top-rated, professional, and affordable house cleaning services with background-checked cleaners.
- The Maids: A well-known house cleaning service provider.
- Reliable House Cleaners: Offers reliable house cleaning services.
- Dust Bunnies Cleaning Service: Specializes in house cleaning.
- Fontenot's Cleaning Service LLC: Provides house cleaning services.
Other Related Services
- Port City Carpet Service: While primarily a carpet service, they may also offer related cleaning services.
Note that the list does not include specific repair or maintenance providers, as the sources primarily focus on cleaning services.
Short-Term Rental Management Fees on Dauphin Island, Alabama: A Comprehensive Overview
Managing short-term rentals on Dauphin Island, Alabama, involves a range of fees that can significantly impact the profitability of your property. Typically, management fees for short-term rentals on the island range 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.
In contrast, basic services or more limited management options may incur lower fees, usually around 10% to 15% of the monthly or nightly rent. Additionally, property owners should be prepared for other potential fees, such as charges for cleaning, repairs, and design or remodeling services. Local regulations also require annual business licenses and the collection of lodging taxes, which include a 4% city tax and a 7% state tax, further influencing the overall cost structure. Understanding these fees is crucial for maximizing revenue and ensuring compliance with local regulations.