Daytona Beach, Florida, is thriving as a lucrative short-term rental market, characterized by high occupancy rates of around 56-60%, average daily rates of $148-$242, and significant annual revenues of $28K-$53K, making it an attractive and profitable destination for Airbnb investors.
Thriving Short-Term Rental Market in Daytona Beach, Florida
Daytona Beach, Florida, is experiencing a robust and lucrative short-term rental market, making it an attractive destination for investors. The city boasts an impressive average occupancy rate of around 60%, which surges to 73% in March, driven by major events like the Daytona 500 and spring break vacations.
The average daily rate (ADR) is equally promising, standing at $242.5, with peak rates reaching $267.3 in March. This strong pricing power, combined with high occupancy rates, translates to significant revenue potential, with average annual revenues for short-term rentals hovering around $53,300. The market's financial viability is further underscored by maximum monthly revenues of up to $4,700 in March and $4,600 in July.
Overall, Daytona Beach's dynamic short-term rental market, supported by its year-round tourist appeal and diverse range of rental options, presents a compelling investment opportunity for those looking to capitalize on the city's thriving travel industry.
Short-Term Rental Regulations in Daytona Beach, Florida for 2024
Zoning and Location Restrictions
- Short-term rentals are not permitted in areas designated for residential use.
- These rentals are allowed in select locations, including certain major thoroughfares where hotels and motels typically operate, as well as specified regions along the beachfront, downtown, and Midtown areas.
- Permitted locations are divided into four designated tourist zoning districts and thirteen redevelopment area zoning districts.
Licensing and Registration
- Hosts must obtain a city-issued occupational license to conduct any business within the city.
- Registration with the Florida Department of Business and Professional Regulations (DBPR) is mandatory for all transient rental types.
- All businesses in Daytona Beach must possess a valid Business Tax Receipt, which is subject to annual renewal by September 30.
Tax Obligations
- Property owners must register for the Tourist Development Tax (also known as the "bed tax" or "resort tax"), a 6% tax on the total rental amount for stays of six months or less.
- Hosts are responsible for collecting the tax from guests and remitting it to the state on a monthly basis.
Building and Housing Standards
- Vacation rentals fall under the category of ‘Other Accommodations’ and must adhere to specific standards, especially regarding accessory uses.
- No more than 20% of the gross floor area may be devoted to accessory uses, which should primarily serve short-term rental guests and be located within the principal building without external advertising.
- If the accessory use includes the sale of alcoholic beverages, it must comply with Section 6.20 on Alcoholic Beverages.
Compliance with City Ordinances
- Hosts must comply with city zoning laws and adhere to noise and nuisance regulations.
- Properties must be registered and pay a tourist tax.
Inspection and Enforcement
- Annual re-inspection fees are required for licensed rental properties.
- The city can suspend registrations for major violations and charge fees for inspections.
Insurance and Liability
- Hosts should consider obtaining comprehensive insurance coverage to protect against property damage, accidents, and liability claims, as standard homeowners’ insurance may not cover issues arising from commercial rental activities.
HOA and Community Association Rules
- For hosts in communities governed by Homeowners Associations (HOAs) or community associations, understanding and complying with additional rules and restrictions is vital.
State-Level Regulations
- Florida law requires anyone renting out a property for periods of less than 30 days and more than three times per year to obtain a Vacation Rental Dwelling License from the DBPR, involving an initial $150 fee and a $300 renewal fee annually.
Top Airbnb Revenue-Generating Neighborhoods in Daytona Beach, Florida
1. New Smyrna Beach
- Appeal: Known for its exceptional surfing conditions and charming small beach-town atmosphere, New Smyrna Beach offers quieter and more affordable options with excellent restaurants, shops, and live music venues. Its beaches are often rated better than those in Daytona Beach itself, making it a favorite among beach lovers.
2. Daytona Beach Shores
- Appeal: Located close to the city center but far enough to avoid the crowds, Daytona Beach Shores offers a serene beach experience. Guests can enjoy luxurious beachfront condos with amenities like private gyms, pools, hot tubs, and tennis courts. The area is also known for its stunning ocean views and easy access to various activities and restaurants.
3. Downtown Daytona Beach
- Appeal: Ideal for families and those who want to be close to everything, Downtown Daytona Beach offers a mix of business and culture. It is well-connected via buses and taxis, and features a plethora of cafes, shops, and restaurants. The area is also close to the beach, providing the best of urban and seaside living.
4. Coronado Beach
- Appeal: Coronado Beach is another highly sought-after area, known for its beautiful beach homes and condos. Guests can enjoy beachfront properties with heated pools, BBQ areas, and stunning ocean views. The area is also close to local shops and restaurants, making it a convenient and relaxing destination.
5. Ormond Beach
- Appeal: Ormond Beach offers a more laid-back atmosphere with easy access to the beach. It features a variety of rentals, including lofts and homes, many of which are within walking distance to the beach. The area is also close to attractions like the Daytona International Speedway and Pictona, making it appealing for a range of activities.
These neighborhoods are highly appealing due to their unique blend of beach access, amenities, and local attractions, making them top choices for generating significant Airbnb revenue in Daytona Beach.
Creating an Inviting Airbnb in Daytona Beach: Furnishing and Design Tips
Embrace the Coastal Charm
- Incorporate coastal themes featuring nautical elements, light color palettes, and natural materials to reflect Daytona Beach's relaxed, beachside vibe.
Modern and Comfortable Furnishings
- Use high-quality, modern furniture that elevates the aesthetic and comfort of the space. Ensure furnishings are durable and functional to meet the needs of various guests.
Event-Themed Decor
- For specific events like the Daytona 500, enhance your property with event-themed decor such as racing-themed wall art, model cars, and memorabilia to attract enthusiasts.
Outdoor Spaces
- Highlight private outdoor spaces like balconies, patios, and heated pools, which are highly favored by guests. These areas can include outdoor seating, fire pits, or barbecue grills for socializing and relaxation.
Proximity to Attractions
- Ensure your property is located near key attractions such as the beach, Daytona International Speedway, and the historic boardwalk. This proximity can significantly enhance the appeal of your rental.
Family-Friendly Amenities
- For families, add child-friendly amenities like board games, beach toys, high chairs, and portable cribs. This can lead to positive reviews and recommendations.
Enhanced Connectivity and Entertainment
- Provide strong Wi-Fi and cable services that include sports channels, especially during events like the Daytona 500. This can be a major selling point for guests who want to stay connected and entertained.
Safety and Security
- Given the large crowds during events, enhance security measures such as secure parking, updated locks, security cameras in common areas, and clear safety guidelines to reassure guests.
Local Touches
- Collaborate with local businesses to offer discounts or special deals for your guests. This can include partnerships with restaurants, bars, and souvenir shops to enhance the guest experience and support the local economy.
Flexible Booking Options
- Offer flexible booking options, such as weekend getaways or week-long vacations, to attract a wider range of guests, especially during peak seasons like Spring Break.
Customized Welcome Packages
- Tailor welcome packages to include event schedules, maps of popular routes, and information on local businesses. This can be particularly appealing during events like Biketoberfest.
Maintenance and Cleaning
- Prepare for post-celebration clean-up and maintenance. Offering additional cleaning services during and after the stay can be a thoughtful touch, especially for larger groups or families.
Discover Daytona Beach: Local Attractions and Insider Tips for Your Guests
Top Attractions
- Daytona International Speedway:
A must-visit for racing enthusiasts, offering tours and state-of-the-art facilities.
Daytona Beach Boardwalk:
A mile-long beachside boardwalk with games, rides, food, music, and a Ferris wheel. Don't miss the free concerts in the bandshell.
Daytona Beach Main Street Pier:
A historic 1000-foot-long pier perfect for fishing, sightseeing, and spotting marine life like dolphins and seabirds.
Ponce Inlet Lighthouse & Museum:
Climb to the top for panoramic views and explore the surrounding museum.
Daytona Lagoon:
A water park with water slides, a wave pool, tubing river, go-karts, laser tag, and more.
Stetson Mansion:
Named by TripAdvisor as a Top 10 Place to Visit in Florida, this mansion offers historic tours and is especially renowned during the holiday season.
Cici and Hyatt Brown Museum of Art:
The largest repository of Florida art in the world, a great spot for art enthusiasts.
Marine Science Center:
A place to learn about and interact with marine life, including sea turtles and other local species.
Jackie Robinson Ballpark:
- A historic ballpark with a rich baseball history, perfect for sports fans.
Insider Tips
- Beach Activities:
Daytona Beach offers 23 miles of public access beach. Encourage guests to rent bicycles, take surf lessons, or simply enjoy the family-friendly atmosphere.
Shopping:
Recommend the Tanger Outlets for shopping, with over 75 shops and restaurants. Also, suggest visiting Ocean Walk Village for trendy eateries and unique shops.
Historical Sites:
Suggest tours of historical sites like the Mary McLeod Bethune Home, The Casements, and the Cassadaga Spiritualist Camp.
Nature and Outdoor Activities:
Point out the Sugar Mill Botanical Gardens and the scenic Ormond Loop & Trail for nature lovers. Also, recommend deep-sea excursions, flats fishing, and other water sports like jet skiing and parasailing.
Local Events and Festivals:
Inform guests about the various festivals and events happening in Daytona Beach, such as the Holiday Tour of Homes and the sea turtle nesting season from mid-May to October.
Dining and Nightlife:
- Recommend the restaurants on the Main Street Pier and in Ocean Walk Village. Also, suggest visiting Zeno's World's Most Famous Taffy for a sweet treat.
By sharing these attractions and insider tips, you can help your guests make the most of their visit to Daytona Beach.
Practical Tips to Run a Successful Short-Term Rental Business in Daytona Beach, Florida
To ensure a smooth and successful short-term rental business in Daytona Beach, Florida, several practical tips can be invaluable. First, it is crucial to inform guests about noise regulations and quiet hours to maintain a harmonious environment with neighboring residents. This can be achieved by including clear guidelines in both digital and physical house manuals, which should also contain essential instructions, Wi-Fi passwords, and other pertinent information.
A simplified check-in process can significantly enhance the guest experience. Utilizing smart locks eliminates the need for physical key exchanges, making the arrival process more convenient. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate the property effortlessly.
By adhering to these tips, hosts can ensure compliance with local regulations, such as noise and nuisance rules, while also enhancing guest satisfaction and streamlining the operational aspects of the rental business.
Here is a brief list of house cleaning providers in Daytona Beach, Florida:
House Cleaning Services in Daytona Beach, FL
Molly Maid
- Offers customized cleaning plans, no contracts, and a 24-hour warranty.
- Services include house cleaning with a focus on customer satisfaction.
The Cleaning Authority
- Provides comprehensive cleaning services using a Detail-Clean Rotation System.
- Services include house cleaning, apartment cleaning, green cleaning, move in/move out cleaning, commercial cleaning, and construction clean-up.
- Fully bonded and insured, with a commitment to environmentally responsible products.
Merry Maids
- Offers professional cleaning services with 40 years of experience.
- Provides thorough cleaning solutions for every part of your home.
- Customized cleaning plans available.
Just Peachy Clean LLC
- Provides professional cleaning services in Daytona Beach and nearby communities in Volusia County.
- Focuses on delivering high-quality cleaning services to residential areas.
For additional options, you can also refer to local listings on platforms like Care.com, which lists multiple affordable house cleaning services in the area.
Short-Term Rental Management Fees in Daytona Beach, Florida: A Range of 10%-30% Depending on Service Level
In Daytona Beach, Florida, short-term rental management fees can vary significantly, ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as MasterHost, HeartHomes, and GoSummer, offer comprehensive services including guest communication, marketing, booking management, and property maintenance, which typically come with higher fees, often between 12% to 20%.
Basic service packages, on the other hand, may start at around 10% and include fewer services, such as listing creation and booking management. Additional fees can apply for services like cleaning, repairs, and interior design, which may be charged separately or included in the overall management fee. Companies like HostGenius also offer tiered pricing, with the potential to earn up to 30% more compared to self-management, but at a higher management fee. Understanding these fee structures is crucial for property owners to maximize their rental income while minimizing hassle.