Daytona Beach, Florida, is experiencing a thriving short-term rental market, characterized by high average daily rates of $241.1, peak occupancy of 70% in March, and significant annual revenue potential of $47.6K, making it an attractive and lucrative opportunity for hosts and investors.
Thriving Short-Term Rental Market in Daytona Beach, Florida
Daytona Beach is experiencing a robust short-term rental market, driven by its allure as a top tourist destination. According to recent data, short-term rentals in Daytona Beach boast an average occupancy rate of 52%, indicating a high demand for these accommodations. The average daily rate for these rentals stands at $230, contributing to a significant monthly revenue of $22,190. This strong performance is further highlighted by the growth in active listings, which have increased by 8% over the past year. With its 23 miles of coastline and vibrant tourism scene, Daytona Beach continues to attract a diverse population of travelers, making it an excellent investment opportunity for real estate investors and vacation rental hosts.
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 major thoroughfares where hotels and motels typically operate, beachfront areas, downtown, and Midtown.
- Rentals are permissible within four designated tourist zoning districts and thirteen redevelopment area zoning districts.
Licensing Requirements
- Hosts must obtain a city-issued occupational license to conduct any business within the city.
- A Florida Department of Business and Professional Regulations (DBPR) license is required for all transient rental types.
- A valid Business Tax Receipt is necessary, subject to annual renewal by September 30 each year.
Building and Housing Standards
- Vacation rentals must adhere to specific standards, including limitations on accessory uses (no more than 20% of the gross floor area).
- Accessory uses should primarily serve short-term rental guests and be located within the principal building without external advertising.
Tax Obligations
- Property owners must register for the Tourist Development Tax (also known as the "resort tax" or "bed tax") collected by Volusia County.
- Hosts must obtain a Sales Tax Number from the Florida Department of Revenue before applying for a Volusia County Tourist Tax account.
Registration and Inspection
- All rental properties must be registered and pay the tourist tax.
- Property owners must obtain a city-issued rental property license, which must be renewed annually along with an annual re-inspection fee.
Occupancy and Guest Regulations
- State regulations may limit occupancy to two people per bedroom, plus an additional two people in a common area, unless each person has at least 50 square feet of space.
Noise and Nuisance Regulations
- Hosts must comply with city noise and nuisance regulations.
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 commercial rental activities.
HOA and Community Association Rules
- Hosts in communities governed by Homeowners Associations (HOAs) or community associations must comply with additional rules and restrictions, including limitations on rental activities and property maintenance requirements.
Compliance with State and Local Laws
- Hosts must comply with both state-level laws and local regulations, which can include specific zoning ordinances and tax requirements.
- Regularly consulting the City’s ordinances and state laws is essential to stay compliant with the dynamic regulatory landscape.
Top Neighborhoods for Airbnb Revenue in Daytona Beach, Florida
1. Daytona Beach Shores North
- This area is renowned for its luxury and relaxation, offering stunning oceanfront properties with breathtaking ocean views and access to exclusive beachfronts. Guests are drawn to the high-end accommodations, private beaches, gourmet dining, and boutique shopping, making it an ideal location for those seeking an upscale beach living experience.
2. Daytona Beach North
- Characterized by a dynamic mix of residential and commercial zones, this neighborhood provides easy access to a wide array of local amenities, including shops, restaurants, and recreational facilities. Its strategic location offers the convenience of city living while being just minutes away from the beach, attracting a diverse population of young professionals and families.
3. Seabreeze Historic District
- Known for its rich heritage, this neighborhood boasts historic homes and buildings that showcase architectural beauty from Victorian to Mid-Century Modern styles. Guests appreciate the preservation of history and culture, and the area's proximity to the beach adds to its appeal.
4. Surfside Village Historic District
- Similar to Seabreeze, this district is celebrated for its historical significance and unique architectural styles. It offers a glimpse into Daytona Beach’s seaside heritage with homes and buildings that reflect the leisure and elegance of bygone eras. The district’s seaside appeal and easy access to the beach make it a favorite among guests.
5. Ormond Beach
- Located just north of Daytona Beach, Ormond Beach is a tranquil retreat with well-maintained homes, lush landscapes, and a friendly community vibe. Guests are attracted to its peaceful residential streets and close proximity to the beach, making it perfect for those seeking a quiet escape while still enjoying coastal amenities.
These neighborhoods are highly appealing due to their unique blend of historical charm, luxury living, and convenient access to beaches, amenities, and local attractions, which collectively contribute to their high Airbnb revenue.
Creating an Inviting Airbnb in Daytona, Florida: Design and Furnishing Tips
Understanding Daytona's Unique Style
- Daytona Beach is known for its beautiful beaches, vibrant year-round events, and a mix of coastal and modern aesthetics. Reflect this unique style in your design choices.
Furniture and Decor
- Coastal Aesthetics: Use light colors, natural materials, and nautical themes such as blue hues, driftwood accents, and beach-themed artwork to evoke feelings of relaxation and tranquility.
- Modern Comfort: Incorporate modern minimalist furnishings to provide a sleek and contemporary aesthetic that appeals to a wide range of guests.
Key Amenities and Features
- Outdoor Spaces: Enhance your property with outdoor spaces such as patios, heated pools, and cozy fire pits. These areas are highly favored by guests and conducive to evening gatherings.
- Modern Appliances and Furnishings: Invest in high-quality furniture, modern appliances, and stylish decor to elevate the overall aesthetic and comfort of the space.
Event-Themed Decor
- Daytona 500: For the Daytona 500, incorporate racing-themed decor such as wall art, model cars, and other memorabilia to attract motorsport enthusiasts.
- Biketoberfest: Embrace motorcycle culture with vintage motorcycle posters, themed artwork, or displays of classic motorcycle parts.
- Spring Break and Family Vacations: Add family-friendly amenities like board games, beach toys, high chairs, and portable cribs to cater to diverse guest needs.
Connectivity and Entertainment
- Wi-Fi and Sports Channels: Ensure strong Wi-Fi and include sports channels, especially during events like the Daytona 500, to enhance the guest experience.
- Recreational Facilities: Consider adding game rooms or private hot tubs to provide additional recreational facilities for guests.
Safety and Security
- Enhanced Security Measures: Given the large crowds during events, enhance security measures such as secure parking, updated locks, and security cameras in common areas.
Neighborhood and Location
- Proximity to Attractions: Choose locations close to the beach, Daytona International Speedway, and historic sites to attract a variety of guests.
Customized Welcome Packages
- Tailored Welcome: Provide welcome packages that include event schedules, maps of popular routes, and information on local businesses to enhance the guest experience.
Maintenance and Post-Celebration Care
- Additional Cleaning Services: Offer additional cleaning services during and after the stay, especially for larger groups or families, to ensure a stress-free holiday.
Discover Daytona Beach: Top Attractions and Insider Tips for Your Guests
Historical and Cultural Attractions
- Stetson Mansion: A must-visit, especially during the holiday season, as it was named a USA Today 10 Best Holiday Home Tour. It is also one of the Top 10 Places to Visit in Florida according to TripAdvisor.
- Mary McLeod Bethune Home: Learn about the life and legacy of Dr. Mary McLeod Bethune, known as the "First Lady of Negro America".
- The Casements: Explore this historic mansion with its distinctive casement windows and beautiful gardens.
- Lilian Place: Tour the oldest house on Daytona Beachside, built in 1884, for a glimpse into the area's rich history.
Beaches and Outdoor Activities
- Daytona Beach Boardwalk: A mile-long beachside boardwalk with games, rides, food, and music. It's a hub of activity with a Ferris wheel, go-carts, and free concerts.
- Daytona Beach Main Street Pier: A historic pier perfect for fishing, sightseeing, and enjoying restaurants with ocean views. It's also great for sunrise selfies and spotting marine life.
- Ponce Inlet Lighthouse & Museum: Climb Florida's tallest lighthouse at 175 feet and explore the surrounding museum.
Family Fun and Entertainment
- Daytona Lagoon: A water park with water slides, a wave pool, tubing river, go-karts, laser tag, and more.
- Daytona International Speedway: Even if there's no race, the speedway offers tours and a $400 million "re-imagined" facility with state-of-the-art experiences.
- Marine Science Center: A great place to learn about marine life and even interact with some of the animals.
Shopping and Dining
- Tanger Outlets: Shop at over 75 stores and restaurants in this popular outlet mall.
- Ocean Walk Village: Enjoy trendy eateries and shops in this vibrant area near the boardwalk.
- Zeno's World's Most Famous Taffy: Visit this iconic taffy factory for a sweet treat.
Insider Tips
- Bike Trips: Recommend a family bike trip along the beach or the scenic Ormond Loop & Trail for a unique way to explore the area.
- Local Eateries: Point guests towards local eateries and restaurants along the Halifax River and on the Main Street Pier for authentic dining experiences.
- Day Trips: Suggest day trips to nearby Central Florida attractions, making Daytona Beach a perfect base camp for exploring the region.
- Events and Festivals: Check the local calendar for events and festivals, as Daytona Beach is known for its vibrant cultural scene.
Additional Recommendations
- Sugar Mill Botanical Gardens: Explore the English sugar mill ruins surrounded by lush botanical gardens and scenic walking paths.
- Lyonia Environmental Center: Provide insight into Volusia County's fragile ecosystems and unique wildlife.
- Helicopter Rides: For a unique perspective, recommend an exciting Daytona helicopter ride over the city and beaches.
By sharing these attractions and 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, Florida
To ensure a smooth and successful short-term rental business in Daytona, Florida, several practical tips can make a significant difference in guest satisfaction and compliance with local regulations.
Noise Regulations and Quiet Hours
Inform your guests about the noise regulations and quiet hours to avoid any potential issues with neighbors. Include a clear section in your house manual outlining the quiet hours and the consequences of violating these rules.
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 be easily accessible and provide detailed guidance to help guests navigate the property comfortably.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with a unique access code and detailed instructions on how to enter the property. This not only enhances convenience but also reduces the likelihood of lost keys.
Clear Parking Instructions
Include parking instructions with photos in your house manual to help guests understand where and how to park their vehicles. This can prevent confusion and potential parking violations, ensuring a hassle-free stay for your guests.
By implementing these tips, you can enhance the guest experience, maintain compliance with local regulations, and ultimately run a more efficient and successful short-term rental business in Daytona, Florida.
Here is a brief list of house cleaning providers in Daytona, Florida:
House Cleaning Services
The Cleaning Authority - Daytona Beach
- Offers comprehensive cleaning services including house cleaning, apartment cleaning, green cleaning, move-in/move-out cleaning, and commercial cleaning.
- Uses a Detail-Clean Rotation System for thorough cleaning.
- Fully bonded and insured, with environmentally responsible products.
Molly Maid of Daytona and New Smyrna Beach
- Provides customized cleaning plans, move-out cleaning, and recurring cleaning services.
- Offers services such as floor cleaning, dusting, and sanitizing.
- No contracts and a 24-hour warranty.
Merry Maids of South Daytona
- Offers expert cleaning services with 40 years of experience.
- Provides thorough solutions for every part of your home.
- Customized cleaning plans to meet your needs.
TidyTask Daytona
- Offers recurring cleaning, vacation rental cleaning, move-in/move-out cleaning, and laundry services.
- Uses natural and organic products and provides personalized solutions.
- Specializes in short-term rental cleaning and other tailored services.
Daytona, Florida, Short-Term Rental Management Fees: A Comprehensive Guide
In Daytona, Florida, managing short-term rental properties comes with a range of fees, typically varying from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as MasterHost and Awning, offer comprehensive services including guest communication, marketing, pricing optimization, and maintenance, which generally fall on the higher end of the fee spectrum, often ranging from 12% to 20% of revenue.
Basic services, which may include only the essential management tasks like booking management and guest screening, can be more affordable, starting at around 10% of revenue. Additional fees may apply for services such as cleaning, repairs, and professional design or furnishing of the property. These extra costs can vary, but they are often necessary to maintain the property's condition and attract high-paying guests.