Airbnb & VRBO Performance in Des Moines Iowa.

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Des Moines, Iowa: Airbnb & VRBO Vacation Rental Market Overview

The short-term rental market in Des Moines, Iowa, is thriving, with an average occupancy rate of 50%, a daily rate of $149, and annual revenue of $13,483, making it an attractive and profitable investment opportunity.

Market overview

Thriving Short-Term Rental Market in Des Moines, Iowa

Des Moines, Iowa, is experiencing a robust and vibrant short-term rental market, making it an attractive destination for both investors and travelers. The city boasts an average occupancy rate of 50%, indicating a strong demand for short-term accommodations. The average daily rate for these rentals stands at $149, reflecting the market's health and profitability. With average monthly revenue of $13,483, Des Moines offers promising returns for hosts and property managers. The city's regulations, while ensuring balance and community harmony, have not deterred the growth of short-term rentals, with active listings increasing by 8% over the past year. This combination of high occupancy rates, lucrative daily rates, and growing market activity makes Des Moines an excellent choice for those looking to invest in or enjoy short-term rentals.

Short Term Regulations

Short-Term Rental Regulations in Des Moines, Iowa for 2024

Licensing and Approval

  • All short-term rentals must acquire a rental certificate and be approved by the city's board of adjustment.
  • Property owners are allowed to operate as a short-term rental for five years before needing to secure an ongoing license.

Insurance Requirements

  • Hosts must secure liability insurance with a minimum coverage of $500,000, covering bodily injury and property damage.

Property Maintenance and Safety

  • Ensure all sidewalks, walkways, stairs, driveways, and parking spaces are in good repair and free from hazardous conditions.
  • Maintain handrails and guardrails to support normally imposed loads.
  • Keep premises and exterior property, including fence lines, free from excessive weeds or plant growth over 12 inches in height.
  • Ensure all structures, including detached garages and sheds, remain structurally sound and are used solely for tenant occupant use.
  • No inoperative or unlicensed motor vehicles may be parked or stored on the property.
  • All structures should be free from rodent harborage and infestation.

Zoning and Density Restrictions

  • Short-term rentals must be located at least 700 feet apart unless grandfathered in.
  • Only one short-term rental is allowed per single-family home, and it must be the owner or tenant's primary residence.

Occupancy and Guest Requirements

  • Rentals are limited to a single party of individuals and must include at least one adult aged 21 or older.
  • Maximum occupancy is limited by the city's property maintenance code based on bedroom count.

Operational Requirements

  • Owners must provide an information packet to guests with emergency contacts, parking rules, trash schedule, and occupancy limits.
  • Quiet hours are in effect from 10pm to 7am.
  • Owners must provide annual notice to neighbors within 200 feet of the STR property.

Tax and Financial Obligations

  • Hosts must register with the Iowa Department of Revenue to collect and remit state and local taxes on rental income, including a 5% state hotel tax and any additional local taxes.

Documentation and Inspection

  • Hosts must submit an application with supporting documentation, including proof of insurance, parking plan, occupancy limits, and 24/7 contact information.
  • Inspectors will schedule a site visit to ensure the property is up to code and compliant with all STR regulations.
  • Hosts must keep all records on file for at least three years and make them available to city officials upon request.

Neighbor Notification

  • Hosts must notify neighbors within 200 feet of the property before applying for a permit, allowing residents to voice any concerns or objections.

Rental Caps

  • Rentals are capped at 120 days per year unless the owner lives on-site.
Neighborhood Performance

Top Airbnb Revenue-Generating Neighborhoods in Des Moines, Iowa

1. Downtown Des Moines

  • Appeal: Downtown Des Moines is highly appealing due to its central location, proximity to major attractions such as the Wells Fargo Arena, the Science Center, and a vibrant nightlife. Guests can walk to numerous restaurants, bars, and historical landmarks. Many rentals offer amenities like free parking, gyms, and skywalk access, making it convenient for both leisure and business travelers.

2. Historic East Village

  • Appeal: The Historic East Village is a favorite among guests for its vibrant neighborhood atmosphere, easy walkability to nightlife, the Farmer's Market, and the Civic Center. The area is known for its shopping, great restaurants, and entertainment options. Rentals here often include modern lofts, private terraces, and access to the Des Moines trail system.

3. Woodland Heights

  • Appeal: Woodland Heights is attractive due to its historic charm and convenient location. Guests can walk to downtown and enjoy the amenities along Ingersoll Avenue, which includes shops, bars, and restaurants. Rentals in this area often feature historic duplex houses with private kitchens, bathrooms, and balconies offering downtown views.

4. Sherman Hill

  • Appeal: Sherman Hill is another popular neighborhood, known for its cozy and convenient stays. It is close to downtown Des Moines, offering easy access to key attractions. Rentals here often include free parking, fully equipped kitchens, and comfortable living spaces, making it a favorite for families and couples.

5. Beaverdale

  • Appeal: Beaverdale is a family-friendly neighborhood that appeals to guests looking for a quieter yet still convenient stay. It is close to Drake University and features homes with yards, outdoor patios, and fire pits. The neighborhood is steps away from grocery stores, ice cream shops, and dining options, providing a relaxed and welcoming atmosphere.

These neighborhoods are highly rated for their location, cleanliness, and the variety of amenities they offer, making them the top revenue-generating areas for Airbnb in Des Moines, Iowa.

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Design Tips

Furnishing and Design Tips for an Inviting Airbnb in Des Moines, Iowa

Define Your Property's Aesthetic

  • Align your property's aesthetic with the local market and price tier to appeal to your target audience. Consider the historic charm and modern amenities that Des Moines is known for.

Room-by-Room Furniture Considerations

Bedroom

  • For a large bedroom, use an 8×10 foot rug for a queen bed and a 9×12 foot rug for a king-sized bed. In smaller bedrooms, use a 5×8 foot rug for queen beds and a 6×9 foot rug for king beds. Ensure the rug extends 36 inches on either side of the bed.

Dining Room

  • Choose a rug that fits the shape of your dining table. For rectangular tables, use an 8×10 or 9×12 foot rug. For circular tables, the rug should extend 2 feet beyond each side of the table.

Living Room

  • Use accent chairs to add additional seating without taking up too much space. These chairs can be sculptural or foundational and can be easily swapped out to refresh the look of the room.

Lighting and Ambiance

  • Replace harsh overhead lighting with smaller, warmer lights to create a soothing ambiance. Use lamps, table lamps, and floor lamps to mix things up and add warmth to the space. Mirrors placed across from windows can reflect natural light and create the illusion of more space.

Vertical Space Utilization

  • Make the most of vertical wall space for efficient storage. Use leaning, floating, or doorframe-mounted shelves to reduce visible clutter and enhance the feeling of calm in the space.

Art and Decor

  • Hang large pieces of art, lamps, or chandeliers to add drama to small spaces. Mirrors can also create the illusion of more space and add to the overall aesthetic.

Guest Convenience and Comfort

  • Ensure your Airbnb provides hotel-like convenience and sophistication along with home-like comfort. Include basic amenities such as a coffee maker, toilet paper, and high-quality linens to enhance the guest experience.

Exterior and Property Maintenance

  • Maintain the exterior of your property according to Des Moines' regulations. Ensure sidewalks, walkways, and parking spaces are in good repair, and keep the premises free from excessive weeds and rodent infestations.

Local Style Integration

  • Incorporate elements of Des Moines' unique style, such as historic charm and modern amenities, into your decor. For example, use classic brick fireplace designs or craftsman-style built-ins to reflect the city's architectural heritage.
Insider Tips

Discovering Des Moines: Local Attractions and Insider Tips for Your Guests

Top Local Attractions

1. State Capitol Building

  • A must-visit monument with its grand staircase, 29 types of marbles, and a public library featuring a magnificent spiral staircase. Don't miss the 3D model of the USS Iowa.

2. John and Mary Pappajohn Sculpture Park

  • A 4.4-acre park in downtown Des Moines, featuring over 20 works of sculptured art. It's free and perfect for families and art enthusiasts.

3. Downtown Des Moines Farmers Market

  • A bustling market with over 300 vendors from across the state, offering fresh produce, live music, and a lively atmosphere. It attracts 25,000 visitors on a normal day.

4. Des Moines Art Center

  • Located in a park, this art center features buildings designed by renowned architects I.M. Pei and Richard Meier. The center courtyard is particularly nice and relaxing.

5. Greater Des Moines Botanical Garden

  • A 17-acre garden along the Des Moines River, displaying over 4,000 plant species. While not free, it's a beautiful spot, especially in spring and summer.

6. Blank Park Zoo

  • A family-friendly zoo with a variety of animals and interactive exhibits.

7. East Village

  • A trendy neighborhood known for its vibrant atmosphere, shopping, dining, and nightlife. It's a great place to explore and enjoy local culture.

8. Science Center of Iowa

  • An interactive science museum perfect for families, offering hands-on exhibits and educational programs.

Insider Tips

Free Attractions

  • Many attractions in Des Moines are free, including the State Capitol Building, Pappajohn Sculpture Park, and most of the downtown parks and trails.

Outdoor Activities

  • Des Moines has over 800 miles of trails, lakes, and water activities. Water Works Park is a highlight, offering green space, biking trails, and boat rentals.

Arts and Culture

  • Follow the Art Route DSM, a 6-mile path showcasing nearly 100 pieces of public art. The Des Moines Civic Center hosts nationally acclaimed Broadway shows and other live performances.

Local Favorites

  • Check out the "Des Best" lists on Catch Des Moines for local recommendations on restaurants, boutiques, and ice cream shops, voted by locals themselves.

Seasonal Events

  • Don't miss the Iowa State Fair, the Des Moines Arts Festival, and the Jolly Holidays Lights display at Water Works Park during the holiday season.

Neighborhood Exploration

  • Explore the Historic Court Avenue District, Historic East Village, and other neighborhoods for their unique charm, shopping, and dining experiences.

Sports and Entertainment

  • Catch a game by the Iowa Cubs, Iowa Barnstormers, or Iowa Wild. Des Moines is also known for its live music scene, with various concert venues and music festivals throughout the year.

By sharing these attractions and tips, you can help your guests make the most of their visit to Des Moines and experience the city like a local.

Practical Tips

Practical Tips to Run a Successful Short Term Rental Business in Des Moines, Iowa

To ensure a smooth and successful short-term rental business in Des Moines, Iowa, several key practices can be implemented. First, it is crucial to adhere to the city's noise regulations by informing guests about quiet hours, which are in effect from 10pm to 7am. This can be done by including this information in a comprehensive digital and physical house manual that also provides essential instructions, Wi-Fi passwords, and other important details.

Creating a detailed house manual helps guests navigate the property easily and reduces the likelihood of misunderstandings. For a streamlined check-in process, consider utilizing smart locks, which eliminate the need for physical key exchanges and provide guests with immediate access upon arrival. Additionally, provide clear parking instructions accompanied by photos to avoid any confusion and ensure that guests park in designated areas, complying with the city's off-street parking requirements.

By following these tips, you can enhance the guest experience, maintain compliance with local regulations, and build a positive reputation for your short-term rental business in Des Moines.

Local Vendors

Here is a brief list of house cleaning providers in Des Moines, Iowa, presented in markdown format:

House Cleaning Providers in Des Moines, Iowa

Molly Maid of Des Moines

  • Offers customized cleaning plans, no contracts, and a 24-hour warranty.
  • Services include floor cleaning, dusting, washing and sanitizing, and recurring cleaning options.

CottageCare

  • Provides eco-friendly products and flexible service options.
  • Services include kitchen cleaning, bathroom cleaning, surface dusting, furniture cleaning, and hard floor cleaning.
  • No contracts or rescheduling fees, with a 100% Money Back Guarantee.

The Cleaning Authority - Des Moines

  • Uses a Detail-Clean Rotation System for thorough cleaning.
  • Services include bathroom, kitchen, living area, and sleeping area cleaning.
  • Fully bonded and insured, with environmentally responsible cleaning products.

The Queen of Clean

  • Offers customized residential cleaning services, including one-time deep cleaning, move-in/move-out cleaning, and recurring cleaning.
  • Also provides commercial cleaning services and post-construction clean-up.
  • 24-hour satisfaction guarantee.

Merry Maids of Des Moines

  • With 40 years of experience, offers expert cleaning services to reclaim your time.
  • Services include comprehensive home cleaning from top to bottom.
  • Backed by a name with decades of experience.
Management fees

Des Moines, Iowa: Understanding Short-Term Rental Management Fees

In Des Moines, Iowa, the fees for managing short-term rentals 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 comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often falling between 20% to 30% of the rental income. In contrast, basic services that may only include rent collection and minimal oversight can be less expensive, usually around 10% to 15%. Additionally, property owners may incur extra fees for services like cleaning, repairs, or design enhancements, which can further impact the overall cost of managing a short-term rental property.

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Why choose RedAwning

RedAwning is a tech leader in full-service short-term rental management, powered by our exclusive, unmatched tools.
Other property managers
Cost
Starting at 10%
25-40%
Guest communications
5-15 mins / 24 hours a day
1 hour+
Host communications
Dedicated phone and text line with no time on hold
Chat bots, hold lines and email threads
Insurance
Robust liability and dwelling coverage for every reservation
Spotty coverage with low claim approval rates
Contract
No cancellation fees
No contract lock-in
Just 90 days notice to cancel
Cancellation penalties
Number of Channels Your Listing is On
50+
2-4

Experience in numbers

Rest well knowing your property is managed by an experienced team powered by world-class technology.
+10-30%
in gross revenue
4.8 stars
guest rating
14+ years
managing STRs

Short Term Rental Calculator

Find out how much your property in Des Moines should generate as a short term rental and look at the performance of properties around yours.

35,000+ Properties
Hosts stay with RedAwning
1,000,000,00 Nights Booked
RedAwing knows how to get bookings
50+ Top Booking Channels
More than any other platform available

Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Des Moines.

Living Room
Seating: Sofa, armchairs, and ottomans
Coffee Table
Entertainment: Smart TV (with streaming apps) and remote control
Decor: Area rug, wall art, plants, and throw pillows
Lighting: Floor lamp or table lamps
Charging Stations: Power strips or outlets with USB ports
Bedrooms
Beds: High-quality mattress with mattress protector
Linens: At least two sets of sheets per bed
Pillows: Hypoallergenic pillows (2-4 per bed)
Blankets: Extra throw blankets or quilts
Nightstands: With lamps or charging docks
Closet or Storage: Hangers, dresser, or luggage rack
Blackout Curtains or Shades
Bathrooms
Towels: Bath towels, hand towels, washcloths (2 sets per guest)
Shower Curtain & Liner
Toiletries: Shampoo, conditioner, body wash, hand soap
Bathroom Essentials: Toilet paper, tissues, trash bin
Hairdryer
Mirror: Full-length or wall mirror
Dining Area
Dining Table: Seating for the maximum number of guests
Place Settings: Placemats or tablecloths
Centerpiece: Vase with flowers or decorative piece
Kitchen
Appliances: Refrigerator, microwave, toaster, coffee maker, kettle
Cookware: Pots, pans, baking trays
Utensils: Forks, knives, spoons, spatulas, tongs
Dinnerware: Plates, bowls, glasses, mugs (2 sets per guest)
Cutting Board & Knives
Basic Spices & Condiments: Salt, pepper, oil
Cleaning Supplies: Sponge, dish soap, paper towels, trash bags
Outdoor Space (if applicable)
Seating: Outdoor chairs, benches, or lounges
Table: For outdoor dining or drinks
Lighting: String lights or outdoor lanterns
Grill: With necessary utensils and instructions
Outdoor Trash Bin
Extras to Elevate Guest Experience
Welcome Basket: Snacks, water bottles, or wine
Guidebook: Local recommendations and house rules
Board Games or Books: Entertainment for guests
Umbrella & Flashlight
Iron & Ironing Board
Laundry: Washer, dryer, and detergent (if available)
Unlock your home’s potential
Schedule a call to learn more about Awning’s Short Term Rental Property Management Service.
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⇤ Airbnb Statistics for Iowa