The short-term rental market in Durham, North Carolina, is thriving, with a 43.54% growth over the last five years, high occupancy rates of 51%, and significant monthly revenues, making it an attractive and lucrative investment opportunity.
Thriving Short-Term Rental Market in Durham, North Carolina
The short-term rental market in Durham, North Carolina, is experiencing a period of robust growth and strong performance. With an average occupancy rate of 51%, Durham's short-term rentals are in high demand, reflecting the city's appeal to tourists and travelers. The average daily rate for these rentals stands at $176, contributing to a significant monthly revenue of $11,710. This success is part of a broader trend, with the short-term rental market in Durham having grown by 43.54% over the last five years, driven by platforms like Airbnb and VRBO. The combination of high occupancy rates and lucrative daily rates makes Durham an attractive destination for both visitors and investors in the short-term rental sector.
Short-Term Rental Regulations in Durham, North Carolina for 2024
General Regulations
- No Specific Short-Term Rental Legislation: Durham does not have specific laws or regulations for short-term rentals, so they are governed by general North Carolina short-term rental laws and local housing codes.
Zoning and Occupancy
- Residential Zoning Compliance: Short-term rentals must be located in areas zoned for residential use and comply with residential standards for property usage, noise, and parking.
- Occupancy Limits: Typically limited to 2 people per bedroom plus 2 additional guests.
Safety and Housing Standards
- Minimum Housing Code Compliance: All rental properties, including short-term rentals, must meet the standards outlined in the Durham City Housing Code, ensuring structural integrity and proper functioning of electrical, plumbing, heating, and ventilation systems.
- Inspections: Properties may be subject to inspections under the Proactive Rental Inspection Program (PRIP) to ensure compliance with the Minimum Housing Code.
Rental Agreements and Documentation
- Written Vacation Rental Agreement: Hosts must sign a written vacation rental agreement with guests, outlining terms of the stay, house rules, and compliance with local regulations.
- Business Registration: Hosts must register their short-term rental as a business with the Durham County Tax Administration.
Taxes
- State and Local Taxes: Hosts are responsible for collecting and remitting the applicable state sales tax (4.75%) and Durham County's room occupancy tax (6%) on all short-term rental income.
Noise and Other Regulations
- Noise Ordinances: Noise ordinances are enforced, especially after 10pm.
- Parking: Parking may be limited based on the number of bedrooms.
State-Level Regulations
- North Carolina Vacation Rental Act: Applies to all short-term rentals, requiring written rental agreements, fit and habitable premises, and governing security deposits, advance rent payments, and eviction processes.
Additional Compliance
- Compliance with HOA/Condominium Rules: If applicable, hosts must review and comply with the bylaws and rules of homeowners associations (HOA) or condominium associations.
- Maintenance of Guest Records: Hosts should maintain a list of all short-term rental lodgers staying on the premises for a period of three years.
Top Neighborhoods for Airbnb Revenue in Durham, North Carolina
1. Downtown Durham
- Appeal: Downtown Durham is a hub of activity, with easy walking distance to major attractions such as the Durham Performing Arts Center (DPAC), Durham Bulls Athletic Park, Central Park, and the Durham Convention Center. Guests can enjoy a variety of coffee shops, breweries, restaurants, and bars. The area features several highly-rated condos and apartments, many of which include amenities like pools, gardens, and historic charm.
2. Historic Trinity Park
- Appeal: This neighborhood offers a mix of historic charm and modern amenities. Guests can stay in beautifully restored homes and apartments, some of which are within walking distance to Duke University's East Campus and downtown Durham. The area is known for its lively and safe environment, with easy access to Ellerbe Creek Trail and local restaurants and shops.
3. Southside Neighborhood
- Appeal: Located near the American Tobacco Trail, this neighborhood provides easy access to downtown Durham's nightlife, campus highlights, and other top attractions. Guests can enjoy modern and vintage-style homes, some of which are fully equipped with modern appliances and amenities. The proximity to DPAC, American Tobacco Campus, and Five Points makes it a favorite among travelers.
4. Hope Valley
- Appeal: This area is known for its peaceful and luxurious retreats, such as The Sidekick, a stylish poolside carriage house. Guests can enjoy saline pools, peaceful gardens, and backyard amenities like yard games and butterfly gardens. The neighborhood's serene atmosphere and high-quality accommodations make it appealing for those seeking a relaxing getaway.
5. Morehead Hills
- Appeal: This historic district offers charming bungalows and homes that retain their old-school charm while providing modern comforts. Guests can enjoy spacious front porches, fully-stocked kitchens, and proximity to local shops and parks. The neighborhood's family-friendly atmosphere and historic appeal make it a popular choice.
These neighborhoods are highly sought after due to their combination of historic charm, modern amenities, and convenient access to Durham's key attractions, making them ideal for a wide range of travelers.
Furnishing and Design Tips for an Inviting Airbnb in Durham, North Carolina
Understanding Durham's Unique Style
- Durham is known for its vibrant arts and culture scene, world-class universities, and thriving food and drink culture. Reflect this in your design by incorporating local art, eclectic styles, and a blend of modern and vintage elements.
Defining Your Property's Aesthetic
- Define your property's aesthetic based on the local market and your target guests. Opt for a contemporary yet comfortable design that incorporates natural materials like wood and stone.
Key Furniture Considerations
Bedrooms
- Choose a solid, easy-to-clean bed with a mattress at least 8 inches thick. Consider memory foam mattresses for durability and cost-effectiveness.
- Use a storage bed for extra space to stash laundry and linens.
- Add a full-length mirror and ensure a power socket is nearby for hair dryers and straighteners.
Living Areas
- Select a sofa that is durable, easy to clean, and preferably with washable covers. A sofa bed can increase guest capacity and rental income.
- Opt for comfy, lightweight chairs that are sturdy and easy to move around. Darker chairs hide stains better.
Dining Areas
- Use a tough and resistant dining table that can be dressed up with tablecloths, runners, and decor.
- Choose comfortable, lightweight chairs that can support various weights.
Kitchens
- Equip your kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Add extras such as a good blender and sharp knives.
- Stock up on basic cookware, utensils, and dinnerware. Include items like a cutting board, measuring cups, and a corkscrew.
Workspaces
- Provide a sturdy desk and a comfortable chair for guests who need to work.
- Ensure good lighting and easy access to power outlets. High-speed internet is crucial for business travelers and digital nomads.
Smart Storage and Space Optimization
- Use smart storage solutions like beds with drawers, wall hooks for coats, and stackable containers to keep the space tidy.
- Choose space-saving furniture with big functionality, such as sofa beds, folding tables, or ottomans with hidden storage compartments.
Enhancing Ambiance
- Use mirrors to make your Airbnb feel bigger and brighter.
- Incorporate local artwork and vintage pieces to give your property a unique character that reflects Durham's culture.
Amenities and Extras
- Provide high-quality, durable towels in neutral colors that can be bleached.
- Offer basic toiletries, a hairdryer, and a first-aid kit to enhance guest comfort.
- Consider adding entertainment facilities like game rooms or outdoor spaces for social activities.
Accessibility and Safety
- Ensure your Airbnb is accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.
- Install smoke detectors, carbon monoxide detectors, and a first aid kit for safety.
Neighborhood Considerations
- Choose neighborhoods that are culturally vibrant and accessible to attractions, such as downtown Durham, North Hills, or areas near Duke University. These locations can attract a diverse range of guests.
Discovering Durham, North Carolina: Local Attractions and Insider Tips
Top Local Attractions
1. Duke University
- Explore the stunning Gothic architecture and expansive grounds, including the picturesque Duke University Chapel.
- Visit the Duke Lemur Center and the Nasher Museum of Art, which offers free admission and a variety of exhibitions.
2. Historical Sites
- Tour the Bennett Place State Historic Site, where Confederate Gen. Joseph E. Johnston and Union Gen. William T. Sherman signed the surrender papers for Confederate armies.
3. Theater and Performing Arts
- Catch a show at the Carolina Theatre, a historic performing arts and cinema complex, or visit the Durham Performing Arts Center for a wide range of performances.
4. Museums and Gardens
- Visit the Museum of Life + Science, featuring exhibits like the Dinosaur Trail, Wetland Boardwalk, and animal exhibits. Also, explore the beautiful Sarah P. Duke Gardens, one of the finest gardens in the country.
5. Outdoor Activities
- Hike or bike through the trails at Eno River State Park, perfect for hiking, kayaking, canoeing, and fishing. Enjoy a picnic lunch or a refreshing swim in the summer.
6. Local Craft Breweries and Wineries
- Relax or prep for a night out by visiting local breweries and wineries. Durham is known for its vibrant craft beer and wine scene.
7. Family-Friendly Venues
- Bring the kids to Kidzu Children’s Museum or Marbles Kids Museum for a day of play and learning.
8. Sports
- Catch a Minor League Baseball game at the Durham Bulls Athletic Park, home to the Durham Bulls and other local teams.
9. Shopping and Dining
- Shop at local boutiques and enjoy Durham’s diverse culinary scene, featuring American, South American, Italian, Asian, and more.
10. Community Events
- Check out local festivals and events such as the St. Patrick’s Day Parade, Hayti Heritage Film Festival, and the Spring Daze Arts and Crafts Festival.
Insider Tips
- Seasonal Activities: Summer is ideal for outdoor recreation like kayaking and hiking at Eno River State Park. Enjoy outdoor patio dining and comfortable evening temperatures.
- University Visits: Even if you’re not attending the university, visiting Duke University’s campus is a must for its architecture and cultural attractions.
- Local Eats: Try custom-made arepas, bowls, and salads at Guasaca near Duke University, or explore the diverse culinary scene in downtown Durham.
- Pet-Friendly: The Sarah P. Duke Gardens welcomes leashed dogs before 10 am and after 5 pm.
- Community Events: Durham hosts over 5,000 events every year, so be sure to check local listings for festivals, performances, and other activities during your stay.
By sharing these attractions and insider tips, you can help your Airbnb guests make the most of their visit to Durham, North Carolina.
Practical Tips to Run a Successful Short Term Rental Business in Durham, North Carolina
To ensure a smooth and successful short-term rental business in Durham, North Carolina, several practical tips can be implemented:
Noise Regulations and Quiet Hours
Inform your guests about quiet hours to maintain a respectful environment for neighbors. Include clear guidelines on noise levels in your house rules and rental agreement to avoid any potential disputes.
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 helps guests navigate the property easily and reduces the need for frequent inquiries.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide detailed check-in instructions, including photos of the property entrance and any specific steps guests need to follow.
Parking Instructions
Include parking instructions with photos in your house manual to help guests find and use designated parking areas. This can prevent confusion and ensure that guests park in the correct locations, respecting both your property and neighboring residences.
By implementing these tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental business in Durham.
Here is a brief list of house cleaning providers in Durham, North Carolina:
House Cleaning Services
Lucie's Home Services
- Offers high-quality residential home cleaning services in Durham, Chapel Hill, Carrboro, Morrisville, Hillsborough, and Western Wake County.
- Services include one-time, weekly, bi-weekly, and monthly cleanings.
- Fully insured, no contracts, and flexible scheduling.
Carpe Diem Cleaning
- A woman-owned and operated company serving Durham, Raleigh, Chapel Hill, Hillsborough, Cary, and surrounding areas since 1994.
- Services include regular scheduled maintenance cleanings, deep cleaning, move-in/move-out cleaning, and senior cleaning services.
- Offers add-on services like fridge, oven, and inside-window cleaning.
Ana's Cleaning Services
- A local, family-owned company with over 22 years of experience in Durham, Raleigh, and Chapel Hill.
- Provides residential and commercial house cleaning services, including a "Micro-Clean" option for kitchens and bathrooms.
- Offers instant quotes and online payment options.
Merry Maids of Durham
- A professional cleaning service with 40 years of experience.
- Offers comprehensive home cleaning services to help you reclaim your time.
- Provides free estimates for their services.
Additional Resources
- For a broader list of house cleaning services in Durham, you can also refer to the listings on Care.com, which includes 97 affordable house cleaning options in the area.
Durham, North Carolina: Understanding Short-Term Rental Management Fees
In Durham, North Carolina, short-term rental management fees 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 services such as 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.
Basic services, which may only include rent collection and minimal maintenance, can be less expensive, starting at around 10%. Additionally, property owners may incur extra fees for services like cleaning, repairs, or design enhancements. These fees can add to the overall cost but are often necessary to maintain the property's appeal and compliance with local regulations. Understanding these fee structures is crucial for property owners to manage their investments effectively and ensure a smooth rental experience.