Airbnb & VRBO Performance in Fairbanks Alaska.

Short-Term Rental Regulations in Fairbanks, Alaska for 2024

Licensing Requirements

• Fairbanks North Star Borough Business License:
• All businesses, including short-term rentals, must obtain a general business license from the Fairbanks North Star Borough.
• The license application requires basic information about the business, owner, and location.

• Licenses must be renewed annually.

• State of Alaska Business License:

• In addition to the borough license, short-term rental operators must obtain a state business license from the Alaska Department of Commerce, Community, and Economic Development.
• This license is required for any business activity generating income in Alaska, including rental income from short-term rentals.

Conditional Use Permit

• Conditional Use Permit for Tourist Homes:
• Short-term rentals are classified as "tourist homes" and are permitted as conditional use in certain zoning districts.
• A completed application for a conditional use permit must be submitted to the Borough's Department of Community Planning.
• Required documents include a detailed site plan and a floor plan of the rental unit.

Required Documents

• Business License Application Forms:
• Completed application forms for both the Fairbanks North Star Borough and State of Alaska business licenses.

• Forms require basic information about the business, owner, and location.

• Proof of Property Ownership:

• A copy of the deed or property tax bill showing the applicant as the owner.

• Site and Floor Plans:

• A detailed site plan showing the property boundaries, structures, parking areas, and other relevant features.
• A floor plan of the rental unit indicating the number and location of bedrooms, bathrooms, and other living spaces.

Tax Obligations

• Room Tax Collection:
• Register with the Fairbanks North Star Borough to obtain a room tax account number.
• Collect and remit an 8% room tax on rental income.

Compliance and Enforcement

• Strict Enforcement:
• The Fairbanks North Star Borough is known for strict enforcement of short-term rental regulations, including monitoring listings and ensuring compliance with licensing, permitting, and zoning requirements.
• Non-compliance can result in fines and legal action.

Other Requirements

• Safety and Zoning Compliance:
• Ensure the rental property meets local safety standards and zoning requirements.
• Familiarize yourself with occupancy limits, parking requirements, and other applicable regulations.

Top Neighborhoods for Airbnb Revenue in Fairbanks, Alaska

1. Downtown Fairbanks

• Appeal: Centrally located, these rentals offer easy access to restaurants, shops, and major attractions. Properties like the "Cozy, quiet centrally located one bedroom" and "Bright, Newly Remodeled & In the Heart of Fbks" are highly rated for their proximity to everything Fairbanks has to offer.

2. North Pole

• Appeal: Known for its whimsical charm, North Pole attracts guests with its unique themed rentals such as "Santa's Home Away from Home" and "The Last Frontier Cabin •Modern•Private•Xtra Clean". These properties are favored for their festive atmosphere and proximity to local diners and attractions.

3. Goldstream Valley

• Appeal: This area is popular for its serene and natural settings. Cabins like "Raven Speak Home Goldstream Valley" and "Cute Cozy Cabin" offer a peaceful getaway with easy access to hiking trails, bird sanctuaries, and excellent Northern Lights viewing opportunities.

4. University of Alaska Fairbanks (UAF) Area

• Appeal: Rentals near UAF, such as the "Condo with garage just minutes away from UAF" and "Modern design close to UAF, cafes & farmers market", are appealing due to their proximity to the university, cafes, and the farmers market. This area is ideal for both students and visitors.

5. Chena River Area

• Appeal: Properties like the "Exclusive Riverfront Cottage" and "More than a Cabin on the Chena River" are highly sought after for their scenic river views, access to restaurants, and the opportunity to enjoy the Midnight Sun or Northern Lights from a riverside location.

These neighborhoods are highly appealing due to their combination of central location, natural beauty, and access to local attractions, making them prime areas for generating significant Airbnb revenue in Fairbanks, Alaska.

Furnishing and Design Tips for an Inviting Airbnb in Fairbanks, Alaska

Understanding the Local Aesthetic

• Reflect Alaskan Charm: Incorporate rustic and cozy furnishings, such as log cabin-inspired pieces, to bring a sense of Alaskan charm. Use natural materials and earth tones to complement the surroundings.

Choosing the Right Furniture

• Durable and Easy to Clean: Select furniture that is easy to maintain and clean. Opt for sturdy pieces, such as sofas with washable covers, and avoid real or faux leather.
• Functional and Space-Saving: Use space-saving furniture like sofa beds, folding tables, and ottomans with hidden storage compartments to maximize the use of space.

Enhancing Guest Comfort

• Comfortable Bedding: Invest in solid beds with at least 8-inch thick mattresses, preferably memory foam for durability. Use mattress covers to extend the life of the mattress.
• Cozy Interiors: Include features like fireplaces and hot tubs, especially for Northern Lights viewing, to create a welcoming atmosphere during colder months.

Designing for the Local Experience

• Outdoor and Nature-Focused: Provide outdoor spaces, waterfront views, or proximity to nature trails to enhance guests' outdoor experiences. Consider properties with clear views of the Northern Lights.
• Local Art and Decor: Incorporate local art and themed decor to celebrate Alaskan culture and create memorable stays.

Practical Amenities

• Full Kitchens and Living Areas: Ensure the property has a full kitchen and spacious living areas to allow guests to enjoy extended stays with a home-like environment.
• Essential Appliances: Equip the kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Provide amenities such as hair dryers, basic toiletries, and a first-aid kit.

Layout and Lighting

• Optimize Layout: Measure the rooms and arrange furniture to maximize space and natural light. Avoid blocking natural light sources and ensure there is plenty of space to move around.
• Use Mirrors: Utilize mirrors to make the space feel bigger and brighter.

Accessibility and Storage

• Accessibility Features: Consider making your Airbnb accessible to guests with disabilities by including ramps, wide doorways, and grab bars in bathrooms.
• Smart Storage: Use beds with drawers, wall hooks, pegboards, and stackable containers to provide guests with designated spots for their personal items.

Seasonal Considerations

• Seasonal Updates: Plan furniture updates during the off-season or short gaps between bookings to minimize disruption to guests.
• Seasonal Amenities: Offer amenities tailored to the season, such as radiant heated floors for winter and outdoor spaces for summer.

Discover Fairbanks, Alaska: Local Attractions and Insider Tips

Local Attractions

Natural Wonders and Outdoor Adventures

• Chena River State Recreation Area: Explore hiking trails like Angel Rocks, Granite Tors, and the extensive Chena Dome trail. This area offers stunning views of the surrounding wilderness and the Chena River.
• Northern Lights: Fairbanks is one of the best places to witness the aurora borealis, visible on average more than 200 days per year. However, they are not visible during the summer months due to the midnight sun.

Cultural and Historical Sites

• Pioneer Park: A cultural hub with the Pioneer Museum, Gold Rush Town, and the Pioneer Air Museum. The park offers a glimpse into Alaska's history and a pleasant atmosphere for strolls.
• World Eskimo-Indian Olympics: Attend this unique event in July to experience traditional Alaska Native athletic competitions and cultural pride.

Festivals and Events

• World Ice Art Championships: Witness intricate ice sculptures created by artists from around the globe during this winter competition (February-March).
• Midnight Sun Festival: Celebrate the summer solstice with music, art, and cultural performances, enjoying nearly 22 hours of sunlight (June).
• Fairbanks Summer Arts Festival: Engage in workshops and performances in various disciplines such as music, dance, and visual arts (July).

Unique Experiences

• Gold Panning: Try your hand at gold panning in local streams and creeks, or take a gold mine tour to relive the prospecting spirit of the past.
• Dog-Sledding Tours: Experience Alaska's iconic mode of transportation with guided dog-sledding tours.

Shopping and Local Art

• Downtown Fairbanks Shopping: Visit boutique stores, art galleries, and specialty shops for Alaska artistry, Indigenous crafts, and outdoor gear. Check out local favorites like The Knotty Shop.

Insider Tips

Seasonal Activities

• Check Seasonal Hours: Many shops and attractions have varying hours depending on the season, so it's advisable to check individual websites or contact them directly for the most accurate information.

Local Guides and Tours

• Use Local Guide Services: Fairbanks-based businesses like Rod's Alaskan Guide Service and Alaska Safari Sultan Tours can help you explore remote areas and plan your adventure.

Weather and Climate

• Prepare for Extreme Weather: Fairbanks experiences unique meteorological conditions such as ice fog in winter and dense wildfire smoke in summer. Be prepared with appropriate clothing and gear.

Northern Lights Viewing

• Optimal Viewing Times: The northern lights are best viewed between September and April when the nights are dark enough. Consider booking a northern lights tour for the best viewing experience.

Local Events Calendar

• Stay Updated: Check the event calendar at Pioneer Park and other local venues to catch festivals, concerts, and performances during your stay.

By sharing these attractions and tips, you can help your guests make the most of their visit to Fairbanks, Alaska.

Practical Tips to Run a Successful Short-Term Rental Business in Fairbanks, Alaska

To ensure a smooth and enjoyable experience for both you and your guests in Fairbanks, Alaska, several practical tips can make a significant difference in the success of your short-term rental business.

Noise Regulations and Quiet Hours

Inform your guests about quiet hours to maintain a peaceful environment, especially in residential areas. Include clear noise regulations in your house manual and communicate them through your booking platform to set expectations from the outset.

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 your property easily and reduces the likelihood of misunderstandings or issues.

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 to access the property.

Parking Instructions

Include parking instructions with photos in your house manual to help guests find and use the designated parking areas without confusion. This is particularly important in areas with limited parking or specific parking regulations.

By implementing these tips, you can enhance guest satisfaction, reduce potential issues, and maintain a positive reputation for your short-term rental business in Fairbanks, Alaska.

Here is a brief list of house cleaning, repair, and maintenance providers in Fairbanks, Alaska:

HD Clean LLC

• Offers move-in and move-out cleaning services, as well as routine house cleaning and deep cleaning for residential and commercial clients.
• Services include cleaning bathrooms, kitchens, dusting, vacuuming, and disinfecting various surfaces.
• Licensed, insured, and provides free estimates.

The Alaska Cleaning Company

• Provides residential and office cleaning services, including carpet cleaning.
• Known for their integrity, quality of service, and respect for client privacy.
• Offers a quality guarantee with a triple check system to ensure thoroughness.

Rosa's Cleaning Service LLC

• Specializes in commercial and residential cleaning, including green cleaning options.
• Licensed, bonded, and insured for client protection.
• Offers 24/7 availability and customer satisfaction follow-ups.

These companies are well-regarded for their professional and thorough cleaning services in the Fairbanks area.

Fairbanks, Alaska Short-Term Rental Management Fees: A Comprehensive Guide

In Fairbanks, Alaska, management fees for short-term rentals typically range from 10% to 30% of the rental revenue, varying significantly based 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 around 20% of the rental income after deductions for taxes and other expenses.

Basic services, which might only include registration, tax compliance, and minimal oversight, may incur lower fees. Additionally, hosts may need to account for extra fees related to cleaning, repairs, and property design or furnishings, which can be billed separately or included in the overall management fee. These fees are crucial for ensuring the property is well-maintained and compliant with local regulations, such as the Fairbanks North Star Borough's business licenses and the 8% room tax.