In Folsom, California, the short-term rental market is thriving, with an average occupancy rate of 52%, a daily rate of $232, and monthly revenue of $17,658, making it a lucrative and dynamic market for hosts and investors.
Thriving Short-Term Rental Market in Folsom, California
Folsom, California, is experiencing a robust and vibrant short-term rental market, driven by its appealing tourist attractions and strategic location. The city boasts an average occupancy rate of 52% for its short-term rentals, indicating a strong and consistent demand. The average daily rate for these rentals stands at $232, contributing to a monthly revenue of approximately $17,658 per property.
This performance is further enhanced by the city's peak season, which begins in late spring and extends through the summer, driven by outdoor activities and events like the Folsom Street Fair. Even during off-peak periods, local events and the holiday season provide smaller but significant spikes in demand. With well-defined regulations and a supportive local environment, Folsom remains an attractive and profitable destination for short-term rental investors and hosts.
Short-Term Rental Regulations in Folsom, California for 2024
Licensing and Registration
- City Business License Certificate: Required for operating a short-term rental in Folsom.
- Short-Term Rental Permit: Essential for legal operation; involves submitting an application, paying the required fee, and providing necessary documentation such as proof of ownership or a lease agreement, and a floor plan of the rental unit.
Taxation
- Transient Occupancy Tax (TOT): Hosts must register with the city to collect and remit TOT, which is set at 8% of the rent charged to transient guests. This tax is typically collected quarterly.
Occupancy and Guest Limits
- Maximum Occupancy: A maximum of two guests per bedroom, plus two additional guests.
Minimum Stay Requirements
- Minimum Stay: A minimum stay of three nights is required in certain areas.
Neighborhood and Community Regulations
- Noise Mitigation: Requirements for noise mitigation to prevent disruptions in neighborhoods.
- Waste Management: Requirements for proper waste management.
- Outdoor Gatherings and Events: Prohibitions on outdoor gatherings and events.
Property and Safety Standards
- Proof of Ownership or Lease Agreement: Hosts must provide proof of ownership or a lease agreement to demonstrate their legal right to rent out the property.
Compliance and Enforcement
- Local Contact Requirements: Not explicitly mentioned for Folsom, but hosts are generally responsible for ensuring compliance with city regulations and addressing any issues that may arise during the rental period.
- Penalties and Fines: Non-compliance can result in penalties and fines, although specific amounts are not detailed in the Folsom regulations.
Top Neighborhoods for Airbnb Revenue in Folsom, California
Neighborhoods Generating High Airbnb Revenue
1. Rancho Diablo
- Appeal: Rancho Diablo is one of the most frequently booked neighborhoods in Folsom. It offers a mix of modern homes and convenient access to local amenities, making it attractive for families and business travelers alike.
- Amenities: Close proximity to shopping centers, restaurants, and recreational facilities.
2. American River Canyon
- Appeal: This neighborhood is popular due to its scenic views and proximity to the American River. Guests can enjoy outdoor activities such as hiking, biking, and water sports.
- Amenities: Scenic trails, river access, and a tranquil environment.
3. Briggs Ranch
- Appeal: Briggs Ranch is another highly sought-after area with its well-maintained homes and family-friendly atmosphere. It is close to schools, parks, and community facilities.
- Amenities: Good schools, community parks, and a safe neighborhood environment.
Why These Neighborhoods Are Appealing
- Location and Accessibility: These neighborhoods offer easy access to Folsom's key attractions, including the American River, local parks, and shopping centers.
- Amenities and Services: Many properties in these areas come with amenities such as dedicated workspaces, pools, BBQ grills, and Wi-Fi, making them suitable for a variety of guests.
- Family-Friendly and Pet-Friendly Options: A significant number of rentals in these neighborhoods are family-friendly and pet-friendly, catering to a broad range of travelers.
- Regulatory Compliance: Folsom's clear and enforceable short-term rental regulations ensure that neighborhoods remain well-maintained and respectful of local residents, which enhances the overall guest experience.
These factors combined create an appealing environment for guests, contributing to the high Airbnb revenue generated in these neighborhoods.
Creating an Inviting Airbnb in Folsom, California: Design and Furnishing Tips
1. Combine Functional and Aesthetic Window Treatments
Layering window treatments such as Roman shades and full-length drapes can add both beauty and functionality to your space. For example, use cascading accordion-folding Roman shades to allow natural light and pair them with floral drapes for a touch of elegance.
2. Use Local Inspiration for Art and Decor
Draw inspiration from local artwork and architectural features to create a unique and cohesive design. For instance, use bold graphic fabrics and geometric motifs to echo the styles found in Folsom's modern sitting rooms.
3. Incorporate Cozy and Inviting Furniture
Choose furniture pieces that create a warm and welcoming environment. Consider using cozy chairs, inviting sofas, and floating cube ottomans that double as extra seating for guests. Tailored window treatments and statement lamps can add the perfect finishing touches.
4. Highlight Architectural Features
Make the most of architectural features such as window nooks by adding custom valances, cushions, and coordinating pillows. These elements can add warmth and create cozy alcoves within the home.
5. Add Dynamic Focal Points
Create a dynamic focal point in entryways or living areas with custom framed prints, symmetrical grid arrangements, or unique accessories like hand-woven lamp shades. These elements can add a touch of sophistication and personal style to the space.
6. Utilize Accessories to Showcase Personality
Outfit walls with shelves to showcase personal accessories such as framed photos, vases, bowls, and other collectibles. This can make the space feel more personal and inviting to guests.
7. Framing Your View with Café Curtains
Use café curtains over kitchen counters and sinks to allow natural light and add a light, airy feel. These can also highlight ornate hardware and be paired with coordinating valances for a cohesive look.
8. Soft Shades for Patio Doors
Install Roman shades tailored for patio doors to provide privacy while maintaining a fashionable and customizable look. These shades can be drawn or lowered as needed and can feature fabulous designer fabrics.
By incorporating these tips, you can create an Airbnb in Folsom, California, that is not only inviting but also reflective of the city's unique style and charm.
Local Attractions and Insider Tips for Visiting Folsom, California
Outdoor Activities
Folsom Lake
- A must-see gem offering panoramic views of the Sierra-Nevada foothills. Enjoy hiking, biking, running, camping, fishing, picnicking, horseback riding, water-skiing, and boating.
- Access to the Folsom Lake State Recreation Area is open year-round at multiple locations.
Lake Natoma
- Perfect for kayaking and paddleboarding, with scenic views and the possibility of spotting a bald eagle.
American River Bike Trail
- A 32-mile trail from Folsom to Sacramento, ideal for cyclists and pedestrians. Access is free and located throughout Folsom.
Family-Friendly Attractions
Folsom City Zoo Sanctuary
- A unique zoo that does not breed, sell, or trade animals. It focuses on the welfare of animals that cannot be released into the wild.
- Located next to the Folsom City Lions Park, which has play areas for kids and a picnic-friendly environment.
SeaQuest
- An interactive aquarium where kids can get up close and personal with various marine and land animals.
Folsom Valley Railway
- The only 12-gauge railroad left in the United States, offering a fun ride for train enthusiasts and kids.
Historical and Cultural Sites
Historic Sutter Street
- Reflects the city's history dating back to the Gold Rush. Enjoy unique shops, galleries, tasting rooms, and live entertainment.
- Visit the Folsom History Museum and Pioneer Village to explore gold panning, blacksmithing, and agriculture exhibits.
Folsom Powerhouse State Historic Park
- A National Historic Landmark that operated as a hydro-electric powerhouse until 1952. It features the longest overhead run of electricity in the country at the time of its opening.
Folsom Prison Museum
- Learn about the history of Folsom Prison, which was established in 1880 and is known for its significant role in the region's history.
Shopping and Dining
Palladio
- An outdoor shopping and dining complex with stores like Barnes and Noble, Nordstrom Rack, and various dining options including Chicago Fire and Iron Horse Tavern.
Folsom Premium Outlets
- Offers 80 stores in an outdoor shopping environment, featuring designer and name-brand outlets like Michael Kors, Gap, Under Armour, and Nike.
Gekkeikan Sake
- Visit the state-of-the-art sake brewing facility and learn about the history of sake production that dates back over 360 years.
Insider Tips
Local Events
- Check out the events and festivals on Historic Sutter Street, which include craft fairs, live entertainment, and seasonal celebrations.
Cycling
- Take advantage of Folsom's extensive recreational trail system, including the Humbug-Willow Creek Trail and the Johnny Cash Trail.
Aquatic Activities
- Visit the Sacramento State Aquatic Center for a variety of aquatic activities year-round.
Unique Experiences
- For chocolate lovers, consider visiting local chocolatiers in the area for a sweet treat.
By providing these recommendations, your guests can enjoy a well-rounded and memorable experience in Folsom, California.
Practical Tips to Run a Successful Short Term Rental Business in Folsom, California
To ensure a smooth and successful short-term rental business in Folsom, California, several practical tips can be implemented. First, it is crucial to adhere to the city's noise regulations by informing guests about quiet hours through clear communication in both digital and physical house manuals. These manuals should also include essential instructions, Wi-Fi passwords, and other important details to enhance the guest experience.
A simplified check-in process can be achieved by utilizing smart locks, which eliminate the need for physical key exchanges and provide guests with convenient access to the property. Additionally, providing detailed parking instructions accompanied by photos can help avoid confusion and ensure a hassle-free arrival.
By addressing these aspects, hosts can not only comply with local regulations but also enhance guest satisfaction, leading to positive reviews and repeat bookings. This holistic approach to managing a short-term rental property in Folsom helps balance the needs of both hosts and guests, contributing to a successful and sustainable business.
Here is a brief list of house cleaning providers in Folsom, California:
House Cleaning Services in Folsom, CA
Bright & Sparkly Cleaning Service
- Specializes in residential, commercial, and move-in/move-out cleaning.
- Uses natural products and offers single cleaning or recurring services.
- Contact: (916) 618-4628 or (916) 969-3947.
The Maids
- Offers various cleaning services including 22-Step Cleaning Process, move-in/move-out, and seasonal cleaning.
- Focuses on cleaning for health and has the endorsement of Mr. Clean®.
- Contact: (916) 790-3817.
Johnny Sparkles Cleaning Service
- Provides residential house cleaning and specialized services such as laundry, windows, carpets, and appliance cleaning.
- Serving the greater Folsom area since 2001.
- Contact: 916-276-4280.
Molly Maid North Central Sacramento
- Offers customized cleaning plans with no contracts and a 24-hour warranty.
- Provides a wide variety of house cleaning services using efficient methods.
- Contact: For a free estimate.
Additional Providers
- Various individual and small-scale house cleaning services listed on Care.com, with rates starting at $21.72/hr and an average experience of 4 years.
Short-Term Rental Management Fees in Folsom, California: A Range of Services and Costs
In Folsom, California, the fees for managing short-term rentals, such as those listed on Airbnb and VRBO, can vary significantly based on the level of service provided. Full-service management, which includes comprehensive tasks like guest communication, marketing, and maintenance, typically ranges from 20% to 30% of the rental revenue. For instance, companies like GoSummer charge starting at 20% of the booking revenue, excluding cleaning fees.
On the other hand, basic services that may only include listing and tenant placement could be less expensive, though specific percentages are not as commonly outlined. Additional fees may also be incurred for services such as cleaning, repairs, or design enhancements to the property. Moreover, hosts must comply with local regulations, including the collection and remittance of an 8% Transient Occupancy Tax (TOT) on the rent charged to transient guests.