Airbnb & VRBO Performance in Gulf Shores Alabama.

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Gulf Shores, Alabama: Airbnb & VRBO Vacation Rental Market Overview

The short-term rental market in Gulf Shores, Alabama, is performing strongly, with high occupancy rates, average daily rates of $380, and monthly revenues of $51,192, despite some minor fluctuations due to post-pandemic travel shifts and seasonal factors.

Market overview

Thriving Short-Term Rental Performance in Gulf Shores, Alabama

Gulf Shores, Alabama, continues to shine as a top destination for short-term rentals, showcasing robust performance metrics. The city boasts an average occupancy rate of 58%, highlighting the consistent demand for vacation rentals in the area.

In terms of revenue, properties in Gulf Shores are generating significant income, with an average daily rate of $380 and a monthly revenue of $51,192. This strong financial performance is a testament to the area's allure, particularly for beach enthusiasts and those seeking a homey feel over traditional hotel stays.

Despite some market adjustments and post-pandemic travel shifts, luxury properties and those with strong amenities in Gulf Shores remain resilient, attracting high-end travelers and maintaining steady occupancy and revenue levels. This positive trend underscores Gulf Shores' status as a prime location for short-term rental investments.

Short Term Regulations

Short-Term Rental Regulations in Gulf Shores, Alabama for 2024

Business License Requirements

  • All property owners must obtain a business license to operate a short-term rental within the city’s corporate limits or police jurisdiction.
  • The business license application requires detailed information including property type, owner information, local emergency contact details, and estimated annual gross income.
  • The license costs $45 for short-term rentals and must be renewed annually by December 31st, with renewals becoming delinquent after January 31st.

Safety Inspections

  • Properties must undergo a safety inspection every three years to ensure compliance with safety standards.

Lodging Tax

  • Short-term rental owners must pay a combined lodging tax:
  • 4% to the State of Alabama
  • 2% to Baldwin County
  • 9% to the City if located in the corporate limits, or 4.5% if located in the police jurisdiction
  • Total tax rate: 15% within the corporate limits, 10.5% within the police jurisdiction.

Application and Documentation

  • The application process involves submitting required documents, including a copy of the driver's license, local emergency contact information, and other specified materials.
  • The application is reviewed by Revenue, Planning & Zoning, and the Fire Marshal for completeness and compliance.

Zoning and Compliance

  • Properties must comply with local zoning laws and regulations. Special permits may be required in certain areas.

Occupancy and Noise Regulations

  • There are specific occupancy limits and noise regulations:
  • Quiet hours are enforced from 10 PM to 7 AM, with fines ranging from $50 to $500 for violations.

Additional Requirements

  • Designation and maintenance of a local emergency contact by the licensee is mandatory.
  • Collection and remittance of lodging tax are required.

By adhering to these regulations, short-term rental property owners in Gulf Shores can ensure their operations are legally compliant and successful.

Neighborhood Performance

Top Neighborhoods Generating Airbnb Revenue in Gulf Shores, Alabama

1. West Beach

  • Appeal: West Beach is highly sought after due to its central location, offering easy access to various attractions such as the Alabama Gulf Coast Zoo, Tiki’s Mini Golf, and Alabama Gulf State Park. Properties here often feature stunning Gulf views, modern amenities, and private decks for enjoying beach afternoons.
  • Amenities: Many rentals include upscale decor, fully furnished kitchens, and deeded beach access. The area is popular for families, friends, and honeymooners looking for a luxurious beach experience.

2. Gulf Front (Downtown Gulf Shores)

  • Appeal: This area is renowned for its direct beach access and proximity to popular spots like The Hangout, beach volleyball courts, and numerous restaurants. Guests love the convenience and the breathtaking views of the Gulf of Mexico from high-rise condos and beachfront properties.
  • Amenities: Rentals often include private balconies, outdoor pools, BBQ areas, and modern kitchens. The vibrant atmosphere and walking distance to various activities make it a favorite among guests.

3. Crystal Tower Area

  • Appeal: Located in the heart of Gulf Shores, this area is known for its high-rise condos offering spectacular views of the Gulf. Guests appreciate the extensive amenities such as swimming pools, jacuzzis, saunas, spas, fitness centers, and tennis courts.
  • Amenities: Properties here are highly rated for their luxurious amenities and convenient location, making them ideal for families and groups seeking a comprehensive beach vacation experience.

4. Surf Style Island Market Area

  • Appeal: This neighborhood is attractive due to its proximity to Surf Style Island Market and other local amenities. Guests enjoy the convenience of being close to shopping, dining, and beach activities while still having access to peaceful beachfront condos.
  • Amenities: Rentals in this area often include fully stocked kitchens, outdoor grilling facilities, and access to swimming pools and spas.

5. Dolphin Villas Area

  • Appeal: Located centrally, Dolphin Villas offer easy access to public beaches, OWA (The Park at OWA), Water Village, and other local attractions. Guests appreciate the peaceful atmosphere and the convenience of being close to restaurants and shopping.
  • Amenities: Properties here typically feature outdoor pools, BBQ areas, and fully equipped kitchens, making them suitable for families and groups looking for a relaxed yet accessible beach vacation.

These neighborhoods are highly appealing due to their combination of prime locations, luxurious amenities, and easy access to various beach activities and local attractions.

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Design Tips

Tips for Furnishing and Designing an Inviting Airbnb in Gulf Shores, Alabama

1. Choose Coastal and Local-Inspired Designs

  • Opt for coastal design styles that reflect Gulf Shores' beach proximity, such as contemporary coastal, rustic farmhouse, or modern decor incorporating local artwork and traditions.

2. Select Functional and Easy-to-Clean Furniture

  • Ensure furniture is easy to clean, especially in high-traffic areas. Use leather or wipeable fabrics for upholstered items, and prefer wooden chairs over fabric ones. Apply ScotchGuard to fabrics from the start.

3. Ensure Furniture Serves a Purpose

  • Avoid unnecessary decor and furniture. Each piece should be useful and serve a purpose. For example, use cabinets under TVs for storage of essentials like sofa bed bedding and extra amenities.

4. Opt for Solid, Durable Pieces

  • Choose solid wood furniture over particle board. Ensure main furniture pieces fill the room appropriately, considering the space's dimensions and ceiling height.

5. Consider the Practicality of Multi-Functional Items

  • Use multi-functional items like sleeper sofas to maximize space, especially in smaller units. Test these items locally to ensure they are comfortable and easy to use.

6. Enhance with Mirrors and Textures

  • Use mirrors to fill walls and provide additional spaces for guests to get ready. Incorporate textures reminiscent of the outdoors to add depth to the space.

7. Mount TVs and Secure Large Items

  • Mount TVs and secure large full-length mirrors to the wall to ensure safety and a cleaner look.

8. Maintain an Uncluttered Space

  • Keep the space uncluttered and easy to clean. Avoid unnecessary accent items that could be hazardous or distracting.

9. Incorporate Local Culture and History

  • Reflect the local culture and history of Gulf Shores through your furniture and decor choices. This can include incorporating elements like Mardi Gras colors or historic architectural styles.

10. Ensure Outdoor Spaces are Inviting

  • If your property includes outdoor spaces, make them inviting with amenities like private pools, outdoor seating areas, and access to beach equipment. These features can significantly enhance the guest experience.
Insider Tips

Discover the Best of Gulf Shores, Alabama: Local Attractions and Insider Tips

Local Attractions

Nature and Outdoor Activities

  • Gulf State Park: Explore six distinct ecosystems, hike the Hugh S. Branyon Backcountry Trail, enjoy water sports like paddleboarding and kayaking, and visit the Nature Center. Don't miss the Activities Calendar for guided hikes, pickleball, and other events.
  • Little Lagoon: A prime spot for fishing and kayaking, with a picturesque pier for leisurely strolls and birdwatching.
  • Wade Ward Nature Park: Part of the Alabama Coastal Birding Trail, where you can spot alligators and otters.

Zoos and Wildlife

  • Alabama Gulf Coast Zoo: Interact with over 300 animals and 199 sub-species, including primates, giraffes, bears, and smaller animals like sloths and lemurs. Note the various upcharge opportunities for closer animal encounters.
  • Alligator Alley: Home to 700 alligators, with feeding shows and the option to feed the alligators yourself.

Historical and Educational Sites

  • Fort Morgan: Dive into history with a visit to this historic fort, offering insights into its role in various conflicts.
  • USS Alabama Battleship Memorial Park: Explore the USS Alabama, USS Drum submarine, and the Aircraft Pavilion, which honors fallen heroes.

Family-Friendly Fun

  • Waterville USA: A waterpark with attractions like the Gold Rush and The Great White, along with escape rooms and other dry activities.
  • Tropic Falls at OWA: A combination of an amusement park, indoor water park, and outdoor water park, featuring a big roller coaster and various other rides.
  • The Wharf at Orange Beach: A shopping and dining destination with a marina, entertainment options, and a Ferris wheel.

Beach and Water Activities

  • Dolphin Cruises: Enjoy dolphin tours that offer glimpses of dolphins, sea turtles, and the stunning coastal scenery. Popular options include the Alabama Gulf Coast Dolphin Cruise and the Orange Beach Dolphin Eco Boat Tour.

Insider Tips

Seasonal Considerations

  • Waterville USA: This waterpark is seasonal, operating primarily during the summer months. Plan your visit accordingly.

Local Favorites

  • Surf Shops and Beach Gear: Visit surf shops near the beach for all your beach essentials and enjoy amenities like giant splash pads for kids.

Hidden Gems

  • Bamahenge: An Alabama version of Stonehenge, a free and unique attraction easily found on Google Maps.

Dining and Shopping

  • The Wharf at Orange Beach: Besides shopping, enjoy dining and entertainment options in this vibrant area.

Activities for All Ages

  • Mini Golf: Gulf Shores has several mini golf courses, including Zooland Mini Golf, Beachside Mini Golf, and Pirates Island Adventure Golf.

By sharing these attractions and insider tips with your guests, you can help them make the most of their visit to Gulf Shores, Alabama.

Practical Tips

Practical Tips to Run a Successful Short Term Rental Business in Gulf Shores, Alabama

To ensure a smooth and enjoyable experience for both you and your guests in Gulf Shores, Alabama, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about the quiet hours, which are from 10 PM to 7 AM in Gulf Shores, to avoid any fines ranging from $50 to $500. Clearly communicate these rules in your listing and through a welcome message to ensure compliance.

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 likelihood of issues during their stay.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos of the lock and any other relevant entry points.

Parking Instructions

Include detailed parking instructions with photos to help guests understand where and how to park. This is particularly important in areas with specific parking regulations, ensuring that your guests do not incur fines or have their vehicles towed.

By following these tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short term rental business in Gulf Shores.

Local Vendors

Here is a brief list of house cleaning, repair, and maintenance providers in Gulf Shores, Alabama:

House Cleaning Services

  • Sweet Home Cleaning Service: Offers detail-oriented regular maintenance house cleaning, deep cleaning, one-time services, and commercial cleaning in Gulf Shores and surrounding areas.
  • Paradise Services: Provides residential, condo, and commercial janitorial cleaning, deep cleaning, carpet cleaning, tile/grout cleaning, and maintenance services in Gulf Shores and Orange Beach.
  • Turno's Vetted Cleaners: Includes cleaners like Crystal Super Cleaner, Amanda, and Isaac Super Cleaner, specializing in vacation rental cleaning services such as linen changes, laundry, and sanitizing in Gulf Shores.

Repair and Maintenance Services

  • Paradise Services: Offers routine minor maintenance (e.g., replacing air filters and light bulbs), major maintenance services (e.g., HVAC, plumbing, electrical), and repair services through in-house technicians and local contractors.
  • Premier Gulf Shores Cleaning: Provides maintenance and repair services along with vacation rental and condo cleaning in Gulf Shores and Orange Beach.

These services cover a range of needs from regular house cleaning to comprehensive maintenance and repair.

Management fees

Gulf Shores, Alabama: Understanding Short-Term Rental Management Fees

In Gulf Shores, Alabama, 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 companies, which handle comprehensive tasks such as guest communication, marketing, maintenance, and compliance with local regulations, tend to charge higher fees, often in the 20-30% range.

On the other hand, basic or partial management services, which may require more owner involvement in tasks like cleaning and maintenance, can be more cost-effective, with fees starting as low as 10-15%. Additionally, owners should be aware of potential extra fees for services like cleaning, repairs, or design, as well as payment processing fees and other miscellaneous charges that can 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 Gulf Shores 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
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Furnishing checklist

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

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)
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⇤ Airbnb Statistics for Alabama