The short-term rental market in Johnson City, Tennessee is showing promising signs of growth, with an average occupancy rate of 51%, a daily rate of $143, and a positive outlook for the remainder of 2024 driven by increasing demand and stable revenue.
Strong Recovery in Johnson City's Short-Term Rental Market
Johnson City, Tennessee, is witnessing a robust recovery in its short-term rental market, marked by encouraging occupancy rates and stable average daily rates. As of the latest data, short-term rentals in Johnson City are averaging a 51% occupancy rate, indicating a healthy demand for vacation properties in the area.
The average daily rate for these rentals stands at $143, contributing to a monthly revenue of approximately $14,821. This performance is bolstered by the overall growth in rental demand and the strategic use of platforms like Airbnb and Vrbo, where the majority of listings are concentrated. With summer bookings showing substantial growth and demand outpacing supply, the outlook for the remainder of 2024 looks promising for property owners in Johnson City.
Short-Term Rental Regulations in Johnson City, Tennessee for 2024
General Requirements
- Business License: Short-term rental operators must hold a valid city and county business license.
Taxes
- Sales Tax: Operators must collect and remit state sales tax (7%) and local sales tax. In Johnson City, the local sales tax rates vary depending on the county:
- Washington County: 2.5%
- Sullivan County: 2.25%
- Carter County: 2.75%
Total tax percentages range from 16.25% to 16.75% depending on the county.
Occupancy Tax: Short-term rental hosts are responsible for collecting and remitting the city’s 7% Hotel/Motel Transient Occupancy Privilege Tax.
Safety and Compliance
- Liability Insurance: While not specific to Johnson City, statewide regulations require liability insurance of at least $500,000 unless provided by the marketplace.
- Safety Equipment: Properties must have fire sprinklers, smoke alarms, and carbon monoxide alarms, although specific enforcement details in Johnson City are not outlined.
Zoning and Permits
- No Land Use Regulations: As of the current information, Johnson City does not have specific land use regulations for short-term rentals such as Airbnb or VRBO.
Other Requirements
- Compliance with State Laws: Operators must comply with statewide short-term rental regulations, including maintaining appropriate safety equipment and adhering to maximum occupancy standards.
Collection and Remittance of Taxes
- Direct Collection and Remittance: Short-term rental unit providers who do not use a marketplace must collect and remit local occupancy taxes directly to the appropriate local jurisdiction.
Top Neighborhoods Generating Airbnb Revenue in Johnson City, Tennessee
1. Downtown Johnson City
- Appeal: Downtown Johnson City is highly appealing due to its central location, proximity to key attractions like Founders Park, Tweesie Trail, and various restaurants. Rentals such as the "Downtown Loft Apartment" and "Downtown Modern Chic On Main" are highly rated for their location, cleanliness, and modern amenities.
2. Tree Streets
- Appeal: The Tree Streets area is favored for its historic charm, beautiful tree-lined streets, and close proximity to East Tennessee State University (ETSU) and downtown Johnson City. Properties like the "Apartment in Tree Streets" and "Luxurious Studio Downtown Tree Streets" are popular for their quiet and cozy atmosphere, along with easy access to local dining and breweries.
3. North Johnson City
- Appeal: This area is attractive for its quiet and comfortable homes, making it ideal for travel professionals and longer-term stays. The "Sweet Seclusion in the Heart of North Johnson City" is a favorite among guests due to its well-stocked kitchen, private parking, and peaceful environment, all while being centrally located near major highways and local amenities.
4. Boone Lake Area
- Appeal: The Boone Lake area is popular for its waterfront and lake-access properties. Rentals like the "Boone Lake Condo" and "Lakefront Sunrise Deck w/ Boat Slip" offer amenities such as fully stocked kitchens, private bathrooms, and access to lake activities, making them appealing for families and those looking for a relaxing getaway.
5. Jonesborough
- Appeal: Jonesborough, while technically a separate town, is often considered part of the broader Johnson City area. It attracts guests with its unique one-bedroom apartments and homes, such as the "Unique 1 Bedroom Apartment In The Heart Of Downtown Jonesborough," which offer fully equipped kitchens, patios, and on-site parking, making them ideal for families and groups.
These neighborhoods are highly sought after due to their combination of central locations, modern amenities, and access to various outdoor and cultural activities, making them appealing to a wide range of guests.
Furnishing and Design Tips for an Inviting Airbnb in Johnson City, Tennessee
Define Your Property's Aesthetic
- Align your furniture and decor with the local style, which often blends rustic charm and modern convenience. Incorporate elements like farmhouse-style designs, warm color palettes, and reclaimed wood furniture to reflect Johnson City's unique character.
Focus on Functionality and Comfort
- Ensure that your furnishings are both stylish and practical. Invest in comfortable seating, luxury bedding, and well-equipped kitchens to meet guests' expectations for comfort and convenience.
Highlight Local Culture
- Incorporate local craftsmanship and unique art pieces into your decor to create a personalized and authentic experience for guests. This can include local art, crafts, and decorative items that resonate with the area's culture.
Utilize Outdoor Spaces
- Given Johnson City's proximity to natural attractions, make the most of outdoor spaces. Include features like large decks, patios, firepits, and hot tubs to allow guests to enjoy the scenic surroundings.
Choose Quality Over Quantity
- While it's tempting to buy cheaper furniture, investing in higher-quality, statement pieces can significantly enhance the appeal of your property. These pieces, such as couches, coffee tables, and dining room tables, define the space and are worth the extra cost.
Balance Style and Budget
- Be strategic about where you splurge and where you save. Focus on key areas like the living room or dining room to create a showpiece, and use more budget-friendly options for less critical spaces.
Protect Your Furniture
- Since Airbnb properties experience high turnover, it's crucial to protect your furniture. Use durable materials, and consider using covers or protective coatings to extend the life of your furnishings.
Add Finishing Touches
- Small details like plants, stylish lighting fixtures, and cozy fireplaces can significantly enhance the ambiance of your property. These elements help create a welcoming and inviting space for guests.
Consider Seasonal and Local Themes
- Tailor your decor to reflect seasonal changes and local events. For example, incorporate winter-themed decor during the colder months or highlight local festivals and attractions through your decor choices.
Discover Johnson City, Tennessee: Local Attractions and Insider Tips
Outdoor Adventures
- Appalachian Caverns:
- Explore a historic cave system with guided tours, including the adventurous Wild Tours that involve climbing and spelunking.
Enjoy a consistent year-round temperature, making it a great escape from any weather.
Buffalo Mountain Park:
- Hike and bike through 725 acres of scenic Smoky Mountains, featuring unique mushroom and plant varieties.
Climb to the top for a panoramic view from the fire tower.
Warriors' Path State Park:
Engage in hiking, biking, fishing, swimming, and disc golf in this popular park.
Tweetsie Trail:
- A smooth crushed gravel trail perfect for cycling, walking, or running, connecting Johnson City to Elizabethton.
Festivals and Community Events
- Meet the Mountains Festival:
A free festival showcasing Northeast Tennessee’s outdoor recreation, with activities like ziplining, mountain biking, and live music. Emphasizes sustainability with educational stations.
Blue Plum Festival:
- Held in June, this festival features music, crafts, and an “Urban Art Throwdown” with graffiti artists painting contemporary murals.
Cultural and Historical Sites
- Tipton-Haynes State Historic Site:
Experience an Appalachian 'slice of life' from the late 1700s, with historical reenactments and structures dating back nearly 200 years.
Sycamore Shoals State Historic Area:
Learn about pivotal historic moments, including the first democratic government and the largest real estate transaction in history.
Gray Fossil Site and ETSU’s Museum of Natural History:
- Discover ancient bones and fossils, and enjoy interactive learning modules and science experiments at the Hands-On Museum.
Downtown Johnson City
- Johnson City Visitor Center:
A brand-new, innovatively designed visitor center with interactive elements, including an immersive nature experience.
Founders Park:
Enjoy beautiful scenery, public art, and the Phil Pindzola Biennial Sculpture Exhibition. The park connects to the Johnson City Public Library.
Public Art:
- Stroll through downtown to see colorful murals and thoughtful installations courtesy of the Johnson City Public Art Committee.
Dining and Nightlife
- Yee-Haw Brewing Company:
Relax with craft beers and enjoy delicious tacos from the adjacent White Duck Taco Shop. Features indoor and outdoor seating areas.
Cootie Brown’s:
- A locally owned restaurant offering an eclectic menu, gourmet fire-roasted pizza, tamales, steaks, salads, and sandwiches.
Family-Friendly Activities
- Hands On Regional Museum:
A museum with hands-on activities, workshops, and special events. Includes a fossil dig site tour and the World’s Most Powerful Musical Bi-Polar Tesla Coil.
Wallabies:
An indoor play space with inflatable slides, playgrounds, and obstacle courses. Ideal for kids’ parties and family fun.
Rotary Park:
- Features a new splash pad, playgrounds, pavilions, and walking trails through the forest. Great for both kids and adults.
Shopping
- The Mall at Johnson City:
- An indoor mall with a variety of retail stores, a food court, and regular events and activities.
By sharing these attractions and insider tips, you can help your guests make the most of their visit to Johnson City, Tennessee.
Practical Tips to Run a Successful Short Term Rental Business in Johnson City, Tennessee
To ensure the success and smooth operation of a short-term rental business in Johnson City, Tennessee, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform guests about noise regulations and quiet hours through clear communication in the listing and a digital or physical house manual. This helps in maintaining a respectful environment for both guests and neighbors, adhering to local noise ordinances.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should cover everything from appliance usage to emergency contact details, ensuring guests have a seamless and informed 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 entrance and any specific steps they need to follow.
Parking Instructions
Include detailed parking instructions with photos in the house manual or welcome message. This helps guests understand where to park, how to access parking areas, and any specific rules or restrictions, reducing potential confusion or issues.
By implementing these strategies, you can enhance guest satisfaction, reduce potential issues, and ensure your short-term rental property in Johnson City, Tennessee, operates efficiently and profitably.
Here is a brief list of house cleaning providers in Johnson City, Tennessee:
House Cleaning Services
Green Meadow Cleaning
- Provides professional house cleaning services in Johnson City, Blountville, Kingsport, Piney Flats, and surrounding areas.
- Offers recurring cleaning, deep cleaning, and move cleaning services.
- Fully bonded and insured, with high-quality standards and qualified staff.
Clean Residential Services, Inc.
- Serves the entire Tri-Cities Area including Kingsport, Bristol, and Johnson City.
- Offers high-quality house cleaning with premium cleaning solutions and hospital-grade disinfectants.
- Insured, bonded, and licensed, with a focus on customer satisfaction and no contract requirements.
Green House Cleaning Services
- Specializes in all-natural cleaning products, avoiding toxic chemicals like bleach and ammonia.
- Serves Johnson City, Kingsport, Bristol, and surrounding areas.
- Offers flexible cleaning plans and prices to fit various lifestyles and budgets.
Appalachian Maid Services, LLC
- Provides thorough cleaning services, including dusting, wiping, sanitizing, and vacuuming.
- Offers additional services such as linen change, window cleaning, laundry, and move-in/move-out cleaning.
- Operates Monday through Friday and has a clean home guarantee.
Short-Term Rental Management Fees in Johnson City, Tennessee: A Guide to Service-Level Costs
In Johnson City, Tennessee, property owners of short-term rentals can expect management fees to range from 10% to 30% of the rental revenue, depending on the scope of services provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing across multiple platforms, dynamic pricing, and maintenance, typically falls on the higher end of this spectrum, often between 20% to 30% of the rental income.
For more basic services, such as managing booking channels or limited customer service, fees can be lower, usually ranging from 10% to 15% of the revenue. Additionally, property owners may incur separate fees for services like cleaning, repairs, or design, which are often billed at a flat rate or on an a la carte basis. Understanding these fee structures is crucial for property owners to maximize their revenue while ensuring their short-term rentals are efficiently managed.