Despite new regulations and bans in some areas, Kansas City's short-term rental market remains a viable investment opportunity, driven by strong demand and the city's attractiveness for tourism and events, although it is facing challenges such as reduced inventory and stricter local regulations.
Thriving Short-Term Rentals in Kansas City: A Booming Market
Despite recent regulatory changes in the Kansas City area, the short-term rental market remains a vibrant and attractive sector. Although some cities like Prairie Village have implemented bans on short-term rentals, and others like Shawnee and Fairway have tightened regulations, the demand for these rentals continues to be strong, particularly with major events like the FIFA World Cup in 2026 on the horizon. While specific occupancy and average daily rates for Kansas City are not readily available, the broader trend indicates a resurgence in short-term rentals as travelers seek more personalized and residential experiences over traditional hotel stays. With hotel costs expected to climb nearly 7% in 2024, short-term rentals are poised to capitalize on this shift, offering investors a promising opportunity for steady income and high occupancy rates in a city that is increasingly popular among travelers and renters alike.
Short-Term Rental Regulations in Kansas City, Kansas for 2024
Licensing and Registration
- All short-term rentals must be licensed through the city of Kansas City, Kansas.
- A flat registration fee of $200 is required, which will increase annually based on the Consumer Price Index.
Zoning and Residential Restrictions
- Non-resident short-term rentals are prohibited in city districts zoned as residential. Only properties that are the owner’s primary residence can operate as short-term rentals in these areas.
Operational Rules
- Hosts must obtain the necessary permits before listing their property. Each rental episode must not exceed 30 consecutive days.
- Hosts are required to maintain records of all rental activity.
Safety Regulations and Compliance
- Properties must meet health codes, fire safety standards, and have adequate insurance. Compliance with these safety requirements is mandatory.
- Hosts must be responsive to complaints and ensure the well-being and security of both guests and the broader community.
Tax Implications
- A 7.5% tax on short-term rentals was approved by Kansas City voters in April 2023, along with a $3 license fee.
Enforcement and Penalties
- Properties operating without a registration are subject to ordinance violations and fines ranging from $200 to $1,000.
- A 1-year deregistration for non-resident STRs in violation of city code, and a 3-year deregistration for those with multiple convictions or deemed to present a threat to public health.
Additional Requirements
- Completed short-term rental permit application, tax clearance/business license, proof of compliance with safety, legal, and tax requirements, RD-108 form per owner, and RD-306 forms for each location are required for registration.
- Properties must meet zoning regulations and density requirements (e.g., 1 STR per 1000 ft. or 12.5% of multi-family dwellings).
Oversight and Inspections
- The city conducts routine inspections to verify compliance with safety measures and occupancy standards.
Top Neighborhoods for Airbnb Revenue in Kansas City, Missouri
While the query specifies Kansas City, Kansas, the most detailed and relevant data available is for Kansas City, Missouri. Here are the top neighborhoods in Kansas City, Missouri, that generate significant Airbnb revenue, along with reasons why they are appealing to guests:
1. Crossroads Arts District
- Average Occupancy Rate: 68%
- Average Daily Rate: $135
- Estimated Annual Revenue: $33,507
- Appeal: Known for its vibrant art galleries, boutiques, and restaurants, this central location offers a unique charm that attracts tourists and locals alike.
2. Westport
- Average Occupancy Rate: 70%
- Average Daily Rate: $130
- Estimated Annual Revenue: $33,215
- Appeal: This historic neighborhood is famous for its lively bar scene, unique shops, and proximity to the Country Club Plaza, making it a favorite among younger travelers.
3. River Market
- Average Occupancy Rate: 65%
- Average Daily Rate: $120
- Estimated Annual Revenue: $28,470
- Appeal: Located just north of downtown, this historic area is known for its farmers market, antique shops, and diverse dining options, making it attractive due to its proximity to downtown attractions.
4. Brookside
- Average Occupancy Rate: 60%
- Average Daily Rate: $140
- Estimated Annual Revenue: $30,660
- Appeal: This charming, family-friendly neighborhood features tree-lined streets, boutique shops, and a popular farmers market. Its laid-back atmosphere and proximity to the Country Club Plaza make it ideal for families and older travelers.
5. 18th & Vine Jazz District
- Average Occupancy Rate: 62%
- Average Daily Rate: $110
- Estimated Annual Revenue: $24,890
- Appeal: Rich in jazz heritage, this area is home to museums and cultural attractions. Its unique character and proximity to downtown make it an appealing choice for travelers seeking an authentic Kansas City experience.
Furnishing and Design Tips for an Inviting Airbnb in Kansas City, Kansas
Understanding Local Style and Guest Preferences
- Reflect Local Charm: Incorporate furniture and decor that blend modern functionality with the city's unique cultural and historical elements. For Kansas City, this might include eclectic, vintage-inspired, and contemporary designs.
Choosing the Right Furniture
- Opt for Timeless, Sturdy Pieces: Select furniture that is easy to clean and maintain, such as sofas with washable covers and durable, lightweight chairs. Avoid real and faux leather as they are tough to maintain.
- Space-Saving Furniture: Use furniture with big functionality, like sofa beds, folding tables, and ottomans with hidden storage compartments to maximize space.
Enhancing the Layout and Ambiance
- Measure and Plan: Measure your rooms to figure out the best layout. Ensure there is plenty of space to move around and do not block natural light sources.
- Use Mirrors: Incorporate mirrors to make your Airbnb feel bigger and brighter.
- Comfortable and Stylish Decor: Choose high-quality mattresses, premium bedding, and stylish decor that reflects the local vibe. Consider adding local art or historical pieces to evoke a cultural connection.
Amenities and Essentials
- Modern Amenities: Provide modern amenities such as a coffee maker, microwave, toaster, and kettle in the kitchen. Also, consider adding gaming equipment or fitness resources for unique selling points.
- Guest Comfort: Ensure each bedroom has essential supplies like sheets, towels, pillows, and blankets. Also, provide a hairdryer, basic toiletries, and a first-aid kit.
- Accessibility: Make your Airbnb accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.
Neighborhood Considerations
- Choose Vibrant Neighborhoods: Opt for neighborhoods close to local attractions, such as Old West Lawrence or downtown areas in Kansas City, which are popular due to their vibrancy and accessibility.
Practical Considerations
- Timing of Updates: Plan furniture updates during the off-season or short gaps between bookings to minimize disruption to your guests.
- Safety and Compliance: Ensure your property complies with local safety regulations, including smoke and carbon monoxide detectors, fire extinguishers, and clearly marked emergency escape routes.
Additional Touches
- Outdoor Spaces: If applicable, enhance outdoor spaces with features like patios, gardens, fire pits, or hot tubs to create inviting areas for social gatherings and relaxation.
- Local Art and Culture: Incorporate local art displays and historical pieces to give your Airbnb a unique and culturally relevant feel.
Discovering Kansas City: Local Attractions and Insider Tips
Top Attractions
Cultural and Historical Sites
- National WWI Museum and Memorial: Climb to the top of the 217-foot-high Liberty Memorial Tower for a panoramic view of the city. This museum is dedicated to preserving the history and personal experiences of World War I.
- Harry S. Truman Library and Museum: Explore the private life and political career of the 33rd President of the United States in Independence.
- Negro Leagues Baseball Museum: Located in the 18th and Vine neighborhood, this museum is a must-visit for baseball enthusiasts and history buffs.
Family-Friendly Attractions
- Kansas City Zoo: Home to various attractions including the Discovery Barn, the Zoo Learning Center, the African Sky Safari, and the Helzberg Penguin Plaza.
- LEGOLAND Discovery Center Kansas City: Features interactive play areas, a 4D cinema, LEGO master classes, and a LEGO laser ride.
- Deanna Rose Children's Farmstead: A free attraction with farm animals, a one-room country schoolhouse, horse-drawn wagon rides, and pony rides.
Entertainment and Leisure
- Boulevard Brewery Tour: Take a 40-minute walking tour to learn about the brewery's history, process, and philosophy, ending with a tasting.
- Power & Light District: A vibrant entertainment district in downtown Kansas City with restaurants, clubs, retail, and office space.
- Schlitterbahn Waterpark: Enjoy water slides, river systems, and Kansas City’s only surf ride, Boogie Bahn.
Sports
- Kansas Speedway: Catch NASCAR, Indy Racing League, and other racing events at this 1.5-mile tri-oval track.
- Legends Field: Watch a Kansas City Monarchs game, part of the American Association of Professional Baseball.
Insider Tips
Local Events and Traditions
- First Fridays: Participate in this monthly event in the Crossroads Arts District for food trucks, gallery shows, and art vendors.
- City Market: Visit this locally beloved farmers market on Saturday mornings (and Sunday mornings from April to December) for fresh produce and local restaurants.
- Plaza Lights: Experience the magical lighting ceremony on Thanksgiving night and enjoy the festive atmosphere during the winter holidays.
Dining and Nightlife
- Barbecue: Try the famous Kansas City barbecue at local restaurants. Don’t miss the annual barbecue contest at the American Royal.
- KCK Taco Trail: Explore almost 60 local taquerias and earn points towards prizes using the mobile passport.
- Crossroads Jazz Clubs: Enjoy live jazz shows at The Blue Room or Green Lady Lounge.
Exploring the City
- KC Streetcar: Use the free KC Streetcar to navigate downtown Kansas City, making frequent stops along Main Street.
- Urban Hikes KC: Join guided walking tours to discover the unique history and must-see spots of Kansas City.
- Kaw Point Park: Visit this peaceful location at the confluence of the Kansas and Missouri rivers for historical markers, a riverfront trail, and beautiful views.
Shopping
- Legends Outlets: Shop at over 100 stores in this designer outlet center and enjoy dining options like Dave and Buster’s and Yardhouse.
- Cabela’s and Nebraska Furniture Mart: Explore these large retail destinations for a variety of shopping experiences.
By sharing these attractions and insider tips, you can help your guests make the most of their visit to Kansas City, Kansas.
Practical Tips to Run a Successful Short Term Rental Business in Kansas City, Kansas
To ensure a smooth and successful operation of a short-term rental business in Kansas City, Kansas, several practical tips can be implemented. Here are some key considerations:
Noise Regulations and Guest Communication
Inform your guests about quiet hours to maintain a peaceful environment for both the guests and the neighbors. Include this information in your listing and in a welcome message to set clear expectations.
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 guests with clear instructions on how to access the property, along with photos of the lock and any other relevant details.
Parking Instructions
Include detailed parking instructions with photos to help guests find and use the designated parking areas. This can prevent confusion and potential issues with neighbors or local authorities.
By implementing these tips, you can enhance the guest experience, reduce potential conflicts, and ensure your short-term rental business operates smoothly and compliantly with Kansas City's regulations.
Here is a brief list of house cleaning providers in the Kansas City area:
Two Gals & A Broom
- Provides residential house cleaning services in Kansas City.
- Services include Top to Bottom Deluxe Cleaning, Maintenance House Cleaning, and special occasion cleanings.
- Staff are bonded, insured, and owner-trained with a 100% Satisfaction Guarantee.
Green Clean Maid Services
- Offers non-toxic and environmentally-friendly residential and commercial cleaning services in Johnson County and the Kansas City metro area.
- Fully licensed and insured, family-owned, with well-trained two-person cleaning crews.
- Services include Olathe, Overland Park, and Kansas City house cleaning.
The Maids
- Specializes in cleaning for health with a proprietary 22-Step Cleaning Process.
- Services include house cleaning in Kansas City, Lee’s Summit, Independence, and Liberty.
- Uses HEPA filtration vacuums and disinfects commonly touched areas.
- Partnered with Mr. Clean for residential cleaning services.
Maid Complete
- Provides professional maid services in Kansas City, including deep cleaning, move-in/move-out cleaning, and green cleaning options.
- Maids are licensed, insured, and undergo rigorous background checks.
- Offers flat rate pricing and discounts for recurring services.
Short-Term Rental Management Fees in Kansas City, Kansas: A Breakdown
In Kansas City, Kansas, the fees for managing short-term rentals, such as those listed on Airbnb or VRBO, can vary significantly based on the level of service provided. Typically, these fees range from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive services like guest communication, marketing, pricing optimization, and maintenance, tends to be on the higher end of this spectrum, often starting at around 15% of revenue.
Basic services, which might only include tasks such as booking management and minimal maintenance, can be less expensive. Additionally, property owners may incur extra fees for specific services like cleaning, repairs, or design enhancements. These fees are structured as a percentage of the revenue generated by the property, allowing for flexibility based on the property's performance and the owner's needs.