Airbnb & VRBO Performance in Montgomery Alabama.

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Montgomery, Alabama: Airbnb & VRBO Vacation Rental Market Overview

The short-term rental market in Montgomery, Alabama is thriving, with annual revenues for short-term rentals showing promising figures, such as $11.6K in Montgomery, and a robust inventory of flexible and convenient short-term apartments available, catering to the growing demand for unique and temporary accommodations.

Market overview

Thriving Short-Term Rental Market in Montgomery, Alabama

The short-term rental market in Montgomery, Alabama is experiencing a significant surge in popularity and profitability. Driven by the growing demand for unique and flexible accommodations, this market is offering lucrative opportunities for property owners. While specific occupancy rates for short-term rentals in Montgomery are not provided, the overall trend in Alabama indicates a rise in demand, particularly in peak seasons.

In terms of revenue, short-term rentals in Montgomery are generating substantial income. For example, the annual revenue for short-term rentals in similar Alabama cities provides a positive outlook; in nearby cities like Auburn and Tuscaloosa, annual revenues are around $22,400 and $21,600, respectively.

For those looking to capitalize on this trend, Montgomery offers a range of short-term rental options, including furnished apartments with various amenities, which can be rented for flexible periods ranging from a few weeks to several months. The average price range for these short-term rentals in Montgomery is between $696 and $1,205, making it an attractive option for both hosts and travelers. This vibrant market is poised for continued growth, making it an exciting time for property owners and investors in the region.

Short Term Regulations

Short-Term Rental Regulations in Montgomery, Alabama for 2024

General Requirements

  • Business License: All Airbnb hosts must obtain a standard business license from the city of Montgomery.

Tax Obligations

  • State Lodging Tax: 4% of the short-term rental income.
  • Local Lodging Taxes: Additional taxes include $2.25 per room per day to Montgomery County and 11% to the City of Montgomery for rentals within the corporate limits (5.5% within the police jurisdiction).

Safety and Compliance

  • Safety Standards: While there are no mandatory safety inspections, hosts are responsible for ensuring their properties comply with strict safety standards, including the installation of smoke detectors and carbon monoxide alarms.
  • Noise and Disturbances: Hosts must ensure their guests do not create excessive noise or disturbances that could disrupt the peace and tranquility of the surrounding area.

Zoning and Restrictions

  • No Zoning Restrictions: There are no zoning restrictions on where short-term rentals can operate in Montgomery.
  • No Caps on Rental Nights: No limits on the number of nights a property can be rented per year.
  • No Primary Residence Requirement: The property does not need to be the host's primary residence.

Operational Freedom

  • No Limits on Guests or Parking: No specific limits on the number of guests or required parking spaces.
  • No Mandatory Safety Inspections: Hosts are responsible for voluntarily implementing best practices to ensure a safe and neighborly operation.

Enforcement

  • Minimal Enforcement: The city does not strictly enforce short-term rental rules, as long as hosts obtain the necessary business license and stay current on their lodging tax obligations.

Additional Considerations

  • Record Keeping: Hosts should keep records of guests who stay at their properties.
  • Community Responsibility: Hosts are expected to maintain a safe rental and be good neighbors to avoid potential issues or complaints.
Neighborhood Performance

Top Neighborhoods for Airbnb Revenue in Montgomery, Alabama

1. Forest Hills

  • Average Revenue: $32.7K per year
  • Average Daily Rate: $146.9 per night
  • Average Occupancy Rate: 61%
  • Average RevPAR: $90.6
  • Appeal: Forest Hills is a tranquil and upscale neighborhood offering a blend of suburban serenity and urban convenience. Its prime location provides easy access to major thoroughfares, essential services, and various shopping and dining destinations, making it highly appealing for guests seeking a comfortable and convenient stay.

2. Hampstead

  • Average Revenue: $27.8K per year
  • Average Daily Rate: $181.2 per night
  • Average Occupancy Rate: 42%
  • Average RevPAR: $72.7
  • Appeal: Hampstead is a vibrant and innovative mixed-use community with exceptional convenience. It features a walkable layout, proximity to major thoroughfares, and amenities like restaurants, shops, and recreational facilities within the neighborhood, making it attractive for guests who value convenience and modern amenities.

3. Cloverdale

  • Average Revenue: $27.6K per year
  • Average Daily Rate: $157.5 per night
  • Average Occupancy Rate: 48%
  • Average RevPAR: $76.1
  • Appeal: Cloverdale is a charming neighborhood that blends historic charm with modern amenities. Its prime location in the heart of Montgomery offers easy access to downtown, major thoroughfares, and essential services, making it appealing for guests who want to experience the city's historic and modern aspects.

4. Garden District

  • Average Revenue: $27K per year
  • Average Daily Rate: $154.1 per night
  • Average Occupancy Rate: 48%
  • Average RevPAR: $73.8
  • Appeal: The Garden District is a historic and affluent neighborhood with Southern charm and modern amenities. Its proximity to downtown Montgomery and various attractions, along with its walkability, makes it an attractive option for guests seeking a blend of history and convenience.

5. Capitol Heights

  • Average Revenue: $22.8K per year
  • Average Daily Rate: $122.6 per night
  • Average Occupancy Rate: 51%
  • Average RevPAR: $62
  • Appeal: Capitol Heights is a vibrant and historic neighborhood with a prime location in the city. It offers easy access to major thoroughfares, essential services, and various attractions, making it appealing for guests who want to be close to the heart of Montgomery's activities and landmarks.
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Design Tips

Furnishing and Design Tips for an Inviting Airbnb in Montgomery, Alabama

Understanding the Local Market and Style

  • Reflect Montgomery's Unique Blend: Incorporate a mix of Southern charm and modern sophistication in your furniture and decor to align with the city's historical essence and contemporary vibe.

Choosing the Right Furniture

  • Opt for High-Quality, Easy-to-Clean Furniture: Select furniture that is durable and easy to maintain, such as sofas with washable covers and beds with storage drawers.
  • Space-Saving Furniture: Use versatile pieces like sofa beds, folding tables, and ottomans with hidden storage to maximize space and functionality.

Enhancing Comfort and Convenience

  • Provide Modern Conveniences: Ensure your property includes amenities like high-speed Wi-Fi, fully equipped kitchens, and comfortable bedding to enhance guest comfort.
  • Outdoor Spaces: Include outdoor areas for relaxation, such as backyard pools or patios, to cater to guests seeking additional amenities.

Design and Layout Considerations

  • Measure and Plan the Layout: Ensure the furniture arrangement allows for ample space to move around and does not block natural light sources.
  • Use Mirrors: Incorporate mirrors to make the space feel bigger and brighter.

Neighborhood and Proximity

  • Invest in Desirable Neighborhoods: Focus on areas like Downtown Montgomery, Cloverdale, and the Garden District, which are highly sought after due to their proximity to attractions and events.

Aesthetic and Decor

  • Incorporate Local Art and Handmade Items: Add authenticity to your space by including local art and handmade items that reflect Montgomery's culture and history.
  • Traditional Southern Styles with a Contemporary Twist: Use warm colors and classic furnishings with a modern twist to create a welcoming and stylish atmosphere.

Guest Amenities

  • Essential Toiletries and Appliances: Provide basic toiletries, a hairdryer, and essential kitchen appliances like a coffee maker, microwave, and kettle to enhance the guest experience.
  • Accessibility Features: Consider adding features like ramps, wide doorways, and grab bars in bathrooms to make your Airbnb accessible to guests with disabilities.

Maintenance and Upkeep

  • Timing Updates: Plan furniture updates during the off-season or short gaps between bookings to minimize disruption to guests.
  • Input from Cleaning Crew: Consult with your cleaning crew on furniture choices to ensure they are easy to clean and maintain.
Insider Tips

Discover Montgomery, Alabama: Top Attractions and Insider Tips

Historical and Civil Rights Landmarks

  • Dexter Avenue King Memorial Baptist Church and Dexter Parsonage Museum:
  • Walk in the footsteps of Dr. Martin Luther King, Jr. at the church where he served as pastor and visit the parsonage where he lived.
  • Rosa Parks Library and Museum:
  • Learn about Rosa Parks' historic act of defiance and explore artifacts including her original arrest record and a restored 1955 station wagon used during the boycott.
  • Freedom Rides Museum:
  • Honor the brave participants of the Freedom Rides and understand the significance of this protest in the civil rights movement.
  • National Memorial for Peace and Justice:
  • Visit the poignant memorial dedicated to the victims of lynching and racial terror.
  • Alabama State Capitol:
  • Tour the capitol building where Dr. King ended his Selma-to-Montgomery march with a stirring speech.

Cultural and Educational Attractions

  • Montgomery Museum of Fine Arts:
  • Enjoy a diverse collection of American art from the 19th century to the present.
  • Hank Williams Museum:
  • Explore the life and legacy of the country music legend Hank Williams.
  • The MOOseum:
  • A unique attraction for families, showcasing Alabama's cattle industry with interactive exhibits and a play arena.

Family-Friendly Activities

  • Montgomery Zoo:
  • Spend a day with family at the zoo, home to a variety of animals and educational programs.
  • Old Alabama Town:
  • Tour over 50 historic homes and buildings restored to their original state, offering a glimpse into 19th- and early 20th-century Alabama life.
  • Riverfront Park:
  • Enjoy scenic cruises on the Harriott II Riverboat, live performances at the Riverfront Amphitheater, and a splash pad for kids.

Outdoor and Entertainment

  • Riverfront Park:
  • Besides the riverboat and amphitheater, the park also features a beautiful setting for relaxation and family activities.
  • Alabama Safari Park:
  • Drive through and interact with various wildlife in a natural setting.
  • The Montgomery Biscuits:
  • Catch a minor league baseball game for some family-friendly entertainment.

Insider Tips

  • Guided Tours:
  • Book a guided tour with local experts like Wanda Battle or Jake Williams for a deeper understanding of Montgomery's civil rights history.
  • Local Cuisine:
  • Try Southern specialties like barbecue and unique dishes such as a pig’s ear sandwich at local eateries like Barbara Gail’s Neighborhood Grille.
  • Rooftop Hotspots:
  • Enjoy Montgomery’s vibrant nightlife by visiting new rooftop hotspots for a panoramic view of the city.

Additional Resources

  • Montgomery Visitors Center:
  • Start your visit with a tour or gather information at the visitors center, which offers tours focusing on Dexter Avenue and other historic sites.
  • ExploreMontgomery:
  • Check out curated itineraries and event calendars to make the most of your visit to Montgomery.
Practical Tips

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

To ensure a smooth and successful short term rental business in Montgomery, Alabama, several practical tips can be implemented. Here are some key considerations:

Noise Regulations and Guest Communication

Inform your guests about quiet hours and noise regulations in Montgomery to avoid any potential issues with neighbors. Including this information in your house manual or welcome message can help 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 will help guests navigate the property easily and reduce 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 entry points.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests understand where and how to park. This is particularly important in areas with limited parking or specific regulations.

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 Montgomery, Alabama. Ensuring compliance with local regulations, such as obtaining a standard business license and remitting lodging taxes, is also crucial for a successful and compliant operation.

Local Vendors

Here is a brief list of house cleaning providers in Montgomery, Alabama:

House Cleaning Services in Montgomery, AL

Mooremaids

  • A woman-owned cleaning company offering one-time, weekly, or bi-weekly house cleaning services.
  • Services include deep cleaning, move-out cleaning, and disinfection.

Two Maids

  • Provides home cleaning services, including one-time deep cleans and recurring cleanings.
  • Supplies all necessary cleaning products and equipment.
  • Team of experienced, fully licensed, bonded, and insured cleaners.

The Maids

  • Offers a 22-Step Healthy Touch® Deep Cleaning System and partners with Mr. Clean®.
  • Services include disinfecting common touch areas, using commercial-grade vacuums, and seasonal cleaning.
  • Provides move-out cleaning, special cleaning services, and one-time cleaning.

Eliteness Cleaning

  • Offers house and apartment cleaning services.
  • Provides reliable and professional cleaning to help maintain a clean and well-organized home.

These services are dedicated to providing various house cleaning solutions tailored to different needs and preferences.

Management fees

Short-Term Rental Management Fees in Montgomery, Alabama: A Comprehensive Guide

In Montgomery, Alabama, managing a short-term rental property can incur management fees that typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the rental income.

Basic services, which may include only the essentials like rent collection and property oversight, can be more affordable, starting at around 10% of the rental revenue. Additionally, hosts may incur extra fees for services like cleaning, repairs, or design and consumables, which can vary depending on the management company and the specific needs of the property. Understanding these fee structures is crucial for hosts to ensure they are getting the best value for their investment while maintaining a compliant and profitable short-term rental business.

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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 Montgomery 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
RedAwing knows how to get bookings
50+ Top Booking Channels
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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 Montgomery.

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