The short-term rental market in Naples, Florida, is thriving, characterized by a 60% median occupancy rate, an average daily rate of $267, and an annual host income of $53,000, making it a highly stable and profitable investment opportunity.
Thriving Short-Term Rental Market in Naples, Florida
The short-term rental market in Naples, Florida, is experiencing a period of significant growth and stability. In 2023, the market generated a substantial total revenue of $177 million, with an average daily rate (ADR) of $365 and an average occupancy rate of 65%.
Despite a slight dip in occupancy rates in 2023, the market has shown a robust rebound in 2024, indicating strong underlying demand. The ADR has consistently risen, reflecting a shift towards higher-quality rentals and a willingness among travelers to pay a premium. The peak season, from January to March, continues to drive higher occupancy rates and ADRs, highlighting Naples' allure as a luxurious and relaxing destination. With recent legislative changes lifting previous restrictions, the market is poised for further growth, offering lucrative opportunities for property owners and investors.
Short-Term Rental Regulations in Naples, Florida for 2024
Registration and Compliance
- Registration Requirement: Property owners offering short-term vacation rentals in unincorporated areas of Collier County, but not within the City of Naples, must register their properties under Ordinance No. 2021-45. However, properties within the City of Naples are exempt from this county ordinance.
Tax Obligations
- Tax Collection and Remittance: Property owners must collect and remit taxes associated with short-term rentals, including the Collier County Tourist Development Tax.
- State Sales Tax: A 6% state sales tax must be collected and sent to the Florida Department of Revenue.
Licensing
- State Licensing: If an entire unit is rented out more than three times a year for periods of fewer than 30 days, a license from the Florida Department of Business and Professional Regulation (DBPR) is required.
Exemptions
- Exemptions for City of Naples: Properties situated within the City of Naples are exempt from the Collier County registration ordinance. Additionally, rentals for 30 days or more, or to the same renters for three months, are also exempt.
Occupancy and Other Restrictions
- Occupancy Limits: Local governments can impose occupancy limits, such as two people per bedroom plus an additional two people in a common area, as per the Florida Senate bill SB280.
- Noise, Parking, and Trash Regulations: Property owners must inform guests of applicable local ordinances regarding noise, parking, trash, and other community rules.
Enforcement and Penalties
- Fines for Non-Compliance: Failure to register or comply with regulations can result in significant fines, potentially up to $500 per day per violation.
Additional Requirements
- Designated Contact Person: Owners must designate a contact person available 24/7 to respond to any issues related to the rental property.
- Advertising Compliance: The county registration number must be included on all advertising for the short-term rental.
Future Regulations
- Potential Additional Regulations: The City of Naples may introduce additional regulations to ensure the growth of short-term rentals does not adversely affect the community's character.
Top Airbnb Revenue-Generating Neighborhoods in Naples, Florida
1. Naples Park
- Appeal: Naples Park is highly sought after due to its proximity to Vanderbilt Beach and Delnor Wiggins State Park. Guests love the recently renovated homes, heated pools, and ultra-private backyards. The area is also close to shopping and dining destinations like Mercato and The Ritz Carlton.
2. Bayshore
- Appeal: Bayshore offers a mix of convenience and tranquility. It is close to downtown Naples, 5th Avenue, and the beach, making it ideal for guests who want easy access to shopping, dining, and outdoor activities. The neighborhood's quiet and coastal atmosphere adds to its appeal.
3. Westlake
- Appeal: Westlake is attractive for its modern amenities and new developments. Guests appreciate the area's proximity to various attractions, including beaches, parks, and shopping centers. The neighborhood's newer homes and community facilities make it a popular choice for Airbnb renters.
4. Willoughby Acres
- Appeal: Willoughby Acres is favored for its central location and affordability. It offers easy access to Naples' main attractions, including the beach, 5th Avenue, and local parks. The area's mix of older and newer homes provides a variety of options for guests.
5. Palm River
- Appeal: Palm River is appealing due to its waterfront properties and scenic views. Guests enjoy the peaceful atmosphere and the opportunity to engage in water activities. The area's proximity to downtown Naples and the beach adds to its attractiveness.
6. Old Naples (Outside City Boundaries)
- Appeal: While short-term rentals are restricted within the City of Naples boundaries, areas just outside these boundaries in Old Naples are popular. Guests are drawn to the historic charm, colorful beach cottages, and the vibrant shopping and dining scene on Third Street South.
7. Park Shore
- Appeal: Although short-term rentals under 30 days are not allowed within the City of Naples, Park Shore's upscale amenities and pristine beaches make it a favorite for seasonal rentals. Guests enjoy the private Gulf-side boardwalk and the shopping and dining at The Village.
These neighborhoods are highly appealing due to their combination of proximity to beaches, shopping and dining options, and the variety of accommodation types available, making them ideal for generating significant Airbnb revenue.
Furnishing and Design Tips for an Inviting Airbnb in Naples, Florida
Understanding the Local Style and Audience
- Reflect Coastal Elegance: Use light, airy colors and natural materials to evoke a relaxed beach vibe. Incorporate tropical motifs and clean lines for a fresh and inviting atmosphere.
Choosing the Right Furniture
- Opt for Timeless, Sturdy Pieces: Select furniture that is easy to clean and maintain. Avoid flimsy or fragile items, especially those made of plastic or real/faux leather.
- Space-Saving Furniture: Consider sofa beds, folding tables, and ottomans with hidden storage compartments to maximize space and functionality.
- Durable and Comfortable Seating: Choose sofas with washable covers and sturdy, lightweight chairs that can withstand heavy use.
Enhancing Guest Experience
- Provide Essential Amenities: Equip your kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Also, include a hairdryer, basic toiletries, and a first-aid kit.
- Add Extras and Amenities: Consider providing extras like fishing poles, bicycles, and other local activity-related items to enhance the guest experience.
Design and Layout
- Utilize Smart Storage: Incorporate beds with drawers, wall hooks for coats, pegboards in the kitchen, and stackable containers to keep the space tidy and organized.
- Maximize Natural Light: Ensure that furniture does not block natural light sources and leave ample space for guests to move around.
- Use Mirrors Effectively: Install mirrors to make the space feel bigger and brighter. A full-length mirror is particularly useful for guests getting ready.
High-End Fixtures and Modern Amenities
- Luxurious Bedding and Décor: Invest in high-quality bedding and décor that reflects Naples’ coastal charm. This can include modern amenities like entertainment systems.
- Outdoor Living Spaces: Incorporate stylish patio furniture and ensure that outdoor living spaces are comfortable and inviting.
Accessibility and Safety
- Accessibility Features: Consider adding features like ramps, wide doorways, and grab bars in bathrooms to make your Airbnb accessible to guests with disabilities.
- Safety Features: Ensure compliance with local regulations by providing safety features such as smoke detectors and emergency evacuation plans.
Seasonal Considerations
- Update During Off-Season: Plan furniture updates during the off-season (summer months) to minimize disruption to bookings and keep the property in top shape for guests.
Discover Naples, Florida: Top Attractions and Insider Tips
Beaches and Outdoor Activities
- Naples Beach: Enjoy swimming, sunbathing, and spectacular sunset views.
- Insider Tip: Don't miss the 'green flash' phenomenon at sunset at Lowdermilk Park.
- Delnor-Wiggins Pass State Park: Offers beach activities, snorkeling, bird watching, hiking, and access to the Cocohatchee River and Turkey Bay. Equipment rentals are available.
- Everglades: Explore the unique ecosystem with airboat tours, museums, and galleries. A must-visit for nature lovers and adventure seekers.
Family Fun
- Sun-n-Fun Lagoon: A water park with pools, a lazy river, and water slides, perfect for families.
- Insider Tip: Ensure to check the park's schedule for special events and closures.
- Golisano Children’s Museum of Naples: Interactive and hands-on exhibits that encourage learning through play. Ideal for birthday parties and family outings.
Arts and Culture
- The Baker Museum: Features an extensive art collection, including contemporary and modern art, with regular temporary exhibitions.
- Insider Tip: Check the museum's calendar for special exhibitions and events.
- Naples Botanical Garden: Explore over 1,000 tropical plants in nine distinct garden areas. Guided tours are available.
- Tin City: An open-air shopping district in historic buildings, offering local handicrafts, souvenirs, and waterfront boat tours.
Museums and Historical Sites
- Naples Depot Museum: Showcases Florida's transportation history with exhibits on trains, classic cars, and marine memorabilia.
- Collier County Museum: A self-guided tour through the history of Naples and Southwest Florida, with no admission fee.
- Naples Historical Society and Historic Palm Cottage: Offers tours of historic sites and a glimpse into Naples' past.
Unique Experiences
- Naples Zoo at Caribbean Gardens: A zoo set in a tropical garden, featuring diverse wildlife, interactive shows, and animal encounters.
- Audubon Corkscrew Swamp Sanctuary: A 13,000-acre sanctuary home to diverse fauna and ecosystems, perfect for nature lovers and bird watchers.
- Everglades Rod & Gun Club: A historic club that offers a step back in time, with a rich history of hosting notable visitors.
Shopping and Dining
- The Village Shops on Venetian Bay: Luxury shopping, fine dining, and scenic views, embodying Naples' opulent lifestyle.
- Tin City Shops: Local crafts, art, and bohemian shops with a unique '70s vibe.
Additional Tips
- Naples Pier: Famous for fishing, dolphin-watching, and sunset views. No fishing license is required.
- Conservancy of Southwest Florida: Offers kayak rentals, boat tours, educational programs, and a children’s play zone.
- Local Festivals: Naples hosts various festivals in the fall, including arts, film, and garden festivals. Check local event calendars for the latest.
Practical Tips to Run a Successful Short-Term Rental Business in Naples, Florida
To ensure a smooth and profitable short-term rental business in Naples, Florida, several practical tips can make a significant difference.
Noise Regulations and Quiet Hours
Inform your guests about the local noise regulations and quiet hours to avoid any potential issues. Include this information in your digital and physical house manual, and consider posting reminders in the property to ensure compliance.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover house rules, including quiet hours, to set clear expectations for your guests.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and include photos to help guests navigate the property. Additionally, offer parking instructions with photos to avoid any confusion.
Guest Communication and Support
Ensure that your guests have all the necessary information and support. This includes 24/7 guest communication services, as offered by companies like VALIBERA and Awning, to handle any issues that may arise during their stay.
By implementing these strategies, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental property in Naples, Florida.
Here is a brief list of house cleaning, repair, and maintenance providers in Naples, Florida:
House Cleaning Services
My Cleaning Angel
- Offers one-time, move-in/move-out, post-construction, recurring, and vacation rental cleaning services.
- Uses eco-friendly products and state-of-the-art equipment.
- Provides customizable cleaning plans and a satisfaction guarantee.
The Cleaning Authority
- Implements a Detail-Clean Rotation System for thorough cleaning.
- Uses eco-friendly products and HEPA vacuums.
- Offers free in-home estimates and is fully bonded and insured.
CleanFlorida
- Provides recurring maid services, deluxe deep cleaning, move-in/out cleaning, and vacation rental cleaning.
- Emphasizes transparency and open communication with clients.
- Uses environmentally responsible cleaning products.
Diana's Cleaning Services of Naples LLC
- Offers residential and commercial cleaning, home watch services, one-time and regular cleanings.
- Customized plans, no contracts, and fully bonded and insured professionals.
Gigi Clean
- Specializes in home detailing, handyman services, home watch, and curated services.
- Uses green cleaning products and equipment.
- Provides a custom care package supported by a digital platform.
Repair and Maintenance Services
Gigi Clean
- Offers handyman services including appliance filter replacement, repairs to tile, grout or caulking, and light bulb replacement.
Diana's Cleaning Services of Naples LLC
- While primarily a cleaning service, may offer some basic maintenance services as part of their home watch and cleaning packages.
Naples, Florida Short-Term Rental Management Fees: A Guide to Costs and Services
In Naples, Florida, short-term rental management fees typically range from 10% to 30% of the rental revenue, varying significantly based on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often starting at around 15% and potentially going up to 30% or more.
Basic services, which may include only essential tasks like booking management and minimal maintenance, can cost less, sometimes starting as low as 10%. Additionally, property owners may incur extra fees for services such as cleaning, repairs, and design, which are usually billed separately. Understanding these fee structures is crucial for property owners to make informed decisions and ensure their short-term rental properties are managed efficiently and profitably.