In North Dakota, particularly in cities like Fargo and West Fargo, the short-term rental market is thriving, with steady demand, seasonal peaks during summer and local events, and opportunities for hosts to maximize occupancy and revenue through strategic pricing and management.
Thriving Short-Term Rental Market in Fargo, North Dakota: A Promising Outlook
Fargo, North Dakota, is experiencing a robust and promising short-term rental market, despite some seasonal fluctuations. As of the third quarter of 2024, the region is showing signs of stabilization and growth. While the summer months saw a slight decline in occupancy rates compared to previous years, the late fall season is pacing ahead, with November occupancy rates expected to be 2% higher than last year.
Average daily rates (ADR) have remained relatively stable, with rates in August 2024 at $329, only $3 higher than the previous year but still competitive. Looking forward, rates are expected to be $8 higher per night in October and November compared to last year.
The city's vibrant cultural scene, educational and healthcare hubs, and outdoor attractions continue to attract a diverse range of visitors, ensuring a steady demand for short-term rentals. By strategically adjusting pricing and marketing efforts to align with seasonal trends, hosts in Fargo can maximize their occupancy and revenue, making the city an excellent destination for both tourists and investors in the short-term rental market.
Short-Term Rental Regulations in Billings County, North Dakota (Applicable to Areas Like North River) for 2024
General Requirements
- Definition of Short-Term Rental: Any lodging provided for less than 30 consecutive days.
Application and Permitting
- Application Procedure: The application must include the name, address, and contact information of the property manager and a local contact person available 24/7. It must also include proof of insurance, North Dakota business registration, and Sales and Use Tax permit.
- Conditional Use Permit: Required for all short-term rentals, which must be approved by the county.
Zoning and Use
- Allowed Zoning Districts: Short-term rentals are allowed in Agriculture, Residential, Recreational, or Commercial districts, depending on the size of the rental unit.
- Maximum Occupancy: Defined by the number of bedrooms:
- 1-bedroom: 4 occupants
- 2-bedrooms: 7 occupants
- 3-bedrooms: 10 occupants
- 4-bedrooms: 13 occupants
- 5-bedrooms: 16 occupants
- More than 16 occupants or more than 5 bedrooms: Considered a hotel and subject to hotel zoning regulations.
Safety and Health Standards
- Septic Systems: Must be sized according to the number of bedrooms and occupancy, inspected by the SW District Health Unit, and monitored and pumped regularly.
- Fire Safety: Fireplaces, fire pits, charcoal grills, wood burning stoves, or other outdoor cooking or fire facilities are not allowed. Lighting fireworks on site is prohibited.
Property Maintenance
- Parking Requirements: One parking space per bedroom, contained on the site. On-street parking and parking within private road right-of-ways are not allowed. Parking areas must not obstruct access for emergency service vehicles.
- Access Requirements: Property must have public or private access off a public road. Written permission is required for shared driveway access.
Additional Regulations
- Signage: Not allowed.
- Property Appearance: The use of a dwelling unit as a short-term rental must not change the appearance of the dwelling or property for residential purposes.
Tax and Licensing
- Sales Tax Registration: Hosts must register with the North Dakota Office of State Tax Commissioner to collect and remit state and local sales taxes.
- State Lodging License: Required for short-term rentals with four or five bedrooms.
Documentation
- Proof of Property Ownership: Documentation proving ownership of the rental property.
- Property Insurance Policy: Insurance policy that specifically covers short-term rentals.
- Fire Safety Certification: Ensures the property meets fire safety standards.
Compliance and Enforcement
- Non-Compliance Consequences: Can include monetary fines, cease and desist orders, revocation of the right to operate a short-term rental, and potential legal action by the county.
Top Airbnb Revenue-Generating Neighborhoods in Fargo, North Dakota
Why Fargo?
Fargo, the largest city in North Dakota, is a lucrative market for Airbnb investors due to its vibrant arts and culture scene, outdoor activities, and Midwestern hospitality.
Neighborhoods Generating the Most Airbnb Revenue
1. Downtown Fargo
- Appeal: Downtown Fargo is a hub for restaurants, shops, and cultural attractions. Guests are drawn to its vibrant atmosphere, proximity to theaters, galleries, and live music venues.
- Revenue Potential: High demand and central location make properties here highly profitable, with average annual revenues exceeding $26,000.
2. Fargo-Moorhead Area
- Appeal: This area is attractive due to its proximity to the Red River and various outdoor activities such as biking and kayaking. It also offers easy access to both Fargo and Moorhead's amenities.
- Revenue Potential: The mix of urban and natural attractions ensures a steady stream of guests, contributing to high occupancy rates and significant revenue.
3. South Fargo
- Appeal: Known for its spacious homes and family-friendly environment, South Fargo is popular among guests seeking comfort and convenience. Properties here often feature multiple bedrooms, bathrooms, and amenities like game rooms.
- Revenue Potential: Properties in South Fargo can generate substantial revenue, with many listings showing potential annual revenues of over $26,000 and high occupancy rates of around 74%.
4. Lindenwood Park Area
- Appeal: This area is appealing due to its scenic beauty and recreational opportunities. Lindenwood Park is a major attraction, offering a peaceful and natural setting that complements the urban experience.
- Revenue Potential: The combination of natural beauty and proximity to urban amenities makes properties in this area highly desirable, contributing to their revenue potential.
5. Near Scheels Arena and Other Local Attractions
- Appeal: Properties located near popular attractions like Scheels Arena, the Plains Art Museum, and the Fargo Air Museum are in high demand. These areas offer a blend of entertainment, culture, and convenience.
- Revenue Potential: The proximity to these attractions ensures a consistent flow of guests, leading to high occupancy rates and significant annual revenues.
These neighborhoods are particularly appealing due to their unique blend of cultural, recreational, and convenient amenities, making them stand out as the most profitable areas for Airbnb investments in Fargo, North Dakota.
Crafting an Inviting Airbnb in North Dakota: Design and Furnishing Tips
To create an Airbnb in North Dakota, particularly in cities like Williston or Bismarck, that reflects the local unique style and appeals to a diverse range of guests, consider the following tips:
Understand Your Target Audience
- Design the space to cater to various types of travelers, including business professionals, families, and outdoor enthusiasts. Ensure the property offers functional spaces that meet the needs of all these groups.
Comfortable and Functional Spaces
- Provide comfortable sleeping arrangements and ample space for relaxation. This includes multiple bedrooms, bathrooms, and social areas such as living rooms, dining rooms, and outdoor spaces like grills, fire pits, and decks.
Local and Rustic Charm
- Incorporate local elements and rustic charm into the design. Use earthy colors, log cabin aesthetics, and modern touches to create a unique and inviting atmosphere that resonates with North Dakota's natural landscape.
Modern Conveniences
- Ensure the property is equipped with modern conveniences such as updated kitchens, reliable high-speed internet, and modern appliances. These amenities are crucial for both leisure and business travelers.
Dual Functionality
- Design spaces with dual functionality, such as a dining room that can also serve as a workspace or a media room that doubles as a sleeping area. This maximizes the use of space and enhances guest experience.
Outdoor Spaces
- Highlight the outdoor spaces by including amenities like grills, fire pits, hot tubs, and spacious decks. These areas are particularly appealing for guests looking to relax and enjoy the scenic views.
Neighborhood Considerations
- Choose neighborhoods that are close to town centers, recreational activities, and local attractions. Areas near the Missouri River, Lake Sakakawea, or other scenic spots are highly desirable.
Local Art and Crafts
- Incorporate local art and crafts into the decor to give the property a unique identity and a sense of place. This helps guests connect with the local culture and enhances their overall experience.
Cozy and Homely Feel
- Prioritize comfort and functionality to create a homely feel. Use warm colors, rustic elements, and cozy furnishings to make guests feel at home.
Year-Round Appeal
- Design the property to cater to travelers year-round by ensuring it is suitable for various seasons and types of visits, whether for business, tourism, or events.
By following these tips, you can create an Airbnb in North Dakota that is not only inviting but also reflective of the city's unique style and charm.
Exploring North Dakota: Local Attractions and Insider Tips for Airbnb Hosts
Top Attractions
Theodore Roosevelt National Park
- A must-visit for its stunning badlands landscapes, free-roaming bison, and scenic drives. The park is divided into North and South units, with the Painted Canyon Visitor Center offering breathtaking views and a .9 mile loop hike.
- Insider Tip: Allow at least 90 minutes for the 36-mile scenic loop drive and consider camping at one of the two campgrounds within the park.
North Dakota Heritage Center
- Located in Bismarck, this museum features a wide range of artifacts, including a Tyrannosaurus rex skeleton cast and a scale model of the Hubble Space Telescope. Admission is free, and the Northern Lights Atrium is a highlight.
- Insider Tip: Enjoy refreshments at the onsite James River Cafe and explore the immersive Landscapes of the Capital Arborium Trail.
Knife River Indian Villages National Historic Site
- Near Stanton, this site preserves the culture of the Mandan and Hidatsa Indians with rebuilt villages and a museum. Visitors can learn about the native environment and history.
- Insider Tip: Check out the living history demonstrations and field trips available at the site.
Lewis & Clark Riverboat
- Docked along the Missouri River in Bismarck, this steamboat offers heritage cruises during the day and sunset cruises in the evening. A great way to experience the river's history.
- Insider Tip: Plan your visit according to the cruise schedules to make the most of your day.
Fort Abraham Lincoln State Park
- Located on the west bank of the Missouri River, this park features the On-a-Slant Indian Village with five re-created Mandan earth lodges. It's a great spot to learn about the region's history.
- Insider Tip: Combine your visit with a stop at the nearby Double Ditch Indian Village for a deeper historical experience.
International Peace Garden
- Situated on the border with Manitoba, Canada, this garden is a symbol of peace and features over 150,000 flowers and several monuments. Don't forget your passport.
- Insider Tip: Plan a picnic or a leisurely walk through the gardens to appreciate its beauty.
Viking Ship Park
- In Moorhead, near Fargo, this park features a 76-foot long replica of a Viking dragon ship and a 12th-century stave church. It's a unique cultural experience.
- Insider Tip: Visit the Heritage-Hjemkomst Interpretive Center to learn more about Viking history and culture.
National Buffalo Museum
- Located in Jamestown, this museum is dedicated to the history of bison and the Plains Indians. Learn about the near extinction and reintroduction of buffalo and see White Cloud, the legendary white buffalo.
- Insider Tip: Explore the Frontier Village adjacent to the museum, which includes old Pioneer buildings and offers stagecoach and pony rides.
Additional Tips
Madarah Trail: For outdoor enthusiasts, the Madarah Trail offers over 140 miles of scenic trails through iconic North Dakota landscapes, including the Theodore Roosevelt National Park. It's a great option for day trips or multi-day hikes.
Local Events: Check for seasonal events such as the Wild West Shoot-Out at Frontier Village during summer weekends.
Dining and Accommodations: Recommend local eateries and unique accommodations like the Hotel Donaldson in Fargo, known for its art-filled rooms and local literature.
By sharing these attractions and insider tips, you can enhance your guests' experience and help them make the most of their visit to North Dakota.
Practical Tips to Run a Successful Short-Term Rental Business in North Dakota
To ensure a smooth and profitable short-term rental business in North Dakota, whether in Fargo or Bismarck, several practical tips can make a significant difference.
Noise Regulations and Quiet Hours
Inform your guests about quiet hours to maintain a peaceful environment, especially in residential areas. Include clear guidelines on noise levels in your digital and physical house manual to avoid any potential issues with neighbors.
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 helps guests navigate the property easily and reduces the likelihood of misunderstandings.
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 your house manual to help guests find and use the designated parking areas. This can prevent confusion and potential parking violations, especially in areas with strict parking regulations.
By implementing these tips, you can enhance the guest experience, reduce potential issues, and ensure your short-term rental business operates smoothly and successfully in North Dakota.
While the sources do not specifically mention house cleaning services based in Park River, ND, here are some nearby or relevant services that could be considered:
House Cleaning Services
- The Cleaning Lady: Although based in Bismarck and Mandan, they serve surrounding areas in North Dakota. They offer residential, commercial, deep cleaning, move-in/move-out, and post-construction cleaning services.
General Housekeeping Resources
- Care.com: This platform lists housekeepers available in various locations, including Park River, ND. It can be used to find local housekeeping services.
Broader Regional Services
- Steamatic of The Red River Valley: Based in Fargo, ND, this service provides residential home and apartment cleaning. While not in Park River, it is within the state and could be an option for those willing to hire from a nearby city.
For more localized services, it might be necessary to check local listings or community resources specific to Park River, ND.
Short-Term Rental Management Fees in North Dakota: A Guide to Costs and Services
In North Dakota, particularly in areas like Fargo and Bismarck, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive services such as guest communication, strategic marketing, and maintenance, tends to be on the higher end of this spectrum, often starting at around 20% of the revenue.
Basic service packages, which may include only essential services like rent collection and tenant relations, can be more economical, sometimes as low as 10% of the monthly rent. Additionally, hosts may incur extra fees for services like cleaning, repairs, and professional design and furnishing of the rental property. Understanding these fee structures is crucial for property owners to make informed decisions and maximize their return on investment in the competitive short-term rental market.