Ocean City, Maryland, is experiencing robust short-term rental performance, with a 49-57% median occupancy rate, average daily rates of $251-$317, and significant revenue potential, making it a highly profitable and stable market for vacation rental hosts.
Thriving Short-Term Rental Market in Ocean City, Maryland
Ocean City, Maryland, is experiencing a robust short-term rental market, driven by strong demand and favorable trends. The city is maintaining occupancy rates that are on par with national averages, with a notable 57% occupancy rate, indicating a consistent and steady demand for vacation rentals.
The average daily rate for short-term rentals in Ocean City stands at $317, contributing to a healthy monthly revenue of $27,406 for hosts. This performance is bolstered by an average stay of 4.8 days, slightly longer than the national average, and a booking lead time of 120 days, which is more than double the national average. These metrics highlight the city's appeal as a prime vacation spot and the proactive nature of its guests. Overall, Ocean City's short-term rental market is thriving, offering lucrative opportunities for hosts and a satisfying experience for travelers.
Proposed Short-Term Rental Regulations in Ocean City, Maryland for 2024
Licensing and Compliance
- Licensing Requirement: All hosts must obtain a rental or business license from the town. For single-family homes or condos, an R1/rental license is necessary, while other properties require a business license.
- Noise Control Permit: A noise control permit is required, involving the use of code 9900 along with the appropriate rental classification for the property.
- Control Number: Hosts must add their Control Number to their Airbnb listing for compliance.
- Annual Renewal: Licenses must be renewed yearly, with renewal notices sent out in early March for rental licenses and in April for business licenses.
Minimum Length of Stay
- Minimum Stay Requirement: A proposed regulation would mandate a minimum rental period of five to seven days for single-family homes and manufactured housing from May 1 through September 30, and a minimum of three consecutive days from October 1 through April 30.
Occupancy Limits
- Occupancy Restrictions: Proposed regulations aim to limit overnight occupancy to two people per bedroom, plus two additional guests. For example, a three-bedroom rental can accommodate a maximum of eight people overnight, with children under 10 not counted in the total.
Enforcement and Monitoring
- Sticker Requirement: Short-term rental properties may be required to display a sticker on the door indicating the maximum occupancy to ensure compliance.
- Management by Local Business: The council is considering hiring a local business to manage all short-term rentals in the area to enforce regulations.
Community Impact
- Stability in the Community: Longer rental periods aim to promote a more stable community atmosphere, reducing turnover and fostering neighborhood cohesion.
- Quality of Life: Limiting short-term rentals is intended to minimize noise, traffic, and disruptions associated with frequent check-ins and check-outs, enhancing the overall quality of life for residents.
- Preservation of Character: These regulations help maintain the residential character of the neighborhoods by discouraging transient occupancy and preserving the integrity of single-family residential areas.
Public Input and Review
- Public Hearing: A public hearing is scheduled for November 19, 2024, to discuss the proposed regulations further.
- Submission of Comments: Residents can submit comments to the Planning Commission via email or by attending the public hearing.
Top Neighborhoods for Airbnb Revenue in Ocean City, Maryland
1. Ocean City Boardwalk
The Ocean City Boardwalk is one of the most lucrative areas for Airbnb investments due to its central location and proximity to key attractions such as Trimper's Rides and Amusement Park, shops, and restaurants. Guests are drawn to the vibrant atmosphere, easy access to the beach, and the variety of entertainment options available.
2. North Ocean City
North Ocean City is a family-centric area that appeals to guests seeking a more relaxed and family-friendly environment. This neighborhood offers a range of amenities, including parks and recreational facilities, making it an ideal spot for families and groups looking for a comfortable and convenient stay.
3. West Ocean City
West Ocean City provides a tranquil bayside haven that attracts guests looking for a serene and accessible location. Its proximity to the bay and the peaceful atmosphere make it a popular choice for those seeking a more laid-back vacation experience.
4. Sunset Island and Heron Harbour
These exclusive communities offer luxury living with year-round amenities, including waterfront properties and high-end amenities. Guests are drawn to the upscale experience, beautiful views, and the convenience of having various amenities at their disposal.
5. Ocean City Beach and Inlet
The areas around the Ocean City Beach and Inlet are highly appealing due to their direct access to the beach and scenic views. Guests can enjoy water activities, visit the Ocean City Life-Saving Station Museum, and take in the vibrant beach life, making these locations highly sought after for short-term rentals.
These neighborhoods are particularly appealing due to their unique blend of accessibility, amenities, and the overall vacation experience they offer, making Ocean City a highly profitable market for Airbnb investors.
Tips for Furnishing and Design of an Airbnb in Ocean City, Maryland
To create an inviting and uniquely styled Airbnb in Ocean City, Maryland, consider the following tips:
Embrace Coastal and Bright Decor
- Use coastal and bright decor to reflect the oceanfront location. Incorporate light colors, nautical themes, and beach-inspired elements to make guests feel right at home.
Provide Local Touches
- Add local touches such as pieces from local artists, crab-cracking tools, and other items that support local cuisine to give your space a genuine Ocean City feel.
Ensure Easy-Clean Surfaces
- Opt for durable and easy-clean surfaces in the kitchen and bathroom to simplify maintenance. Use under-counter drawers to minimize clutter and make cleaning easier.
Offer Plenty of Amenities
- Provide amenities that enhance the guest experience, such as free WiFi, full-size washer & dryer, outdoor pools, and smart TVs with streaming services. These amenities can include linens, towels, and fully equipped kitchens.
Personalize the Space
- Add personal touches like handwritten welcome notes and personalized recommendations for local attractions to make guests feel valued and appreciated.
Maintain High Cleanliness Standards
- Ensure the property is squeaky clean and disinfected upon each guest's arrival. Refresh linens, towels, and blankets, and use natural air fresheners to maintain a pleasant atmosphere.
Highlight Ocean Views
- If your property has ocean views, maximize them by using large windows, balconies, and patio rooms. This will allow guests to enjoy the breathtaking views of the ocean and bay.
Consider the Location's Unique Experience
- Showcase the unique experience of your location by highlighting nearby activities, such as walking distance to the beach, boardwalk, amusement parks, and local restaurants.
Use Functional and Comfortable Furniture
- Choose furniture that is both functional and comfortable. For example, include a king-size bed, queen sleeper sofa, and spacious living areas to ensure guests have a comfortable stay.
Incorporate Local Information
- Provide information on local and state parks, walking trails, activities, and excursions. This could include guides for day trips to nearby attractions or recommendations for local dining.
By following these tips, you can create an Airbnb in Ocean City, Maryland, that is not only inviting but also reflective of the city's unique style and charm.
Discover the Best of Ocean City, Maryland: Local Attractions and Insider Tips
Must-Visit Attractions
Ocean City Boardwalk
- Stroll along the iconic three-mile boardwalk, featuring shops, restaurants, and amusement rides. A must-visit for any Ocean City traveler.
Jolly Roger Amusement Park
- Enjoy exhilarating rides, go-kart races, and roller coasters at the Inlet location, and water park thrills at Jolly Roger's Splash Mountain on 30th Street.
Freeman Arts Pavilion
- Experience live entertainment, including music, dance, theater, and children's programs in this open-air performance space.
Frontier Town
- Step into an 1880s replica western town with gunfights, bank holdups, pony rides, and a water park featuring high-speed waterslides and a lazy river.
Ocean Downs Casino
- Located just 10 minutes outside of Ocean City, offering live table games, over 850 slot machines, horseracing, and multiple dining options.
Outdoor Adventures
Assateague Island
- A short drive from Ocean City, known for its wild ponies, sandy beaches, and opportunities for surfing, canoeing, and kayaking. Don't miss the local surf shops, farms, and breweries.
Coastal Kayak
- Based in Fenwick Island, offers kayak eco-tours, paddleboard rentals, and sailboat experiences. Perfect for exploring the coastal waters.
Ayers Creek Adventures
- Provides exclusive eco tours and rentals, allowing guests to explore the scenic Ayers Creek area.
Bayside Boat Rentals
- Rent the newest watercraft, including boats and jet skis, for a day on the bay or ocean.
Unique Experiences
Escapomania Escape Rooms
- A unique team-building activity for families, friends, and professionals. Great for parties and events.
Sail Alyosha
- Go sailing on a 50-foot catamaran for a different and exciting experience.
Ripley's Believe It or Not Odditorium
- Marvel at the strange, beautiful, and weird exhibits, located next to the famous Thrasher's Fries on the boardwalk.
Insider Tips
Local Dining
- Enjoy a culinary journey with fine dining options ranging from seafood to farm-to-table cuisine. Don't miss the local favorites along the boardwalk.
Community Events
- Check out the weekly farmer’s market in downtown Berlin, just a short drive away, and enjoy live entertainment at Burley Oak Brewing Company.
Day Trips
- Explore nearby towns like Pocomoke, known for its friendly atmosphere and the Delmarva Discovery Museum, and Historic Snow Hill, with its historic homes and kayak tours.
Seasonal Events
- Don't miss the Winterfest of Lights, a beloved holiday tradition in Ocean City, filled with festive lights and holiday magic.
By sharing these attractions and insider tips, you can help your guests make the most of their visit to Ocean City, Maryland.
Practical Tips to Run a Successful Short Term Rental Business in Ocean City, Maryland
To ensure the success of your short-term rental business in Ocean City, Maryland, several practical tips can be implemented to enhance guest satisfaction and compliance with local regulations.
Noise Regulations and Guest Communication
Inform your guests about the noise regulations and quiet hours in Ocean City. Obtaining a noise control permit is mandatory, and ensuring guests are aware of the quiet hours can help avoid any issues. Include this information in your digital and physical house manual to keep guests informed.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other pertinent information. This manual should be easily accessible to guests, either through a web-based app or a physical copy at the property.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. This not only enhances security but also provides controlled, monitored access for guests, cleaners, and maintenance personnel. Additionally, include clear parking instructions with photos to help guests navigate the property easily.
Compliance and Maintenance
Ensure your property complies with all local regulations, including licensing requirements and zoning laws. Maintain strong relationships with local vendors and contractors to address any maintenance issues promptly, ensuring the property remains in excellent condition for each guest.
By implementing these strategies, you can maximize guest satisfaction, reduce potential issues, and ensure your short-term rental business in Ocean City, Maryland, operates smoothly and profitably.
Here is a brief list of house cleaning providers in Ocean City, Maryland:
House Cleaning Services
Clean Freak OC
- Offers residential and commercial cleaning services, including regular cleaning, deep cleaning, and move-in/move-out services.
- Serves Ocean City, Berlin, Ocean Pines, MD, and Bethany Beach, DE.
Missi's Beach Condo Cleaning
- Specializes in cleaning and property care services for beach condos.
- Known for reliable and thorough cleaning, treating properties like family.
Various Services Listed on Care.com
- Provides a list of affordable house cleaning options in Ocean City, MD, with rates starting at $16.62/hr and varying based on experience and reviews.
Maid Services Listed on HomeAdvisor
- Features a list of the best maid services in Ocean City, MD, with average costs ranging from $106 to $227.
- Includes reviews and cost estimates for different cleaning services.
House Cleaners Listed on Angie's List
- Offers a list of top-rated house cleaners in Ocean City, MD, with reviews and ratings.
- Provides guidance on what to consider when hiring a house cleaner.
Short-Term Rental Management Fees in Ocean City, Maryland: A Comprehensive Overview
In Ocean City, Maryland, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as Coastal Life Vacations and Vacasa, which handle all aspects including guest communication, marketing, and maintenance, tend to charge fees on the higher end of this spectrum, often between 15% to 30% of the revenue.
Basic services, which might include only the essentials like booking management and rent collection, may incur lower fees, usually around 10% to 15% of the revenue. Additionally, property owners may encounter extra fees for services such as professional photography, cleaning, repairs, and design enhancements. These fees can add to the overall cost but are often justified by the increased bookings and revenue generated through effective management and marketing strategies.