Airbnb & VRBO Performance in Old Lyme Connecticut.

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Old Lyme, Connecticut: Airbnb & VRBO Vacation Rental Market Overview

In Old Lyme, Connecticut, short-term rental operators are experiencing significant success, particularly with beachfront properties, which remain highly booked and profitable despite the town's moderate regulatory environment.

Market overview

Thriving Short-Term Rentals in Old Lyme, Connecticut

Old Lyme, Connecticut, is experiencing a robust performance in the short-term rental market, particularly driven by its appealing coastal location. Despite the presence of regulations, short-term rental operators in Old Lyme are finding significant success. Properties, especially those near the beach, are often "booked solid for 4-5 months out of the year," indicating high occupancy rates during peak seasons.

While specific average daily rates are not provided, the high demand and strong booking rates suggest that rental income is substantial. The town's moderate approach to enforcing regulations and its ongoing efforts to develop fair and effective rules have created a favorable environment for short-term rental operators. This balance between economic benefits and community concerns has made Old Lyme a desirable and profitable destination for both hosts and guests.

Short Term Regulations

Short-Term Rental Regulations in Old Lyme, Connecticut for 2024

Overview of Requirements

To operate a short-term rental in Old Lyme, Connecticut, property owners must adhere to the following regulations:

Permitting Requirements

  • Zoning Permit or Special Permit: Property owners must obtain a zoning permit or special permit from the town, depending on the number of rooms rented.

Classification and Limits

  • Bed and Breakfast: Defined as a single-family dwelling renting up to four rooms to transients on a short-term basis, with the option to serve meals.
  • Inns: Properties with more than four but no more than 40 rooms for short-term rental.

Application and Inspection Process

  • Completed Application Form: The application form must be filled out completely and accurately, available from the Old Lyme Zoning Department.
  • Floor Plan: A detailed floor plan showing egress and parking is required.
  • Property Layout Plan: A site plan detailing the location of the short-term rental unit, water supply, and sewage disposal system must be submitted.
  • Health District Approval: Proof of approval from the Ledge Light Health District is required, including a review of the septic system and well water.
  • Safety Certification: Property owners must attest that all smoke, fire, and carbon monoxide alarms are properly installed, tested monthly, and operational. The Fire Marshal's office may require a safety inspection.

Annual Renewal

  • Annual Permit Renewal: Permits must be renewed annually, which requires updated inspections and permits.

Enforcement and Penalties

  • Immediate Revocation of Permit: Failure to comply can result in the immediate revocation of an existing permit.
  • Denial of Permit Renewal: Non-compliance can lead to the denial of permit renewal.
  • Cease-and-Desist Order: The town may issue a cease-and-desist order.
  • Other Enforcement Actions: Additional enforcement actions, including legal or equitable remedies and citation hearings, may be taken.

Additional Regulations

  • Parking and Noise: The town has regulations to address parking violations and noise disturbances, which may be subject to additional enforcement.
  • On-Site Host: While not explicitly stated for Old Lyme, nearby regulations suggest careful oversight; however, Old Lyme's specific rules do not mandate an on-site host.

Compliance and Monitoring

  • Property owners must ensure their properties meet all local health and safety standards, and the town may conduct inspections to verify compliance.
Neighborhood Performance

Top Airbnb Neighborhoods in Old Lyme, Connecticut

Why Old Lyme is Appealing for Guests

Old Lyme, a coastal town in southeastern Connecticut, is a desirable vacation spot due to its:- Proximity to popular tourist destinations like Mystic Seaport.- Charming New England architecture and scenic rural atmosphere, including beautiful shorefront, wetlands, and treed hills.- Variety of activities such as shopping, dining, nightlife, and access to parks and attractions like the Four Mile River Farm and the Florence Griswold Art Museum.

Top Neighborhoods Generating Airbnb Revenue

1. Central Old Lyme Village

  • This area is highly appealing due to its central location, historic homes, and proximity to restaurants, beaches, art galleries, and museums. Properties like the Luxurious Old Lyme King Bedroom Suite, located in the historic Ludington House, are highly rated by guests.

2. Beachfront and Coastal Areas

  • Neighborhoods near the beach, such as those offering direct access to the shore or views of the Connecticut River, are highly sought after. These areas provide easy access to local beaches, making them ideal for summer rentals and attracting high demand.

3. Rogers Lake and Surrounding Areas

  • Properties around Rogers Lake, such as the Early 1900s Log Cabin, offer a quiet getaway submerged in nature while still being minutes from local attractions and highways. This blend of natural beauty and convenience makes these neighborhoods attractive to guests.

4. Town's End and Historic Districts

  • Areas like Town's End Farm, which features a private apartment in a 100+ year old carriage stable, are popular due to their historic charm and proximity to local churches, the shore, and the Connecticut River. These neighborhoods offer a secluded yet convenient stay.

5. Forest and Mid-Century Modern Areas

  • Neighborhoods with mid-century modern homes, such as the Modern Luxurious CT Country Home, are appealing for their tranquil designer spaces and updated amenities. These properties, often located in forested areas, provide a peaceful getaway with easy access to New York City and Boston.

These neighborhoods in Old Lyme are favored by guests for their unique blend of historical charm, natural beauty, and convenient access to local attractions and amenities.

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Design Tips

Tips for Furnishing and Designing an Inviting Airbnb in Old Lyme, Connecticut

Define Your Property's Aesthetic

  • Align your design with the coastal charm of Old Lyme, incorporating nautical themes, light color palettes, and beach-inspired decor to create an inviting atmosphere.

Choose Functional and Comfortable Furniture

  • Invest in modern, high-quality furniture that is both stylish and functional. This includes comfortable seating, fully equipped kitchens, and amenities like propane grills on decks.

Emphasize Outdoor Spaces

  • Provide outdoor spaces such as patios or decks where guests can enjoy the seaside air. These areas should be well-furnished and maintained to enhance the guest experience.

Incorporate Cozy Amenities

  • Include cozy fireplaces for relaxation during cooler evenings, and ensure that the property is well-insulated and equipped with modern heating and cooling systems.

Focus on Family-Friendly Features

  • For properties targeting families, include amenities like cribs, play areas, high chairs, and travel cribs to make the space more appealing and convenient for family vacations.

Use Upscale Kitchenware and Linens

  • Equip the kitchen with upscale kitchenware and provide high-quality linens and bedding to create a luxurious feel, justifying higher rental rates.

Maintain a Clean and Well-Organized Space

  • Ensure the property is highly rated for cleanliness. Regularly update and maintain the space to keep it clean, organized, and appealing to guests.

Incorporate Local and Rustic Elements

  • Use rustic elements that complement the natural surroundings of Old Lyme, such as natural materials and local decor, to enhance the overall aesthetic of the vacation rental.

Ensure Compliance with Local Regulations

  • Adhere to Old Lyme's zoning regulations and health standards. Ensure all necessary permits are obtained, and safety inspections are conducted to meet local requirements.

Provide Modern Amenities

  • Include modern amenities such as Wi-Fi, touch lighting, Bluetooth music systems, and dedicated workspaces to cater to a variety of guest needs.

Highlight Scenic Views and Proximity

  • If the property has scenic views or is close to popular attractions like beaches, parks, or local events, highlight these features in your listing to attract more guests.
Insider Tips

Discovering Old Lyme, Connecticut: Local Attractions and Insider Tips

Local Attractions

Art and Culture

  • Florence Griswold Museum: The birthplace of American Impressionism, featuring the historic Griswold home, original painted door panels, and a gallery showcasing works from the Lyme Art Colony.
  • Lyme Art Association: The first gallery in America built by a summer art colony, opened in 1921 on land donated by Florence Griswold.
  • Lyme Academy of Fine Arts: A prestigious art school focusing on the history, tradition, and principles of drawing, painting, and sculpture.
  • The Cooley Gallery: A nationally-recognized gallery displaying American art from the mid-19th to the 20th century.
  • Sandy Garvin Gallery: A studio featuring local landscape artist Sandy Garvin.

Nature and Outdoor Activities

  • Ferry Landing State Park: Offers stunning views of the Connecticut River, a 0.6-mile boardwalk, and opportunities for boating, picnicking, and hiking.
  • Rogers Lake: A 265-acre lake with surrounding woodland, perfect for boating, fishing, and observing local wildlife.
  • Scenic Trails: Old Lyme has numerous trails ideal for hiking and birdwatching, including those in the open-space areas of the town.

Other Attractions

  • Studio 80 + Sculpture Grounds: A 4.5-acre park featuring over a hundred contemporary sculptures and a studio where local artists create their works.
  • The Side Door Jazz Club: A venue for jazz music enthusiasts, offering live performances.
  • Connecticut Art Trail: Explore unique art attractions and cultural delights in nearby towns.

Insider Tips

Dining

  • Café Flo: Located at the Florence Griswold Museum, open from May to October. Reservations recommended.
  • The Old Lyme Inn: Offers casual dining and is conveniently located across the street from the Florence Griswold Museum.
  • Old Lyme Ice Cream Shoppe and Cafe: A cozy spot for soup, salad, and homemade ice cream.
  • The Hideaway: A short drive from the museum, serving American cuisine.

Accommodations

  • The Old Lyme Inn: A cozy inn with 13 guest rooms, located across from the Florence Griswold Museum.
  • The Inn at Harbor Hill Marina: A waterfront inn in Niantic, offering special packages and a 20-minute drive from the museum.
  • The Copper Beech Inn: In Essex, a 15-minute drive from the museum, with a renowned AAA Four-Diamond restaurant.
  • Captain Stannard House Country Inn: In Westbrook, about 15 minutes from the museum and close to the beach.

Shopping

  • Lyme Street: A mile-long stretch of exquisite shops, fine dining, and cultural institutions, perfect for a leisurely stroll.

Seasonal Activities

  • Boat Rentals: Available for exploring the Connecticut River and Long Island Sound.
  • Nature Walks: Enjoy the scenic trails and natural beauty of Old Lyme.
  • Local Events: Check for seasonal events, art exhibitions, and live performances that enrich the town's cultural scene.

By sharing these attractions and tips, your guests can fully immerse themselves in the artistic, natural, and cultural beauty of Old Lyme, Connecticut.

Practical Tips

Practical Tips to Run a Successful Short-Term Rental Business in Old Lyme, Connecticut

To ensure a smooth and compliant short-term rental business in Old Lyme, Connecticut, several practical tips can be invaluable.

Noise Regulations and Guest Communication

Inform your guests about the quiet hours and noise regulations in Old Lyme to avoid potential complaints and enforcement actions. Include a section in your house manual or welcome message that clearly outlines the quiet hours and the importance of respecting the neighborhood.

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 manual should also cover the location of safety equipment like smoke, fire, and carbon monoxide alarms, and how to use them.

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, including photos and step-by-step guides to ensure a hassle-free arrival.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests understand where they can park and any specific regulations they need to follow. This is particularly important in Old Lyme, where parking violations can lead to enforcement actions.

By adhering to these tips, you can enhance the guest experience, comply with local regulations, and maintain a positive reputation for your short-term rental business in Old Lyme.

Local Vendors

Here is a brief list of house cleaning providers in Old Lyme, Connecticut:

House Cleaning Services in Old Lyme, CT

The Maids Old Lyme CT

  • Specializes in house cleaning services with trained cleaning teams to ensure a spotless home.

Sparkling and Beyond

  • A professional cleaning company based in Old Lyme, using state-of-the-art equipment and with years of experience.

Various Providers Listed on Angi

  • A list of top-rated house cleaners in Old Lyme, CT, with real reviews and ratings.

Providers Listed on Care.com

  • Affordable house cleaning options in Old Lyme, CT, with listings by rates, reviews, experience, and more.

Note that there are no specific repair or maintenance providers mentioned in the sources provided, only house cleaning services.

Management fees

Old Lyme, Connecticut: Understanding Short-Term Rental Management Fees

In Old Lyme, Connecticut, the fees for managing short-term rentals can vary significantly, typically ranging 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 around 20-30% of the rental income.

Basic service packages, which may only include essential management tasks, can be more affordable, starting at around 10% of the rental revenue. Additionally, hosts may incur extra fees for services like cleaning, repairs, or property design and amenities. These fees are usually calculated separately from the management fee and can impact the overall cost of operating a short-term rental property in Old Lyme.

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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 Old Lyme should generate as a short term rental and look at the performance of properties around yours.

35,000+ Properties
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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 Old Lyme.

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 Connecticut