Airbnb & VRBO Performance in Orange Beach Alabama.

Short-Term Rental Regulations in Orange Beach, Alabama for 2024

General Prohibitions and Exceptions

• Short-term vacation rentals of less than two weeks are prohibited in single-family residential properties.

Licensing Requirements

• A new vacation rental license is required for rentals of 14 days or more. Current short-term rental licenses will be grandfathered in until they expire, after which the new license must be obtained.
• The new vacation rental license costs $500 per year.

Zoning and Property Types

• The regulations do not apply to condominiums or properties outside of residential zones.
• Properties in RS (Single-family residential) and MHS (Mobile Home Subdivision) zoning districts have specific regulations.

Compliance and Fees

• Short-term rental owners must collect and remit lodging taxes. For rentals booked through Airbnb, the platform automatically collects these taxes. For other platforms, owners must collect and file the taxes themselves.
• A business license is required, with specific fees and renewal requirements.

Occupancy Limits

• Occupancy is limited to two persons per bedroom plus two additional persons, with fines of $100 per day for violations.

Noise and Nuisance Regulations

• Strict noise and nuisance ordinances are in place to maintain neighborhood peace. Specific quiet hours and fines for violations are enforced.

Other Requirements

• Properties must comply with local fire codes and other safety regulations.
• Owners must ensure their properties are well-maintained and free of litter and other nuisances as per the city's zoning ordinance.

Top Neighborhoods for Airbnb Revenue in Orange Beach, Alabama

Overview of Profitable Areas

Orange Beach, Alabama, is a highly sought-after destination for Airbnb investors due to its attractive beachfront properties, high rental demand, and favorable revenue metrics. Here are some of the top neighborhoods and areas that generate significant Airbnb revenue:

1. Beachfront Properties Along West Beach Blvd

• Annual Revenue: Not specifically provided for Orange Beach, but beachfront properties generally yield high revenues.
• Appeal: These properties offer direct access to the beach, stunning ocean views, and proximity to various water sports and activities. Guests are attracted to the convenience and scenic beauty of these locations.

2. Properties in HOA Communities Near the Beach

• Annual Revenue: Typically ranges from $75,000 to $100,000.
• Appeal: These communities often feature amenities like pools, shared outdoor spaces, and are located a short distance from the beach. They attract families and groups looking for a comfortable and well-maintained environment.

3. Waterfront Condos and Homes

• Annual Revenue: Can exceed $100,000 for well-designed properties.
• Appeal: Waterfront condos and homes are highly desirable due to their ocean views, direct beach access, and the potential for high-end amenities. These properties are particularly appealing to small families and couples seeking a luxurious beach experience.

4. Properties in Popular Rental Channels Like Brett Robinson Vacation Rentals

• Annual Revenue: Varies, but properties managed by reputable companies like Brett Robinson tend to perform well.
• Appeal: These properties benefit from professional management, ensuring high standards of maintenance and customer service. Guests are drawn to the reliability and quality associated with these managed properties.

Key Factors Contributing to Appeal

• High Occupancy Rates: Orange Beach maintains an average occupancy rate of 60%, indicating consistent demand throughout the year.
• Amenities: Properties with amenities such as kitchens, internet, air conditioning, washers, and pools are highly sought after by guests.
• Proximity to Attractions: The area's proximity to water sports, golf courses, and other tourist attractions makes it an ideal destination for various types of travelers.

By focusing on these neighborhoods and ensuring the properties are well-maintained and equipped with desirable amenities, investors can maximize their Airbnb revenue in Orange Beach, Alabama.

Tips for Furnishing and Designing an Inviting Airbnb in Orange Beach, Alabama

1. Choose Sturdy, High-Quality Furniture

• Opt for solid wood over particle board and ensure that all furniture pieces are durable and long-lasting. This is crucial since Airbnb guests may not handle your belongings with the same care as you do.

2. Prioritize Easy-to-Clean Furniture

• Select furniture that is easy to clean, such as leather upholstered chairs and wooden headboards. For fabrics, use ScotchGuard and consider using a portable cleaner like the Bissel Little Green for spot-cleaning.

3. Ensure Functionality and Purpose

• Each piece of furniture should serve a purpose and be useful to your guests. Avoid unnecessary decor and focus on functional items like cabinets under TVs for storage and small accent tables instead of nightstands.

4. Reflect Local Coastal Design

• Incorporate coastal design elements that resonate with Orange Beach's beach proximity. Use a color palette that includes neutral tones with accents of blue, white, and tan. Add textures reminiscent of the outdoors, such as natural fibers and nautical elements.

5. Optimize Space

• Ensure that your main furniture pieces fill the room appropriately. For high ceilings, use taller pieces, and consider using mirrors above dressers to fill walls and provide additional space for guests to get ready.

6. Enhance Safety and Security

• Mount TVs and large mirrors securely to the wall to prevent accidents and maintain a clean, uncluttered look.

7. Incorporate Modern and Stylish Furnishings

• Modern and stylish furnishings can significantly enhance the guest experience. Choose furnishings that create an inviting atmosphere and reflect the local culture and history of Orange Beach.

8. Consider Outdoor and Recreational Amenities

• Since Orange Beach is known for its outdoor activities and beachfront attractions, consider adding amenities like beach gear, outdoor spaces for entertainment, and access to pools and hot tubs to enhance the guest experience.

9. Maintain an Uncluttered and Clean Space

• Keep the space uncluttered and easy to clean. Avoid unnecessary accent items and ensure that the design remains simple yet vibrant with statement pieces.

10. Test and Ensure Comfort

• For items like sofas, especially sleeper sofas, test them out to ensure they are comfortable and easy to use. This is particularly important in smaller spaces like studio condos.

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

To ensure a smooth and profitable short-term rental business in Orange Beach, Alabama, several practical tips can make a significant difference.

Noise Regulations and Guest Communication

Inform your guests about the local noise regulations and quiet hours to avoid potential fines or penalties. Clearly communicate these rules in your digital and physical house manual, as well as in pre-arrival messages to set expectations.

Comprehensive House Manual

Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should cover everything from appliance usage to emergency contact details, ensuring guests have all the information they need at their fingertips.

Simplified Check-in Process

Implement a simplified check-in process using smart locks to eliminate the need for physical key exchanges. Provide guests with clear instructions on how to access the property, and include parking instructions accompanied by photos to avoid any confusion.

Compliance with Local Regulations

Ensure compliance with Orange Beach's local regulations, including obtaining a business license, collecting and remitting lodging taxes, and adhering to maximum occupancy rules. Staying on top of these requirements will help you avoid legal issues and maintain a positive reputation.

By following these tips, you can enhance the guest experience, reduce potential issues, and maximize the revenue of your short-term rental property in Orange Beach, Alabama.

Here is a brief list of house cleaning, repair, and maintenance providers in Orange Beach, Alabama:

House Cleaning and Maintenance Services

Paradise Services

• Offers residential, commercial, and condo cleaning services.
• Includes deep cleaning, carpet cleaning, tile/grout cleaning, and maintenance services such as minor repairs and replacements (e.g., air filters, light bulbs).

MerMaids

• Specializes in condo and beach house vacation rental cleaning in Orange Beach and Gulf Shores.
• Provides automatic scheduling integration, thorough cleaning, inspection, and maintenance services. They also supply linens and starter kits for guests.

General House Cleaning Services

Care.com Listings

• Lists several local house cleaning services in Orange Beach, AL, with options starting at $16.50/hr. Services include regular and deep cleaning.

HomeAdvisor Listings

• Features various maid services and cleaning professionals in Orange Beach, offering customized cleaning plans, one-time deep cleaning, and recurring cleaning services. Also includes reviews and ratings from homeowners.

While Sweet Home Cleaning Service primarily serves areas like Fairhope, Daphne, and Spanish Fort, it does not specifically mention Orange Beach in its service area.

Orange Beach, Alabama: Understanding Short-Term Rental Management Fees

In Orange Beach, Alabama, 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, which handle guest communication, marketing, and maintenance, often charge higher fees, usually in the 20-30% range. For example, companies like Summer Airbnb management charge around 20% of the booking revenue, excluding cleaning fees.

On the other hand, basic services or companies with tiered commission structures may offer lower fees. For instance, Brett-Robinson charges between 14% to 18% depending on the number of units managed, and also includes additional fees such as a 3% payment processing fee.

Additionally, owners should be aware of other potential fees, including cleaning fees, repair costs, and design or consumables fees, which can further impact their net earnings. Local regulations, such as the requirement to collect and remit lodging taxes, also need to be factored into the overall cost structure.