Airbnb & VRBO Performance in Rehoboth Beach Delaware.

Short-Term Rental Regulations in Rehoboth Beach, Delaware for 2024

Licensing and Fees

• Hosts must obtain a rental license with an annual fee of $150.

Zoning Compliance

• Verify that the property is located in a zone where short-term rentals are permitted. Obtain a Zoning Compliance Letter from the local zoning office.

Health, Fire, and Safety Regulations

• Properties must meet state standards for electrical, plumbing, and egress. A Building and Health Code Compliance Certificate is required, which involves an inspection by the local health department.
• Functional smoke detectors and fire extinguishers must be installed and maintained. Regular fire marshal inspections are required.
• Additional safety regulations apply to properties with pools or hot tubs, including Pool/Hot Tub Safety Certification.

Occupancy Limits

• Overnight occupancy may not exceed two persons per bedroom plus an additional two persons. For example, a rental dwelling with three bedrooms has a maximum occupancy of eight occupants. Children six years of age or younger are not included in the occupant count.

Property Maintenance

• Landlords must conduct and submit a self-inspection of each rental property annually, focusing on life safety, property maintenance, and City Code requirements.
• Exterior and interior property areas must be maintained in a clean and safe condition. Address markings must meet visibility and size requirements.
• Windows, doors, and associated hardware must operate as designed and meet code requirements for egress. Ground fault circuit interrupters (GFCI) must be installed in all bathrooms and kitchen receptacles servicing countertop surfaces.

Local Contact and Tenant Education

• A local contact must be provided who can be reached 24/7 to assist in remediating concerns about the rental property.
• Landlords must educate tenants on how to be good tenants and neighbors.

Business License and Posting Requirements

• A residential rental business license must be posted in a conspicuous place within the rental, along with local contact information and other city ordinance requirements.

Tax Registration

• Hosts must register with the Delaware Division of Revenue to collect and remit state and local taxes on rentals. An 8% state accommodations tax applies, along with any additional local taxes.

Liability Insurance

• While not always legally required, many municipalities strongly recommend or mandate that hosts carry liability insurance for their short-term rental properties.

Application and Inspection Process

• Applications for rental licenses and other necessary documents can be submitted through the DELPROS online licensing portal or the city's Building and Licensing Department.
• New rental properties must be inspected by the city to ensure compliance with city ordinances, state regulations, and the 2018 International Property Maintenance Code.

Top Airbnb Revenue-Generating Neighborhoods in Rehoboth Beach, Delaware

1. Downtown Rehoboth Beach

• Appeal: This area is highly appealing due to its proximity to the beach, boardwalk, and a plethora of restaurants, shops, and entertainment venues. Guests can walk to everything from Grotto's to Funland, making it an ideal location for those who want to be in the heart of the action.
• Revenue Potential: Properties here benefit from high occupancy rates and premium nightly prices, contributing to significant annual revenue. For example, beachfront condos and homes in this area can generate substantial income due to their prime location.

2. Rehoboth Avenue and Surrounding Areas

• Appeal: This neighborhood is popular for its easy access to Rehoboth Avenue, which is lined with shops, restaurants, and bars. The proximity to the beach and boardwalk, along with the vibrant local scene, makes it a favorite among guests.
• Revenue Potential: The high demand for vacation rentals in this area translates into a strong revenue stream. Properties here often have high daily rates and maintain a high occupancy rate throughout the year.

3. Silver Lake Area

• Appeal: Located just a short walk from the beach and town, the Silver Lake area offers a quieter alternative while still being close to all amenities. Guests appreciate the scenic views and the convenience of walking to town.
• Revenue Potential: This area attracts families and couples looking for a more relaxed atmosphere but still within walking distance to key attractions. The demand for these properties is high, especially during peak season, leading to substantial revenue.

4. West Cape May and Adjacent Neighborhoods

• Appeal: These neighborhoods are attractive due to their central location, making it easy to access the beach, restaurants, and retail shops. The area is also known for its well-maintained homes and convenient parking options.
• Revenue Potential: With properties available for both weekly and shorter stays, this area sees a consistent flow of guests. The combination of high occupancy rates and competitive nightly prices ensures a solid revenue stream for investors.

5. Areas Near the Outlets and Shopping Centers

• Appeal: Guests are drawn to these neighborhoods because of their proximity to outlet shopping, entertainment options like water parks, and a variety of dining choices. The area is also pet-friendly and offers amenities like pools and community spaces.
• Revenue Potential: The diverse range of amenities and activities in this area ensures a high demand for vacation rentals. Investors can expect a steady income from properties here, especially during peak shopping seasons.

These neighborhoods in Rehoboth Beach, Delaware, are highly appealing to guests due to their prime locations, amenities, and proximity to popular attractions, making them lucrative investment opportunities for Airbnb investors.

Creating an Inviting Airbnb in Rehoboth Beach: Design and Furnishing Tips

Embrace the Coastal Charm

• Incorporate nautical and coastal elements such as navy blues, whites, and sandy neutrals into your color scheme and decor.
• Use natural materials like wicker, rattan, and driftwood to add a beachy feel.

Reflect the Local History and Culture

• Incorporate vintage or retro elements that nod to Rehoboth Beach's historical past as a summer capital and spiritual retreat.
• Hang local artwork or prints that depict the beach, boardwalk, and surrounding landscapes.

Utilize Light and Airy Spaces

• Opt for light-colored walls, curtains, and furniture to create a bright and airy atmosphere, mirroring the sunny beach environment.
• Ensure ample natural light by keeping windows unobstructed and using sheer curtains.

Comfortable and Functional Layout

• Design the space with a relaxed, beach-house vibe, including plush sofas and comfortable seating areas.
• Include functional elements like built-in storage for beach gear and amenities such as beach towels and sunscreen.

Highlight Local Amenities

• Provide information and guides about local attractions, such as the boardwalk, Henlopen State Park, and Tanger Outlets.
• Leave recommendations for popular restaurants, bars, and activities like mini golf, arcades, and water sports.

Incorporate Outdoor Living

• If your Airbnb has an outdoor space, furnish it with beach-friendly furniture like Adirondack chairs and hammocks.
• Add decorative elements such as seashells, starfish, and nautical-themed planters.

Family-Friendly Features

• Include amenities that cater to families, such as games, puzzles, and a selection of DVDs or streaming services.
• Ensure there are comfortable sleeping arrangements and enough storage for family gear.

Tax-Free Shopping Inspiration

• Since Rehoboth Beach is tax-free, consider decorating with items that reflect this shopping advantage, such as vintage shopping bags or signs.
• Leave a list of recommended tax-free shopping spots for your guests.

Seasonal Touches

• Decorate seasonally to reflect the various events and festivals in Rehoboth Beach, such as the Sea Witch Festival in October.
• Update your decor to match the current season, using elements like pumpkins in the fall or festive lights in the winter.

Personal Touches

• Add personal touches that make the space feel welcoming, such as a welcome basket with local treats and a handwritten note.
• Include a guestbook or journal where guests can leave their own stories and recommendations.

Local Attractions and Insider Tips for Rehoboth Beach, Delaware

Must-Visit Attractions

Rehoboth Beach Boardwalk

• A mile-long boardwalk lined with old-fashioned family amusements, attractions, beach stores, and a variety of restaurants. It's a hub for festivals and events throughout the year.

Funland

• Located right off the boardwalk, Funland offers classic amusement park rides, arcade games, and the Haunted Mansion.

Dogfish Head Brewery & Tours

• Enjoy free tours of the brewery, which are available on a first-come, first-served basis. The brewery opens at 11:00 AM, and noon on Sundays.

Jungle Jim’s River Safari Water Park

• Delaware's largest waterpark, offering a fun-filled day for families with various water slides and attractions.

Tanger Outlets – Rehoboth

• Shop at over 130 stores and designer outlets across three locations on Route 1. Perfect for tax-free shopping.

Outdoor Activities

DelMarVa Board Sport Adventures

• Rent stand-up paddle boards, windsurfing gear, or kayaks to explore the waters of Rehoboth Bay.

Full Moon Kayak Tour

• Experience the full moon rise while gliding along the calm and shallow waters of Rehoboth Bay.

State Parks and Trails

• Explore the beautiful trails and coastal views in the state parks surrounding Rehoboth Beach.

Family-Friendly Fun

Nick's Mini Golf

• Enjoy a round of mini-golf, a great activity for families and groups.

Sea Rocket Water Adventures

• Take part in parasailing, dolphin-watching tours, or other water adventures.

Zelky's Beach Arcade

• A classic beach arcade with a variety of games and prizes.

Cultural and Entertainment Options

Rehoboth Beach Film Society: Cinema Art Theater

• Catch independent films and art house movies at this local theater.

Clear Space Theatre

• A community theater offering a range of productions and performances.

Insider Tips

Year-Round Events

• Rehoboth Beach is not just a summer destination; it hosts various festivals and events throughout the year, making it a great place to visit any time.

Pet-Friendly

• If you're traveling with your pet, check out the dog-friendly policies and tips for visiting the Delaware Beaches.

Vegetarian and Vegan Options

• Explore the vegetarian and vegan restaurants in Rehoboth and the surrounding beach towns for delicious and plant-based dining options.

Local Tours

• Consider booking local tours, such as Delmarva Discovery Tours, which offer visits to breweries, wineries, and more with hotel pickup available.

Practical Tips to Run a Successful Short Term Rental Business in Rehoboth Beach, Delaware

To ensure a smooth and enjoyable experience for both hosts and guests in Rehoboth Beach, Delaware, several practical tips can be implemented:

Noise Regulations and Guest Education

Inform your guests about the noise regulations and quiet hours in Rehoboth Beach. Include this information in your digital and physical house manual, as well as in a welcome message. This helps in maintaining a good relationship with neighbors and avoids any potential issues.

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 outline the city's regulations, including occupancy limits and safety guidelines.

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 to help them navigate any specific steps, such as unlocking doors or finding parking.

Parking Instructions with Photos

Include detailed parking instructions in your house manual, accompanied by photos to help guests identify the correct parking areas. This reduces the likelihood of parking-related issues and ensures a hassle-free experience for your guests.

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

Here is a brief list of house cleaning providers in Rehoboth Beach, Delaware:

House Cleaning Providers in Rehoboth Beach, DE

Patty’s House Cleaning & Maid Service

• Offers standard and customizable cleaning services
• Specializes in Airbnb and VRBO cleaning
• Fully insured, nationally background-checked, and professionally trained staff
• Services include laundry, inventory reporting, and photo updates of the property.

Fresh as a Daisy Cleaning Service

• Provides residential, commercial, rental, construction, and post-construction cleaning
• Serving the Lower Delaware Beach Area including Rehoboth Beach
• Fully insured and licensed, with free estimates available.

A Personal Touch Cleaning Services

• Offers residential, rental, move-in/out, commercial, and post-construction cleaning
• Pet-friendly and green cleaning services available
• Uses Method products or other eco-friendly options upon request
• Additional services include pet care (feeding, watering, walking).

MaidPro Rehoboth Beach

• Provides expert home cleaning services with a 49-Point Checklist™
• Trained PROs and flexible scheduling options
• Known for sparkling clean houses and reliable service.

Short-Term Rental Management Fees in Rehoboth Beach, Delaware

In Rehoboth Beach, Delaware, 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 companies, which handle comprehensive tasks such as guest communication, marketing, maintenance, and property inspections, usually charge fees at the higher end of this spectrum. For example, companies like Summer and 360 Property Solutions offer full-service management, with fees starting at around 20% of the booking revenue, excluding cleaning fees.

Basic services, such as marketing or tenant screening, may be available at lower rates for property owners who prefer to handle some aspects of the rental process themselves. Additionally, there may be extra fees for services like cleaning, repairs, or professional design and furnishing of the rental property.

Overall, the choice of management service level and associated fees depends on the owner's needs and the level of involvement they wish to maintain in managing their short-term rental properties.