Winston-Salem, North Carolina, presents a highly profitable and stable market for short-term rentals, with a median occupancy rate of 58%, an average daily rate of $121, and an annual host income of $26,000, all within a regulatory environment that is notably lenient and Airbnb-friendly.
Thriving Short-Term Rental Market in Winston-Salem, North Carolina
Winston-Salem, North Carolina, is experiencing a robust and profitable short-term rental market, making it an attractive destination for both travelers and investors. With a median occupancy rate of 58%, indicating that typical short-term rental listings are booked for 212 nights a year, the demand is strong and stable. The average daily rate stands at $121, contributing to an average annual host income of $26,000. This favorable environment, coupled with lenient regulations and no specific ordinances restricting short-term rentals, makes Winston-Salem an ideal location for those looking to invest in the short-term rental sector.
Short-Term Rental Regulations in Winston-Salem, North Carolina for 2024
General Regulations
- State Oversight: North Carolina's state law grants local municipalities the authority to enact their own short-term rental (STR) regulations.
Permitting and Licensing
- No Special Permits Required: Unlike many other cities, Winston-Salem does not require hosts to obtain special business licenses or permits specifically for short-term rentals. However, hosts must comply with general business licensing rules if applicable.
Safety and Building Standards
- Building and Housing Standards: Properties must comply with the Winston-Salem Code of Ordinances regarding structural integrity, utilities, and maintenance. Regular inspections may be conducted to ensure safety and suitability for guests.
Occupancy and Duration
- Occupancy Limits: Hosts must adhere to legal stipulations defining the number of occupants allowed per rental to prevent overuse of residential properties.
- Duration of Stay: Local laws specify that guests may not stay for more than 15 days within a 60-day period, as per North Carolina's state law.
Taxation
- Occupancy Tax: Hosts are responsible for collecting and remitting the local occupancy tax, which must be added to the cost of each rental period.
- Sales and Use Tax: Hosts must also collect and remit sales and use tax on the rental of personal property or certain services.
Zoning and Community Regulations
- Zoning Compliance: Properties must comply with underlying zoning and building code requirements for their property type, including occupancy limits and parking requirements.
- HOA Regulations: Homeowners must comply with Homeowner Association (HOA) regulations, which may include obtaining prior approval, adhering to strict leasing time frames, and informing the HOA about renters.
Health, Safety, and Nuisance
- Health and Sanitation: Rentals must meet basic health and sanitation standards, including providing clean and safe drinking water, properly functioning sewage systems, and sanitary food preparation areas.
- Fire Safety: Properties must have working smoke detectors, carbon monoxide detectors, and fire extinguishers as required by the fire code.
- Noise and Nuisance Ordinances: STRs must not create disturbances or nuisances for neighbors, such as excessive noise, trash, or traffic.
Compliance and Enforcement
- Compliance Measures: Hosts must navigate a complex framework of regulations to ensure guest safety, maintain property standards, and delineate fiscal responsibility. Compliance is non-negotiable and requires thorough understanding and strict adherence to the stipulated measures.
Top Neighborhoods for Airbnb Revenue in Winston-Salem, North Carolina
1. Downtown Winston-Salem
- Appeal: Downtown Winston-Salem is a hub of activity, with guests drawn to its proximity to restaurants, coffee shops, bars, and breweries. Properties like the "Salem Twin Deck" and the "Loft in Innovation Quarter" are highly rated for their central location and unique amenities such as rooftop decks and historic charm.
- Features: Easy walking distance to key attractions, private garden oases, and modern lofts in historic buildings.
2. West Salem
- Appeal: West Salem offers a blend of modern amenities and historic charm. Guests love the "Adorable, Stylish near UNCSA and Downtown" home for its remodeled interior, huge kitchen, and lovely living room. The area is also close to Old Salem and the Cobblestone farmers market.
- Features: Walkable to Old Salem, UNCSA, and downtown amenities; stylishly remodeled homes with large kitchens and private spaces.
3. Ardmore
- Appeal: The historic Ardmore neighborhood is popular for its charming homes and convenient location. The "Cozy Ardmore Bungalow" is a favorite among guests, offering a modern kitchen, fenced backyard with a stone patio, and smart TVs in each room.
- Features: Renovated bungalows, modern kitchens, fenced backyards, and proximity to Wake Forest Baptist Hospital.
4. Old Salem
- Appeal: Old Salem's historic charm and central location make it a magnet for guests. The "Old Salem Getaway" condo is highly rated for its walkability to Old Salem, UNCSA, and downtown Winston-Salem, as well as its access to the Salem Creek trail.
- Features: Historic setting, walkable to Old Salem and UNCSA, close to downtown eateries and breweries.
5. Innovation Quarter
- Appeal: This area is known for its vibrant atmosphere and modern amenities. Guests praise the "Loft in Innovation Quarter" for its unique loft space, excellent downtown location, and extra amenities provided by the host.
- Features: Modern lofts in historic buildings, central location in a bustling area, close to restaurants, bars, and breweries.
These neighborhoods are appealing due to their combination of historic charm, modern amenities, and convenient locations, making them ideal for a wide range of guests seeking different types of experiences in Winston-Salem.
Tips for Furnishing and Designing an Inviting Airbnb in Winston-Salem, North Carolina
Define Your Property's Aesthetic
- Align your property's aesthetic with the local style and market. In Winston-Salem, a blend of historic charm and modern functionality is often appreciated. Consider the city's historic neighborhoods and the natural surroundings to guide your design choices.
Choose High-Quality and Stylish Furnishings
- Invest in high-quality furnishings that create a welcoming and inviting atmosphere. This can include comfortable bedding, stylish decor, and thoughtfully chosen artwork. High-quality furnishings can enhance guest satisfaction, leading to positive reviews and repeat bookings.
Focus on Statement Pieces
- Identify key areas of the home where you want to splurge on statement pieces, such as the living room or dining room. These pieces, like couches, coffee tables, and dining room tables, define the space and are worth the investment.
Incorporate Local Character
- Integrate local character into your design. For Winston-Salem, this might include elements like hand-built wooden furniture, modern kitchens with concrete counters, and sunlit, plant-filled spaces. These touches can make the space feel more authentic and connected to the local culture.
Utilize Earthy Tones and Natural Materials
- Use earthy tones and natural materials to create a cozy and welcoming atmosphere. This can include wooden elements, textiles, and neutral tones mixed with pops of color, which are popular in creating a genuine Southern experience.
Add Plants and Greenery
- Incorporate plants and greenery to liven up the space. Adding a few plants in the corners or a small garden can enhance the natural beauty of the area and make the space more inviting.
Consider Outdoor Spaces
- If possible, enhance outdoor spaces such as patios, decks, or screened porches. These areas are highly valued by guests for relaxation and enjoying the natural surroundings.
Ensure Functionality and Comfort
- Balance aesthetics with functionality and comfort. Ensure that the space is well-equipped with modern conveniences such as Wi-Fi, self-check-in options, and basic appliances to facilitate a comfortable stay.
Protect Your Furniture
- Implement measures to protect your furniture, such as using durable materials and easy-to-clean surfaces. This is particularly important in a short-term rental to maintain the quality of the furnishings over time.
Pay Attention to Neighborhood Charm
- Choose neighborhoods that offer a mix of accessibility, charm, and proximity to local attractions. In Winston-Salem, areas near downtown, parks, and running/biking trails are highly sought after by guests.
Practical Tips to Run a Successful Short-Term Rental Business in Winston-Salem, North Carolina
To ensure a smooth and successful short-term rental business in Winston-Salem, North Carolina, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform your guests about quiet hours and noise regulations to maintain a peaceful environment for both the guests and the neighbors. Include these details in your house rules and rental agreement to avoid any potential issues.
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 outline house rules, including noise regulations, to ensure guests are well-informed and respectful of the property.
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 and videos to help them navigate any specific steps.
Parking Instructions
Include detailed parking instructions with photos in your house manual to help guests understand where and how to park their vehicles. This can prevent confusion and potential parking violations, ensuring a hassle-free stay for your guests.
By implementing these tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental business in Winston-Salem.
Here is a brief list of house cleaning providers in Winston-Salem, North Carolina:
House Cleaning Services
The Maids
- Offers a 22-Step Cleaning Process, commercial-grade vacuums with HEPA filtration, and disinfection of frequently touched areas. They serve Winston Salem, Lewisville, Kernersville, and Clemmons.
Two Maids
- Provides experienced house cleaners who are fully bonded and insured. They supply all cleaning supplies and equipment, and offer customizable cleaning services, including one-time and recurring cleans.
Molly Maid
- Offers customized cleaning plans with no contracts, including floor cleaning, dusting, and sanitizing. They provide one-time, weekly, bi-weekly, and every four-week services, along with move-out and special project cleaning.
These services focus on providing thorough, healthy, and efficient cleaning solutions tailored to individual needs.
Short-Term Rental Management Fees in Winston-Salem, North Carolina
In Winston-Salem, North Carolina, short-term rental management fees typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the rental income.
Basic service packages, which may include fewer amenities such as limited marketing or no maintenance coordination, can be less expensive, potentially starting at around 10% to 15% of the rental revenue. Additionally, property managers may charge extra fees for services like cleaning, repairs, or design, which can further impact the overall cost.
Choosing the right management service involves balancing the level of service needed with the associated costs to ensure optimal returns on your investment.