The short-term rental market in Salem, Oregon is performing well, with a median occupancy rate of 67%, an average of 245 booked nights per year, and an average daily rate of $110, indicating a strong and profitable market for investors and hosts.
Thriving Short-Term Rental Market in Salem, Oregon
Salem, Oregon is experiencing a robust short-term rental market, marked by impressive occupancy rates and lucrative average daily rates. According to recent data, the median occupancy rate for short-term rentals in Salem stands at an impressive 67%, indicating that these properties are booked for approximately 245 nights per year. This high demand is further underscored by an average daily rate of $110, highlighting the financial viability of investing in short-term rentals in the area. With a diverse range of furnished and well-equipped options available, from cozy one-bedroom apartments to spacious four-bedroom houses, Salem continues to attract a steady stream of travelers and renters, making it an attractive destination for both visitors and investors.
Short-Term Rental Regulations in Salem, Oregon for 2024
License Requirements
- To offer a short-term rental, you must obtain one of two types of licenses: a short-term rental license or an accessory short-term rental license, depending on whether you live in the home and the zoning of your property.
Registration
- You must register your short-term rental annually with the City of Salem, which includes a $50 registration fee. Failure to register can result in fines and future registration prohibitions.
Certificate of Fitness
- A Certificate of Fitness is required annually, which involves a $50 fee and an inspection by the Salem Health Department to ensure the property complies with state and local sanitary codes and is safe for habitation.
Zoning and Operational Standards
- Short-term rentals are subject to specific zoning regulations outlined in Chapter 30 of the Salem Revised Code. New non-owner-occupied short-term rentals are not permitted, and there are restrictions on which neighborhoods can have short-term rentals.
Insurance
- You must maintain a current liability insurance policy for your short-term rental to keep your license in good standing.
Safety Inspections
- Short-term rentals require an annual inspection to verify conformance with safety requirements. Accessory short-term rentals require an inspection at least once every five years.
Operational Requirements
- Activities other than lodging, such as events, gatherings, and commercial activities, are prohibited in short-term rentals.
Local Representative
- You must identify a local representative who is available to respond to any issues or complaints related to the short-term rental.
Guest Information and Registry
- You must provide essential information to guests and maintain a guest registry as per city regulations.
Room Occupancy Excise Tax
- Pursuant to state law, you must collect and remit state/local room occupancy excise tax to the Massachusetts Department of Revenue (note: This applies to Salem, MA, but a similar tax requirement may exist in Oregon; however, the specific details for Oregon are not provided in the sources).
Maximum Occupancy
- While the sources do not specify a maximum occupancy for Salem, Oregon, it is important to comply with any local regulations regarding the number of guests allowed.
Compliance and Enforcement
- The city strictly enforces short-term rental rules, and unregistered or non-compliant rentals may face fines, penalties, and prohibitions on future registration.
Top Neighborhoods for Airbnb Revenue in Salem, Oregon
1. West Salem
- Appeal: West Salem offers a mix of urban and suburban experiences. Guests can choose from a variety of rentals, including cottages and homes, many of which are highly rated for their cleanliness, location, and amenities like pools and dedicated workspaces.
- Revenue: With over 410 vacation rentals available, West Salem is one of the most frequently booked areas, attracting guests with its balance of convenience and comfort.
2. South Salem
- Appeal: South Salem is popular for its family-friendly and pet-friendly rentals. Guests appreciate the area's amenities, such as high chairs, travel cribs, and strollers, making it ideal for families. Additionally, many rentals here feature dedicated workspaces and WiFi, catering to both leisure and business travelers.
- Revenue: Over 470 vacation rentals are available in South Salem, contributing significantly to the local Airbnb revenue.
3. Southeast Salem
- Appeal: Southeast Salem is known for its diverse range of rentals, including homes, apartments, and guesthouses. The area is praised for its cleanliness, location, and modern amenities like fast internet and fully equipped kitchens. It is also home to several family-friendly and pet-friendly options.
- Revenue: With over 430 vacation rentals, Southeast Salem is a lucrative area for Airbnb hosts.
4. Downtown Salem
- Appeal: Downtown Salem offers unique rentals such as brand new custom-built cottages with pools, providing a luxurious and central stay. Guests enjoy the proximity to local attractions, restaurants, and the vibrant city life.
- Revenue: The central location and high-end amenities make Downtown Salem rentals highly sought after, generating significant revenue.
Why These Neighborhoods Are Appealing
- Location: All these neighborhoods offer convenient access to Salem's main attractions, restaurants, and shopping areas.
- Amenities: They provide a wide range of amenities, including pools, dedicated workspaces, WiFi, and pet-friendly options, catering to various guest preferences.
- Family and Pet Friendliness: Many rentals in these areas are designed to accommodate families and pets, making them ideal for a broad range of travelers.
- Cleanliness and Modernity: Guests consistently rate these neighborhoods highly for cleanliness and the quality of the rentals, which often feature modern appliances and comfortable living spaces.
Furnishing and Design Tips for an Inviting Airbnb in Salem, Oregon
General Tips
- Measure and Plan: Start by measuring your rooms and planning the best layout to ensure ample space and unobstructed natural light sources.
- Neutral Color Palette: Use a neutral color palette for walls and large furniture pieces to create a relaxed and welcoming atmosphere.
- Clear Functional Spaces: Ensure each area of your property has a clear purpose, such as a well-defined reading nook, dining area, or relaxation spot.
Furniture Selection
- Durable and Easy to Clean: Opt for furniture that is easy to clean and made from materials that resist stains. Avoid real and faux leather for sofas; instead, choose sofas with washable covers.
- Smart Storage: Use beds with drawers, wall hooks, pegboards in the kitchen, and stackable containers to maximize storage and keep the space tidy.
- Space-Saving Furniture: Consider sofa beds, folding tables, and ottomans with hidden storage compartments to enhance functionality.
- High-Quality Essentials: Invest in a solid bed with a memory foam mattress, high-quality towels, and durable kitchenware.
Decor and Local Touches
- Local Culture and History: Incorporate elements that reflect Salem's local culture or history through artwork, decorative items, or a guidebook with local recommendations.
- Minimal Personal Items: Avoid leaving personal items like clothes, photos, or overpacked bookshelves to maintain a hotel-like feel and prevent guests from feeling intrusive.
- Attractive Lighting: Use lighting fixtures that are not too office-like and ensure good lighting, especially in working areas. Consider adding desk lamps and ensuring easy access to power outlets.
Guest Amenities
- Essential Items: Stock up on essential items like toiletries, basic cooking ingredients, a first aid kit, and a hairdryer to enhance guest satisfaction.
- Comfort and Entertainment: Provide comfortable, lightweight chairs, and include items like games, cards, and informative books for guests to enjoy during their stay.
Accessibility and Safety
- Accessibility Features: Consider making your Airbnb accessible to guests with disabilities by adding ramps, wide doorways, and grab bars in bathrooms.
- Safety Equipment: Install smoke detectors, carbon monoxide detectors, and a first aid kit to ensure guest safety.
Outdoor and Additional Touches
- Outdoor Spaces: If applicable, create inviting outdoor spaces for relaxation and ensure convenient access to nature trails and local attractions.
- Pet-Friendly: Consider adding pet-friendly amenities if your property allows pets.
- Scent and Ambiance: Use quality shampoo and soap, and perfume the house before guests arrive. Leave scented candles for guests to use.
By following these tips, you can create an inviting and uniquely styled Airbnb in Salem, Oregon, that reflects the city's charm and meets the needs of your guests.
Discovering Salem, Oregon: Local Attractions and Insider Tips for Your Guests
Local Attractions
Parks and Outdoor Activities
- Riverfront Park: A must-visit, featuring the iconic Salem's Riverfront Carousel, playgrounds, an outdoor amphitheater, and the Eco-Earth Globe sculpture. It's a great spot for a family outing or a leisurely stroll along the Willamette River.
- Minto-Brown Island Park: Offers relaxing green spaces, nature trails, and a serene atmosphere perfect for walking or biking.
- Bush Pasture's Park: Another tranquil park with beautiful gardens and walking trails.
- Silver Falls State Park: Located just a half-hour drive from Salem, this park is renowned for its stunning waterfalls and the Trail of Ten Falls Loop.
Historic Sites and Museums
- Oregon State Capitol: An architectural masterpiece with marble finishes and murals inside the dome. Take the 121 spiral steps to the top for a panoramic view.
- Deepwood Estate: A historic Queen Anne Victorian-style mansion with guided tours, beautiful stained-glass windows, and intricate woodwork. The surrounding gardens are also a highlight.
- Gilbert House Children's Museum: An interactive learning center with hands-on exhibits focusing on STEAM concepts. Ideal for families with children.
- Elsinore Theater: A 90-year-old theater hosting various events, including theatrical arts, movies, and live music shows.
Family-Friendly Attractions
- Enchanted Forest: A theme park located 20 minutes south of Salem, featuring themed areas like Storybook Lane and Western Town, along with rides and attractions.
- Salem's Riverfront Carousel: Hand-carved by local volunteers, this carousel is a beloved attraction in historic downtown Salem.
Other Attractions
- Schreiner's Iris Gardens: A beautiful garden known for its irises and other flowers, perfect for a peaceful visit.
- Mt. Angel: A nearby town with a rich German heritage, known for its Oktoberfest celebrations and traditional German cuisine.
Insider Tips
Dining and Shopping
- Historic Downtown Salem: Explore the vibrant shopping district and enjoy local restaurants, cafes, and bakeries. Don't miss the summer farmer’s markets for locally-raised produce and hand-crafted products.
- Evening Land Vineyards: For wine enthusiasts, this award-winning winery offers an unforgettable tasting experience.
Events and Activities
- Arts Fairs and Music Events: Salem hosts various arts fairs, theater performances, and music events throughout the year. Check local listings for upcoming events.
- Sports Tournaments: If your guests are sports enthusiasts, they might be interested in the sports tournaments held in the city.
Local Favorites
- Archive Coffee & Bar: A local favorite for coffee and a relaxed atmosphere.
- Xicha: For a taste of international cuisine, Xicha is a highly recommended spot.
By sharing these attractions and insider tips, you can help your Airbnb guests make the most of their visit to Salem, Oregon.
Practical Tips to Run a Successful Short-Term Rental Business in Salem, Oregon
To ensure a smooth and enjoyable experience for both you and your guests, here are some practical tips for running a successful short-term rental business in Salem, Oregon.
Noise Regulations and Quiet Hours
Inform your guests about the city's noise regulations and quiet hours to avoid any potential issues. Include a section in your house manual detailing the quiet hours and any specific noise restrictions. This can help maintain a positive relationship with your neighbors and prevent any complaints.
Creating a Comprehensive House Manual
Develop 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 fire extinguishers, fire exits, and other safety features as required by Salem's safety certification regulations.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and ensure that guests have all the necessary access codes before their arrival.
Parking Instructions with Photos
Include detailed parking instructions in your house manual, accompanied by photos to help guests understand where and how to park. This can reduce confusion and potential parking violations, which are regulated under Salem's zoning and operational standards.
By following these tips, you can enhance the guest experience, comply with local regulations, and maintain a successful and hassle-free short-term rental business in Salem, Oregon.
Here is a brief list of house cleaning providers in Salem, Oregon:
House Cleaning Services in Salem, OR
The Cleaning Authority
- Offers professional maid services with a 100% satisfaction guarantee.
- Uses environmentally responsible cleaning products and fully bonded and insured professionals.
- Provides a free, in-home estimate and a detail-clean rotation system.
Serenity Cleaning LLC
- Provides comprehensive home cleaning services, including top-to-bottom cleaning, move-in/move-out cleaning, and office cleaning.
- Offers customized cleaning plans and a dedicated team of trained cleaning technicians.
Merry Maids of Salem
- Offers 40 years of experience in comprehensive home cleaning services.
- Provides free estimates for their cleaning services.
Local House Cleaning Services Listed on Care.com
- Includes various individual cleaners and small services, with an average rate of $19/hr and an average experience of 3 years.
- Rated 4.7 out of 5 stars based on customer reviews.
House Cleaners Listed on Angi
- A list of top-rated house cleaners in Salem, OR, with reviews and ratings to help in selecting the right service.
- Includes information on services offered, pricing, and other important considerations.
Salem, Oregon Short-Term Rental Management Fees: A Comprehensive Guide
In Salem, Oregon, managing a short-term rental property can incur management fees that typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, which handle everything from guest communication and marketing to maintenance and cleaning, usually charge fees at the higher end of this spectrum, often starting at 15% to 25% of the revenue.
In contrast, basic or half-service management may be more budget-friendly, with fees starting as low as 10%, but these services often leave more of the operational responsibilities to the property owner.
Additionally, property owners may need to consider extra fees for services such as cleaning, repairs, and design, which can vary based on the specific needs of the property and the management company's policies. Understanding these fees is crucial for property owners to ensure they are maximizing their rental income while complying with Salem's strict short-term rental regulations.