Savannah, Georgia, is experiencing a thriving short-term rental market, with high occupancy rates, lucrative monthly incomes exceeding $3,400, and strong demand driven by its popularity as a tourist destination and its rich historical charm.
Thriving Short-Term Rental Market in Savannah, Georgia
Savannah, Georgia, continues to excel as a lucrative destination for short-term vacation rentals, driven by its rich history, cultural events, and picturesque neighborhoods. The city boasts an impressive Airbnb occupancy rate, ranging from 65% to 75% on average, with peak tourist seasons in spring and fall often exceeding 80% occupancy.
The average daily rate (ADR) for Airbnb rentals in Savannah has also seen a notable increase, outperforming many other cities in the region. With seasonal fluctuations favoring higher occupancy rates during weekends and peak tourist seasons, short-term rental investors can anticipate robust returns. The city's steady stream of tourists, digital nomads, construction workers, and the vibrant movie industry further bolster the stability and profitability of the short-term rental market in Savannah.
Short-Term Rental Regulations in Savannah, Georgia for 2024
Definition and Eligibility
- Short-term vacation rentals (STVRs) are defined as the rental of an entire dwelling unit for 30 days or less.
Zoning and Location
- STVRs are permitted within the short-term vacation rental overlay district, which includes the Downtown, Victorian, and Streetcar local historic districts.
- Outside the overlay district, STVRs are allowed in certain Business and Agriculture zoning classifications (B-C, B-N, B-L, and A-1).
Caps and Exemptions
- New STVRs in residential areas of the Downtown and Victorian districts are subject to a 20% cap of residential parcels within each ward. Owner-occupied parcels are exempt from this cap.
- Applications filed before September 28, 2017, are grandfathered and can be renewed.
Application and Licensing
- STVR managers must complete an application process and secure a STVR certificate through the STVR Registration Portal.
- The new STVR application fee is $400, and the annual renewal fee is $250. Both fees are non-refundable.
Required Documents
- Completed STVR Application
- Life Safety Compliance Verification Form
- Regulation Form
- HOA Affidavit (if applicable)
- Proof of Ownership
- Copy of Driver's License/State ID/Passport.
Life Safety and Amenities
- Properties must meet life safety standards, including the installation of smoke alarms, carbon monoxide detectors, and fire extinguishers.
Occupancy and Guest Limits
- Properties with two or fewer bedrooms are limited to four adult guests, and those with three or more bedrooms have specific occupancy restrictions.
- Maximum occupancy advertised must match the occupancy stated on the application.
Taxes
- Owners must collect and remit hotel/motel taxes to the city at a rate of 8% (as of September 1, 2023) and state use and sales tax at a rate of 7%.
Compliance and Enforcement
- Owners must agree to use best efforts to ensure the STVR does not disrupt the neighborhood or interfere with neighbors' quiet enjoyment of their properties.
- Violations, such as operating without a certificate or exceeding maximum occupancy, are subject to fines starting at $100-$150 per occurrence. The certificate may be revoked for multiple violations.
Notification and Reporting
- New STVR applicants must notify all adjacent property owners and provide specific information such as property address, on-site parking details, and maximum occupancy requirements.
- Any change in rental agent must be reported within five business days.
Additional Requirements
- Properties must be safe, clean, and well-furnished for guests, including essential amenities like linens, towels, kitchenware, and Wi-Fi.
- Proof of homeowners insurance indicating the property is used as a short-term rental is required.
Top Neighborhoods Generating Airbnb Revenue in Savannah, Georgia
1. Historic District
The Historic District of Savannah is a top earner for Airbnb revenue due to its central location, historic charm, and proximity to major attractions. Guests are drawn to the area's picturesque town squares, historic homes, and easy access to River Street, City Market, and numerous restaurants and nightlife spots. Properties like the "Bright, sophisticated house" near Troupe and Whitefield Squares, and the "Modern getaway in 1891 Victorian house" off Forsyth Park, offer a blend of historic and modern amenities that appeal to a wide range of travelers.
2. North Historic District
This area is highly appealing due to its prime location near Oglethorpe Square and the Owens-Thomas House. Guests can enjoy apartments like "Stevie's on Oglethorpe Square," which offer full kitchens, balconies overlooking historic squares, and convenient access to dining and entertainment on Broughton and River Streets.
3. Midtown/Starland District
Midtown Savannah, including the Starland District, is popular for its unique blend of old and new. Guests appreciate the area's relaxed atmosphere, proximity to Forsyth Park, and the variety of bars, restaurants, and coffee shops. Properties such as "The Green Gecko" and the "Cute Starland district Guesthouse!" offer a cozy and functional space for couples and families, with easy access to the city's main attractions.
4. South Historic District
The South Historic District is another high-revenue area, known for its beautiful architecture and quiet, tucked-away retreats. Guests love staying in places like the "Tiny Carriage House in Heart of Historic Downtown" and the "Modern Getaway in 1891 Victorian Off Forsyth," which provide a mix of historic charm and modern comforts. The area's close proximity to Jones Street, Forsyth Park, and other downtown sites makes it highly desirable.
5. Tybee Island
Although slightly outside the main city, Tybee Island generates significant Airbnb revenue due to its beachside location and relaxed atmosphere. Guests enjoy homes like the "Home in Tybee Island" with its elevated single-story design, marsh-side sunsets, and easy access to beaches, bars, and restaurants. The island offers a perfect getaway for those seeking a beach vacation with the option to explore historic downtown Savannah just a 20-minute drive away.
Furnishing and Design Tips for an Inviting Airbnb in Savannah, Georgia
1. Reflect Savannah's Unique Style
- Incorporate elements that highlight Savannah's historic allure and Southern charm. Use carefully selected decor items, such as traditional furniture pieces, vintage items, and local artwork, to create a welcoming and authentic atmosphere.
2. Highlight Special Features
- If your space has special features like fireplaces, high ceilings, or a hot tub, make them focal points. Use creative staging, such as painting the fireplace a bright color, setting up an outside bar near the hot tub, or arranging a seating area to face a great view.
3. Choose Timeless and Durable Furniture
- Opt for furniture that is both stylish and durable. Avoid cheap, low-quality items that may break or fade quickly. Instead, invest in timeless pieces that reflect the city's charm and can withstand the wear and tear of frequent guests.
4. Be Thrifty and Unique
- Consider buying secondhand furniture to save money and add unique touches to your space. Thrift stores and vintage shops can provide high-quality, one-of-a-kind items that make your Airbnb stand out.
5. Enhance Ambiance with Luxurious Touches
- Invest in soft, high-thread-count sheets, plush towels, and other luxurious amenities to create a welcoming and comfortable environment. These touches can significantly elevate the guest experience.
6. Utilize Smart Storage and Space-Saving Furniture
- Use furniture with smart storage options, such as beds with drawers, sofa beds, and ottomans with hidden storage. This helps keep the space tidy and maximizes functionality.
7. Make the Space Feel Bigger and Brighter
- Use mirrors strategically to make your Airbnb feel larger and brighter. Full-length mirrors and well-placed smaller mirrors can enhance the natural light and create a more spacious feel.
8. Provide Tech-Savvy Comfort
- Integrate smart home features like voice-activated assistants and keyless entry systems to offer a modern and seamless guest experience. Highlight these features in your property listing to attract tech-savvy travelers.
9. Offer Outdoor Pleasures
- If possible, provide outdoor amenities such as a manicured garden, a cozy patio with comfortable seating, or bicycles for exploring the city. These can significantly enhance the guest experience and make your Airbnb more appealing.
10. Ensure Comfort and Practicality
- Make sure your space is comfortable and practical for guests. Provide a solid bed, easy-to-clean furniture, and essential items like a hairdryer, basic toiletries, and a first-aid kit. Prioritize comfort while maintaining a stylish and unique design.
11. Curate Local Experiences
- Offer a guidebook with recommendations for nearby attractions, restaurants, and hidden gems. This helps guests experience the best of Savannah and can lead to positive reviews and repeat bookings.
12. Maintain and Update Regularly
- Plan furniture updates during the off-season or short gaps between bookings to minimize disruption. Ensure your cleaning crew is aware of any new furniture or layout changes to maintain the high standards of your Airbnb.
Discovering Savannah, Georgia: Local Attractions and Insider Tips
Must-See Attractions
Historic Squares
- Explore Savannah's unique grid system featuring over 22 historic squares, each with its own character and historic markers. Popular squares include Johnson, Wright, Chippewa, Madison, and Monterey.
- Enjoy the quieter, more residential squares like Troup Square, Columbia Square, and Monterey Square for a peaceful experience.
Forsyth Park
- Visit Forsyth Park, one of the oldest and most charming parks in the country, known for its mossy oaks, flowering shrubs, and the iconic central fountain.
Historic Landmarks
- The Cathedral of St. John the Baptist, with its striking twin 200-foot white spires, is a skyline landmark. It is located near Lafayette Square.
- The First African Baptist Church on Franklin Square, a National Historic Landmark, offers tours of its history and role in the Underground Railroad.
River Street
- Take a sunset stroll along River Street to watch cargo ships come into port. Check the Marine Traffic website for the best viewing times.
Tybee Island
- Spend a day at Tybee Island for beach activities, dolphin cruises, or kayaking adventures.
Insider Tips
Scenic Walks
- Stroll down Jones Street, considered one of the prettiest streets in the United States, lined with historic homes and Spanish moss-draped oaks.
- Explore Factors Walk for a historic and sometimes spooky experience, featuring landmarks like the Old Cotton Exchange building and Cluskey Vaults.
Water Tours
- Take a dinner cruise on the Georgia Queen steamboat for a unique view of the warehouse district from the water.
- Use the free Savannah Belles ferry for a quick round trip across the river and great views of River Street and the Savannah River Bridge.
Nature and Wildlife
- Visit Skidaway Island State Park for hiking trails through maritime forests and a boardwalk across the marsh.
- Take a kayak tour into the marsh from Tybee Island or the Skidaway River to see local birds, wildlife, and possibly alligators.
Cultural Experiences
- Visit the Pin Point Heritage Museum to learn about the lives of enslaved people and the Gullah/Geechee culture.
- Explore the Telfair Museum of Art, which includes the Owens-Thomas House and the Jepson Center for the Arts.
Tours
- Consider a trolley tour for an overview of the city, especially useful for those with mobility issues or during hot summer months.
- Join a ghost tour to discover why Savannah is known as “America’s Most Haunted City”.
Additional Tips
People Watching
- The historic squares are great spots for people watching and enjoying the local atmosphere.
Seasonal Variations
- Note that the squares look different with each season, so each visit can offer a unique experience.
Local Events
- Check local event calendars for festivals, markets, and other activities that might be happening during your guests' visit.
By sharing these attractions and insider tips, you can help your Airbnb guests have a memorable and enriching experience in Savannah, Georgia.
Practical Tips to Run a Successful Short Term Rental Business in Savannah, Georgia
To ensure a smooth and successful short-term rental business in Savannah, Georgia, several practical tips can be invaluable. Here are some key considerations:
Noise Regulations and Guest Communication
Inform your guests about the strict noise regulations in Savannah to avoid penalties. Include clear details about quiet hours in your digital and physical house manual to set expectations from the outset.
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 be easily accessible and displayed prominently in the rental property.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. This not only enhances guest convenience but also reduces the administrative burden on you.
Parking Instructions
Provide clear parking instructions, accompanied by photos, to help guests navigate any specific parking requirements or restrictions in the area. This can significantly reduce the likelihood of parking-related issues and complaints.
By adhering to these tips, you can enhance the guest experience, ensure compliance with local regulations, and maintain a positive reputation for your short-term rental business in Savannah.
Here is a brief list of house cleaning providers in Savannah, Georgia:
House Cleaning Services in Savannah, GA
Two Maids
- Provides recurring and one-time cleaning services
- Supplies all necessary cleaning equipment and products
- Team of experienced, background-checked, and insured cleaners
- Customizable services to meet specific needs.
Merry Maids
- Offers expert cleaning services with 40 years of experience
- Provides re-energizing solutions for home and life
- Customizable cleaning packages to deliver exceptional results.
Hubbard's Maid Service
- Award-winning cleaning service serving Savannah and nearby communities
- Offers top-to-bottom cleaning, maintenance, vacant home cleaning, laundry, and office cleaning
- Ensures 100% customer satisfaction with a return policy if unsatisfied.
Sparkling Queens Cleaning Services
- Provides residential and commercial cleaning services, including recurring maid services and one-time deep cleanings
- Emphasizes thorough background checks and training for employees
- Known for quality maid services and unbeatable customer service.
Short-Term Rental Management Fees in Savannah, Georgia: A Comprehensive Guide
In Savannah, Georgia, the fees for managing short-term vacation 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, such as MasterHost and PMI Coastal GA, offer a wide array of services including guest communication, marketing, pricing optimization, and maintenance, which generally fall on the higher end of the fee spectrum, often between 12% to 20% per booking.
Basic service packages, which may include only the essential management tasks, can be more affordable, starting at around 10% per booking. Additionally, hosts may incur extra fees for services like cleaning, repairs, and design, which can be bundled into the overall management package or charged separately. For instance, some management companies charge a consumables fee for items like linens and toiletries, and there may also be fees associated with obtaining and renewing the necessary short-term vacation rental certificates and business tax certificates.