The short-term rental market in Springfield, Massachusetts, is thriving, with a median occupancy rate of 61%, average daily rates of $114, and annual host revenues of $22,000, driven by strong demand from tourists, business travelers, and visitors to local universities and attractions.
Thriving Short-Term Rental Market in Springfield, Massachusetts
Springfield, Massachusetts, is experiencing a robust short-term rental market, driven by strong demand and favorable conditions. The city's Airbnb market boasts a median occupancy rate of 61%, indicating a healthy and profitable environment for hosts. With an average daily rate of $114, short-term rentals in Springfield are attracting a diverse range of visitors, from tourists and families to business travelers and students. The city's rich history, vibrant arts scene, and proximity to attractions like the Basketball Hall of Fame and Six Flags New England contribute to its peak season demand during late spring and summer. Even during the off-peak seasons, events such as the Big E and holiday lights at Bright Nights at Forest Park help maintain a steady stream of visitors, making Springfield an excellent location for short-term rental investments.
Short-Term Rental Regulations in Springfield, Massachusetts for 2024
General Requirements
- Owner Occupancy: Short-term rentals must be owner-occupied, meaning the owner must reside in the property.
- Registration: All short-term rentals must be registered with the City of Springfield's Code Enforcement Department before commencing operations.
Licensing
- City-Issued License: All short-term rentals require a city-issued license. There are two types of licenses: Type 1 for owner-occupied primary residences or historic carriage houses in single-family residential (R-SF) and residential townhouse (R-TH) zoning districts, and Type 2 for other residential zoning districts.
- Annual Renewal: Licenses must be renewed annually and are valid for a one-year term from January 1 through December 31.
Safety and Compliance
- Annual Safety Inspection: Short-term rentals must undergo an annual safety inspection.
- Building, Sanitary, Zoning, and Fire Code Compliance: Properties must comply with all building, sanitary, zoning, and fire code requirements. No outstanding violations are allowed.
Guest Limitations
- Guest Capacity: A residential unit offered as a short-term rental is limited to eight guests total, or two guests per guest bedroom, whichever is fewer. No more than four bedrooms can be offered as a short-term rental at a time.
Rental Periods
- Rental Duration: Short-term rentals cannot exceed 90 consecutive or nonconsecutive calendar days per year when the operator is not occupying the residential unit.
- Minimum Rental Period: Rentals for an hourly rate or for durations of fewer than 10 consecutive hours are not permitted.
Prohibited Uses
- Commercial Uses: Commercial meetings and uses are prohibited in short-term rentals.
Tax Requirements
- Massachusetts Lodging Tax: Short-term rental hosts must collect and remit the Massachusetts 5% lodging tax on all rentals.
Violations and Penalties
- Three or More Violations: If a property receives three or more violations within a six-month period, it will be ineligible to be used as a short-term rental for six months from the third or subsequent violation.
Additional Requirements
- Local Contact Information: Operators must provide local contact information and detailed information about the property, including a dwelling floor plan and other specified details.
- Parking and Egress: For rooming units, separate off-street paved parking spaces and approved means of egress are required.
Top Neighborhoods Generating Airbnb Revenue in Springfield, Massachusetts
1. Sixteen Acres
- Appeal: This neighborhood is highly rated for its quiet and convenient location. The "Luxury studio apartment-walkout basement" in Sixteen Acres is a favorite among guests, offering spa-like amenities such as a rain shower head and heated floors, and is close to Western New England University, Springfield College, and American International College.
2. Indian Orchard
- Appeal: With over 230 vacation rentals, Indian Orchard is a popular choice. Guests appreciate the variety of accommodations, including family-friendly and pet-friendly options, and the neighborhood's proximity to local attractions and amenities.
3. Boston Road
- Appeal: This area boasts over 50 vacation rentals and is favored for its central location, making it easy for guests to access various parts of Springfield. The neighborhood offers a mix of family-friendly and pet-friendly rentals, along with dedicated workspaces and WiFi availability.
4. Downtown Springfield
- Appeal: Downtown Springfield is appealing due to its proximity to key attractions such as the Basketball Hall of Fame, MGM Casino, and the Big E Fairgrounds. Rentals here, like the "3rd floor tranquility downtown," offer a convenient and comfortable stay for both business travelers and tourists.
5. Longmeadow
- Appeal: Longmeadow is known for its family-friendly environment and comfortable rentals. The "3 BR Quiet Cape House w/ Hot Tub" in Longmeadow is a popular choice, offering a relaxing and spacious stay with amenities like a hot tub.
These neighborhoods are highly appealing due to their convenient locations, variety of amenities, and the high quality of the rentals, which are consistently highly rated by guests.
Furnishing and Design Tips for an Inviting Airbnb in Springfield, Massachusetts
Defining Your Property's Aesthetic
- Align your furniture and decor with Springfield's unique blend of historical charm and modern amenities. Consider incorporating elements that reflect the city's rich cultural and industrial heritage.
Focus on Functionality and Comfort
- Choose furniture that is both stylish and functional. Opt for pieces like storage beds, sofas with washable covers, and dining tables that are tough and resistant to wear and tear.
Smart Storage Solutions
- Utilize smart storage options such as beds with drawers, wall hooks for coats, pegboards in the kitchen, and stackable containers to keep the space tidy and organized.
Space-Saving Furniture
- Select space-saving furniture like sofa beds, folding tables, or ottomans with hidden storage compartments to maximize the use of your space.
Lighting and Mirrors
- Use mirrors to make your Airbnb feel bigger and brighter. Ensure ample lighting with a mix of natural and artificial light sources to create a welcoming atmosphere.
Accessibility and Inclusivity
- Make your Airbnb accessible to guests with disabilities by incorporating features like ramps, wide doorways, and grab bars in bathrooms.
Local and Timeless Design
- Stick to a theme that reflects Springfield's local style, but opt for timeless, sturdy pieces that will last. Consider contemporary and minimalist designs with hints of historical significance.
High-Quality Bedding and Appliances
- Invest in high-quality bedding and modern kitchen appliances to enhance the comfort and functionality of your space. This can include essentials like a coffee maker, microwave, toaster, and kettle.
Neighborhood-Specific Amenities
- Tailor your furnishings to the specific neighborhood in Springfield. For example, if your property is near cultural attractions or educational institutions, incorporate decor that resonates with these themes.
Seasonal and Local Touches
- Add seasonal and local touches such as plants, local artwork, or decorative items that reflect Springfield's unique character and events. This can help create a memorable experience for your guests.
Maintenance and Cleaning
- Choose furniture that is easy to clean and maintain. Consult with your cleaning crew to ensure they are aware of any new furniture or changes in the layout.
Timing of Updates
- Plan furniture updates during the off-season or short gaps between bookings to minimize disruption and keep your place in top shape for guests.
Discover Springfield, Massachusetts: Top Attractions and Insider Tips
Local Attractions
Museums and Historical Sites
- Springfield Museums: A collection of five world-class museums, including the George Walter Vincent Smith Art Museum, Springfield Science Museum, Lyman and Merrie Wood Museum of Springfield History, Michele and Donald D’Amour Museum of Fine Arts, and the Amazing World of Dr. Seuss Museum. Located at 21 Edward Street.
- Springfield Armory National Historic Site: Commemorates the nation’s first armory, showcasing the largest historic US military small arms collection. Located at 1 Armory Square.
Family-Friendly Attractions
- The Amazing World of Dr. Seuss Museum: Interactive exhibits and sculptures, including the Dr. Seuss National Memorial Sculpture Garden. Free for children under 3 and Springfield residents.
- Forest Park: A 735-acre park featuring a zoo, aquatic garden, picnic areas, and various recreational facilities like baseball fields, tennis courts, and a zoo train.
Entertainment and Sports
- Naismith Memorial Basketball Hall of Fame: A must-visit for basketball enthusiasts, located at 1000 Hall of Fame Avenue.
- MassMutual Center: Hosts concerts, family shows, and sporting events, including home games of the Springfield Thunderbirds hockey team.
- Springfield Symphony Orchestra: Performs at Symphony Hall, offering a rich musical experience.
Outdoor Activities
- Connecticut Riverwalk and Bikeway: A 3.7-mile path for walking, jogging, biking, and rollerblading along the riverfront.
- Riverfront Park: Offers scenic vistas of the Connecticut River and access to various downtown amenities.
Dining and Nightlife
- MGM Springfield: Features several dining options including The Chandler Steakhouse, Costa, TAP Sports Bar, South End Market, and The Roasted Bean.
- Downtown Springfield Dining: Includes restaurants like Max's Tavern, Nadim's Mediterranean Grill, Plan B Burger Bar, and Theodores' Booze, Blues & BBQ.
Insider Tips
Best Times to Visit
- Forest Park: Especially beautiful during Christmas for the lighting show, and a great place to visit any time of the year for outdoor activities.
- The Big E: A 17-day multi-state fair from mid-September to early October, featuring carnival rides, food, concerts, and agricultural exhibits.
Practical Information
- Parking and Admission: Many attractions offer free or convenient parking. Check the specific attraction for admission fees and hours of operation.
- Local Events: Keep an eye out for seasonal events like the Springfield Symphony Orchestra performances and the festive lights at Forest Park during Christmas.
Additional Recommendations
- Six Flags New England: Located just 15 minutes south of Springfield, offering over 50 thrill rides and water rides. Typically open from May to mid-November.
- Van Horn Park, School Street Park, and Heritage Parks: Other popular family-friendly parks in Springfield.
By sharing these attractions and tips, you can help your guests make the most of their visit to Springfield, Massachusetts.
Practical Tips to Run a Successful Short Term Rental Business in Springfield, Massachusetts
To ensure the success and compliance of a short-term rental business in Springfield, Massachusetts, several practical tips can be implemented:
Noise Regulations and Guest Communication
Inform guests about quiet hours and noise regulations to maintain a respectful environment for both the guests and the surrounding neighborhood. Clearly outline these rules in the house manual and during the check-in process to avoid any misunderstandings.
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 cover house rules, including noise regulations, to ensure guests are well-informed and compliant.
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 hosts.
Parking Instructions
Provide detailed parking instructions, accompanied by photos, to help guests navigate parking options easily. This is particularly important given the city's requirement for a parking plan to be approved by the Planning Department before issuing a permit for short-term rentals.
By following these tips, hosts can ensure a smooth and compliant operation, enhancing the overall guest experience and maintaining good relations with the local community.
Here is a brief list of house cleaning providers in Springfield, Massachusetts:
House Cleaning Services
Happy Home Maid Service
- Provides residential, deep cleaning, move-in/move-out, and light commercial cleaning services in Western Massachusetts.
- Founded in 2014, insured, and conducts background checks on employees.
Two Moms Cleaning Service
- Offers weekly, bi-weekly, or monthly cleaning services, as well as one-time and personalized cleaning for residential and commercial properties.
- Serving areas including Amherst, Springfield, and Westfield since 2010.
Boundless Cleaning Services
- Specializes in residential cleaning, including deep cleans, and also offers office space and commercial cleaning services.
- Known for their professionalism, attention to detail, and satisfaction guarantee.
Various Independent Cleaners on Care.com
- A list of 35 affordable house cleaning services in Springfield, MA, with average rates starting at $18/hr and an average rating of 4.6 out of 5 stars based on 64 reviews.
Short-Term Rental Management Fees in Springfield, Massachusetts: A Guide to Service Levels and Costs
In Springfield, Massachusetts, managing a short-term rental 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, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging from 20% to 30% of the rental income.
Basic services, which may include only registration, tax compliance, and minimal oversight, can be less expensive. Additionally, hosts may incur extra fees for services like cleaning, repairs, or design enhancements. These fees are usually calculated after excluding certain costs, such as cleaning fees, to ensure the management fee is based only on the net earnings from the rental. Understanding these fee structures is crucial for hosts to manage their expenses effectively and maximize their revenue from short-term rentals in Springfield.