The Airbnb business has rapidly taken off. The number of active listings over the past 6 years has increased by more than a couple hundred for the Virginia Beach area. Many consumers are often in search of an Airbnb to rent because it can cost a fraction of what some hotels charge. Yet, a recent study conducted from Old Dominion University analyzed Virginia Beach’s lodging business and found that hotels are still totaling greater revenues than Airbnb.
Photo courtesy of the Virginia Beach Convention & Visitors Bureau (CVB)
The item we found interesting for investors we work with is narrowing in on what consumers are looking for in terms of rental size, location, and amenities. More than half of the earnings come from properties with three and four-bedroom rentals and we surmise it’s due to guests needing space to host large groups versus the expense of booking several hotel rooms.
The hotel industry is completely on board with Airbnb being a competitor, as long as their rules are the same. Meaning the hotel industry wants equal sharing of taxes and regulations. Yet, enforcing tax regulations on single bedrooms may not be the most cost effective solution. The costs may very well exceed the revenue for the room. On the other hand, three and four bedroom rentals can sometimes cause safety concerns in regards to cars being a blockade for police and ambulances.
Now, the General Assembly has taken action and tweaked the registration requirements. Beginning this month, those who are offering rental properties for less than 30 days must register. Failure to comply will result in a fee off $500 per violation. For more information, please visit
https://pilotonline.com/business/real-estate/are-short-term-rentals-a-long-term-problem-virginia-beach/article_fea96c7d-af4c-577c-a840-bb431f44f595.html