You can invest in short-term rentals in almost any city in the world! No matter where you buy your vacation home, choosing the right location is important. Knowing which cities are considered “best” for short-term rental investing can make all the difference between success and failure. Several factors should be considered when choosing a city for your investment. Below, we’ll discuss some of the best cities for short-term rentals in America and Europe.
Best Cities for Short-Term Rentals in the US
Los Angeles
Los Angeles is an excellent city for short-term rental investments. It has abundant tourist attractions–such as Hollywood and the beaches of Santa Monica and Venice. The local regulations are relatively lenient regarding renting out properties on a short-term basis. Los Angeles Airbnbs are even permitted in rental properties if you have landlord permission.
Miami
Miami’s tropical climate and vibrant nightlife scene make it one of the best cities in the world to invest in short-term rentals. The city’s laws allow for flexible leasing arrangements, making it easier to rent out properties short-term. Miami Airbnb investment properties also offer competitive returns on investment with reasonable property prices.
On the downside, Miami has one of the highest tax rates in the country–so investors should be aware of this before committing to this market. However, there’s no state income tax in Florida, which help hosts make it up.
New York City
NYC is one of America’s most iconic cities and attracts millions of tourists each year–making it an ideal location for short-term property rentals. Investors should remember that New York City has strict rules regarding tenant rights, but as long as you comply, you can enjoy the Big Apple’s year-round demand for vacation rentals and corporate housing.
Bradenton, Florida
As a hidden gem along the Gulf Coast, Bradenton’s Airbnbs for sale tend to sell fast. The city’s appeal stems from its great, affordable waterfront properties, which offer picturesque views and easy access to the coast. In addition to its affordability, Bradenton’s year-round warm weather ensures a consistent rental demand from vacationers seeking to enjoy the sunshine and pristine beaches. Just a short drive away, Sarasota offers easy access to art galleries, resorts, fine dining, and upscale shopping.
Las Vegas
Las Vegas, often called the “Entertainment Capital of the World,” presents a unique opportunity for short-term rental investors. For many years, Las Vegas Airbnbs and other vacation rentals were heavily regulated in Vegas. However, new Clark County legislation permits vacation rentals as long as they comply with county rules, a few of which include the following:
- Only 1% of houses in Clark County can be granted short-term rental licenses
- All STRs must be a minimum of 1,000 feet away from each other
- All STRs must be a minimum of 2,000 feet away from hotels
The allure of Las Vegas lies in its year-round influx of visitors seeking alternatives to the ostentatious casino hotels that populate the Strip. By offering a more personalized and intimate experience, short-term rentals cater to this growing demand, positioning themselves as a viable investment opportunity in the bustling Las Vegas market.
Greenville, South Carolina
Greenville has recently surfaced as a top-notch destination for investors looking for investment properties in South Carolina. With median property prices fluctuating between $230K and $600K, Greenville Airbnbs for sale offer a lucrative entrance for investors aiming to benefit from the city’s escalating fame. A crucial aspect adding to this allure is the city’s delightful downtown district, which showcases a lively mixture of eateries, stores, and cultural venues. Moreover, Greenville boasts the renowned Falls Park, one of the most sought-after outdoor attractions in the South. It entices visitors from various locations with its stunning waterfalls, picturesque walking paths, and abundant leisure areas.
Best Cities for Short-Term Rentals in Europe
Barcelona, Spain
Barcelona is ideal for short-term rental investments due to its high demand from tourists and business travelers. This city’s attractions, such as the Sagrada Familia, Park Güell, and La Rambla, draw in visitors worldwide. Additionally, it has excellent public transportation options and a vibrant nightlife scene.
Paris, France
Paris is one of Europe’s most popular tourist destinations, with iconic landmarks like the Eiffel Tower and Notre Dame Cathedral. Attracting millions of visitors annually, Paris also boasts some of the best restaurants in Europe, along with renowned museums and galleries. While short-term rental investments can be profitable here, investors must research and understand the local laws before investing in any property.
Rome, Italy
Rome is another great option for short-term rentals due to its popularity among tourists. Visitors come from all over the world to see the city’s ancient ruins such as the Colosseum or take part in religious pilgrimages at Vatican City. There are plenty of opportunities for investors here, but they should be aware that local taxes can be pretty high compared to other European cities.
Athens, Greece
Athens, Greece, presents a compelling opportunity for investors buying an Airbnb in Europe. Tourists come year-round to marvel at iconic landmarks such as the Acropolis, the Parthenon, and the ancient Agora. This steady influx of visitors creates a consistent demand for accommodation, positioning Athens as an ideal location for short-term rental properties.
Furthermore, the city’s Mediterranean climate, with its warm summers and mild winters, ensures year-round appeal. At the same time, its vibrant gastronomy, bustling markets, and lively nightlife cater to a diverse range of traveler preferences. By investing in an Airbnb property in Athens, investors can capitalize on the city’s enduring allure, benefiting from strong rental demand and a unique opportunity to own a piece of European history.
Dublin, Ireland
Dublin, Ireland, renowned for its rich cultural heritage and welcoming ambiance, has become a prime opportunity for investors seeking to purchase an Airbnb property in Europe. As Ireland’s capital and largest city, Dublin boasts a fascinating history, iconic landmarks like Trinity College and the Guinness Storehouse, and the celebrated literary tradition represented by figures such as James Joyce and W.B. Yeats.
This constant flow of visitors generates a steady demand for accommodations, establishing Dublin as an ideal setting for short-term rental properties. The city’s allure is further enhanced by its lively pub culture, thriving arts scene, and beautiful parks and gardens catering to all travelers. An investment in an Airbnb property in Dublin allows investors to capitalize on the city’s enduring charm and robust rental demand while offering guests a distinctive and unforgettable Irish experience.
Factors to Consider When Choosing a Location for Short-Term Rentals
No matter where in the world you choose to buy a vacation rental, there are several factors to consider when choosing a location. Local regulations and laws should be taken into account, as they can impact your investment’s success. It’s also important to research local zoning laws, rental restrictions, and other legal requirements before making a decision. Additionally, you should understand the market demand for short-term rentals in your location. Being aware of the competition in your area will help you determine if there is enough demand for your property.
Another factor to consider when selecting a location is property prices and returns on investment (ROI). Researching current real estate trends and rental pricing strategies in the area can provide insight into potential ROI from vacation rentals. Understanding what kind of return you could expect from this investment will help you make an informed decision.
Finally, understanding local taxes associated with owning rental properties can also affect profitability. Knowing what kind of taxes must be paid on rental income can give investors an idea of their overall expenses. This way, they can better calculate potential profits from their investments.
FAQs about Best Cities for Short-Term Rentals
Where are the most profitable short-term rentals?
The most profitable short-term rentals vary depending on the location and market conditions. Generally, areas with high tourism or seasonal demand tend to be the most profitable. Additionally, properties in urban centers can offer higher returns due to their proximity to amenities and attractions. Regions experiencing population growth can also provide great opportunities for short-term rental investments. Ultimately, it is important to research local markets carefully before investing in a property.
Is owning an international short-term rental worth it?
Owning an international short-term rental can be worthwhile, depending on the location, seasonal demand, and your financial objectives. One of the primary advantages of investing in an international short-term rental is the potential for higher rental income, as popular tourist destinations often command premium rates during peak seasons. Additionally, diversifying your investment portfolio with international properties can help mitigate risks associated with economic fluctuations in a single country or region.
However, there are challenges to consider when investing in international short-term rentals. These may include navigating local laws and regulations, managing tax implications, dealing with language barriers, and potentially higher property management costs due to the distance from your primary residence. It is essential to thoroughly research the specific market, understand the legal requirements, and carefully assess the potential return on investment before committing to an international short-term rental property.
Where In the World Will You Invest?
Investing in short-term rentals can be a great way to generate income and build wealth. When choosing the best cities for short-term rentals, it is important to consider factors such as local regulations, demand for rental properties, and cost of living. With careful research and planning, investors should clearly know which cities are the best fit for their investment goals.