Columbus, Ohio: Market Data, Laws & Investor Guide

Are you looking to start a profitable short-term rental business in a thriving Midwestern city? Look no further than Columbus, Ohio. As the state capital and one of the fastest-growing cities in the United States, Columbus offers a perfect blend of affordability, strong tourism, and a favorable regulatory environment for Airbnb hosts.

In 2024, Columbus continues to attract savvy real estate investors seeking to capitalize on the city's booming short-term rental market. With a median home price of just $267,896 - 23% lower than the average city - Columbus provides an accessible entry point for aspiring Airbnb entrepreneurs.

Despite its affordability, Columbus has seen an impressive 55.4% increase in property values since 2019, the tenth-highest rate in the country. This combination of low prices and strong appreciation makes Columbus an attractive destination for investors seeking both immediate cash flow and long-term wealth creation.

Columbus also boasts a thriving tourism industry, with over 39.3 million annual visitors drawn to the city's vibrant arts scene, world-class museums, and abundant outdoor recreation opportunities. This steady stream of tourists fuels demand for short-term rentals, with the average Airbnb occupancy rate in Columbus hovering around 50%.

Investors will be pleased to know that short-term rentals are fully legal in Columbus, with the city implementing a straightforward permitting process and reasonable regulations to ensure a level playing field for hosts. Approximately 1.15% of properties in Columbus are already active on Airbnb, demonstrating the platform's popularity and profitability in the market.

With an average annual revenue of $28,700 and a daily rate of $186.60, Columbus Airbnb hosts are well-positioned to generate substantial passive income from their investments. In fact, Rabbu.com recently ranked Columbus as the 6th best city in the nation for short-term rental investments, highlighting its exceptional potential for savvy investors.

As you explore the exciting world of Airbnb investing in Columbus, Ohio, keep reading to discover insider tips, neighborhood insights, and data-driven strategies to maximize your returns in this dynamic and promising market.

Columbus Short-Term Rental Market Analysis

Columbus has seen impressive growth in its short-term rental market over the past few years. Here are some key statistics and insights:

• As of May 2024, the average Airbnb occupancy rate in Columbus is 50%.
• The average daily rate for short-term rentals is $186.60.
• Seasonality is moderate in Columbus, with a seasonality score of 88 out of 100.
• Comparing Airbnb market data from 2022 to 2024:
  - Active listings increased by 8%
  - Average monthly occupancy increased by 3%
  - Average daily rate increased by 5%
  - Average monthly revenue per listing increased by 3%

Columbus has experienced strong population growth in recent years. The metro area population increased by 1.24% from 2022 to 2023, reaching 1,708,000 residents. This makes Columbus the fastest-growing city in the U.S..

The city's tourism industry has also seen substantial growth. According to Experience Columbus, the city hosted 435 conventions, trade shows, and sporting events in 2023, up from 324 in 2022. Bed tax collections increased by 12.5% in 2023 compared to 2022.

Some key local events and festivals that boost tourism in Columbus include:

1. Sonic Temple Arts & Music Festival (May 16-19, 2024)
2. Asian Festival (May 25-26, 2024)
3. The Memorial Tournament, presented by Workday (June 3-9, 2024)
4. Columbus Arts Festival (June 7-9, 2024)
5. Jazz & Rib Fest (July 19-21, 2024)
6. Ohio State Fair (July 24 - August 4, 2024)
7. Columbus Oktoberfest (Sept. 6-8, 2024)

According to Airbnb host forums, typical booking durations in Columbus range from 2-3 nights for weekend stays to 5-7 nights for longer visits. The city also has a growing mid-term rental market, with 58.1% of listings offering stays of 30+ nights.

In summary, Columbus offers an attractive and rapidly growing short-term rental market bolstered by strong population growth, a thriving tourism industry, and a wide range of popular events throughout the year. With favorable Airbnb metrics and an emerging mid-term rental market, the city presents compelling opportunities for investors in 2024.

Best Neighborhoods in Columbus for an Airbnb Business

When searching for the ideal location to start an Airbnb in Columbus, hosts should consider factors such as proximity to popular attractions, up-and-coming areas with growing demand, and established tourist hotspots. By analyzing a combination of data-driven insights and local knowledge, we've identified the top 5 neighborhoods in Columbus for starting a successful Airbnb business.

1. German Village

German Village, a historic neighborhood known for its charming brick houses and quaint streets, is a top choice for Airbnb investors due to its proximity to downtown and popular attractions like Schiller Park and the Book Loft.

1. Average Occupancy Rate: 58%
2. Average Daily Rate: $186
3. Estimated Annual Revenue: $39,376 (4-bedroom)
4. Median Property Price (4 bedrooms): $549,900
5. Gross Rental Yield: 23.09%

2. Downtown Columbus

Downtown Columbus offers a prime location for Airbnb hosts, with easy access to the city's main business district, cultural attractions, and the vibrant Short North Arts District.

1. Average Occupancy Rate: 51%
2. Average Daily Rate: $181
3. Estimated Annual Revenue: $33,693 (2-bedroom)
4. Median Property Price (2 bedrooms): $250,000
5. Gross Rental Yield: 16.84%

3. Franklinton

Franklinton, an up-and-coming neighborhood west of downtown, is attracting Airbnb investors with its affordable housing prices and growing arts scene.

1. Average Occupancy Rate: 58%
2. Average Daily Rate: $150
3. Estimated Annual Revenue: $31,755 (3-bedroom)
4. Median Property Price (3 bedrooms): $179,900
5. Gross Rental Yield: 26.76%

4. Harrison West

Harrison West, located just north of Victorian Village, offers a quiet residential setting while still being close to popular attractions and The Ohio State University campus.

1. Average Occupancy Rate: 58%
2. Average Daily Rate: $170
3. Estimated Annual Revenue: $35,989 (4-bedroom)
4. Median Property Price (4 bedrooms): $424,000
5. Gross Rental Yield: 17.40%

5. Fifth by Northwest

Fifth by Northwest, a trendy neighborhood northwest of downtown, is known for its diverse dining scene and proximity to Grandview Heights and The Ohio State University.

1. Average Occupancy Rate: 58%
2. Average Daily Rate: $178
3. Estimated Annual Revenue: $37,682 (3-bedroom)
4. Median Property Price (3 bedrooms): $358,000
5. Gross Rental Yield: 18.12%

According to Zillow, the typical home value in Columbus is $247,042 as of June 2024. However, prices vary significantly by neighborhood and property type. In general, 3-4 bedroom properties offer the best return on investment for Airbnb hosts in Columbus.

By focusing on these top neighborhoods and considering factors like occupancy rates, daily rates, and property prices, aspiring Airbnb hosts can maximize their chances of success in the thriving Columbus short-term rental market.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Columbus

To set competitive prices for your Airbnb listing in Columbus, consider factors such as location, property type, amenities, seasonality, and market demand. Analyze comparable listings in your area to gauge the average daily rate and occupancy levels. Adjust your prices based on local events, holidays, and peak travel seasons to maximize revenue.

According to AirDNA data, the most in-demand and best-performing Airbnb listings in Columbus share several key amenities and characteristics:

1. Self check-in: 83% of top-performing listings offer self check-in, providing guests with flexibility and convenience.
2. Fully-equipped kitchen: 95% of high-revenue listings feature a well-stocked kitchen, allowing guests to prepare meals and save on dining out.
3. Dedicated workspace: With the rise of remote work, 68% of top listings now include a dedicated workspace or home office setup.
4. Outdoor space: 72% of popular listings offer a private balcony, patio, or backyard, providing guests with additional living space and a connection to the outdoors.
5. Unique decor and local flair: Successful hosts often incorporate unique design elements, artwork, or furnishings that reflect the character of Columbus, creating a memorable experience for guests.

To maximize revenue, consider investing in these amenities and highlighting them in your listing description and photos.

In terms of property types, entire homes and apartments are the most popular among Columbus Airbnb guests, accounting for 87% of all listings. However, private rooms can also be profitable for hosts looking to start with a smaller investment.

Here's a breakdown of average property prices and potential short-term rental revenue by bedroom count in Columbus:

1-Bedroom Properties:

1. Median Property Price: $150,000
2. Average Daily Rate: $99
3. Estimated Annual Revenue: $21,384

2-Bedroom Properties:

• Median Property Price: $225,000
• Average Daily Rate: $139
• Estimated Annual Revenue: $30,024

3-Bedroom Properties:

• Median Property Price: $300,000
• Average Daily Rate: $189
• Estimated Annual Revenue: $40,824

4-Bedroom Properties:

• Median Property Price: $400,000
• Average Daily Rate: $269
• Estimated Annual Revenue: $58,104

Keep in mind that these figures are averages, and actual performance may vary depending on factors such as location, amenities, and property management. By focusing on in-demand amenities, creating a unique and inviting space, and pricing competitively, you can maximize your revenue potential in the thriving Columbus short-term rental market.

Understanding Columbus Short-Term Rental Regulations

Columbus, Ohio has implemented a set of regulations for short-term rental properties listed on platforms like Airbnb and VRBO. These regulations aim to ensure the safety of guests and the community while providing a framework for hosts to operate their STR businesses legally.

To start an STR business in Columbus, hosts must obtain a valid permit for each approved dwelling. The permit application process involves providing proof of identity, residency, and property ownership. Hosts are also required to open a business account with the Columbus Division of Taxation to collect and remit the 5.1% lodging excise tax on STR income. Additionally, hosts must obtain a BCI background check and comply with all local, state, and federal laws related to STRs.

Each STR property in Columbus requires an individual permit, and hosts must display the valid permit inside the rental property. The city enforces various rules and regulations related to the construction, design, maintenance, habitability, health, and safety standards of STR properties. Hosts must ensure their listings comply with the city's building, housing, and fire prevention codes.

Columbus takes a relatively strict approach to enforcing its STR regulations, and some hosts have reported challenges in navigating the permit application process and complying with the various rules. However, the city is generally considered more Airbnb-friendly compared to some other major cities, recognizing the value of STRs while working to balance the interests of hosts, guests, and the community.

Read our full STR regulations guide for more detailed information on Columbus short-term rental regulations, including insights from local hosts and a closer look at other policies.

Keys to Success as a Columbus Airbnb Host

To attract guests and stand out in the competitive Columbus short-term rental market, it's essential to offer popular amenities and design your space with appealing themes. According to Airbnb listings and host discussions, some of the most sought-after amenities in Columbus include:

• Self check-in with a keypad or smart lock for added convenience and security
• Fully-equipped kitchen with modern appliances and ample counter space
• Dedicated workspace or home office setup to accommodate remote workers
• Private outdoor space like a balcony, patio, or backyard
• Unique decor that reflects the character of Columbus and incorporates local artwork or furnishings

When it comes to interior design, successful Columbus hosts often blend retro chic elements with modern touches, drawing inspiration from trendy spots like Soho House. Incorporating rich colors, dark wood tones, and interesting geometrics can create a fresh, inviting atmosphere that appeals to style-conscious travelers.

To attract customers in Columbus, it's crucial to establish a strong brand presence on Airbnb and other booking platforms. Craft compelling listing titles and descriptions that highlight your property's unique selling points, such as proximity to popular attractions, top-notch amenities, or stunning views. Invest in high-quality photography to showcase your space in the best possible light and make a memorable first impression on potential guests.

While Columbus presents exciting opportunities for Airbnb hosts, it's important to be aware of potential challenges and risks specific to operating in the city. On forums like Bigger Pockets and Reddit, some hosts have reported difficulties navigating the city's strict short-term rental regulations and permit application process. Failing to comply with local laws can result in hefty fines, so it's essential to thoroughly research and adhere to all requirements.

Another challenge cited by Columbus hosts is the time commitment required to run a successful Airbnb business. Responding promptly to guest inquiries, maintaining a clean and well-stocked property, and handling any issues that arise during stays can be demanding. Some hosts recommend partnering with a reliable cleaning service or property management company to help alleviate the workload.

To mitigate risks and ensure a smooth operation, experienced Columbus hosts offer the following tips:

• Install exterior security cameras, smart locks, and noise detection devices to enhance safety and security
• Develop a strong communication strategy with landlords or property management companies to address any concerns about short-term rentals
• Provide a detailed house manual with clear instructions, local recommendations, and emergency contact information
• Go above and beyond with personal touches like handwritten notes, welcome baskets, or local treats to create a memorable guest experience

By focusing on in-demand amenities, creating a unique and inviting space, and proactively addressing potential challenges, aspiring Airbnb hosts can set themselves up for success in the dynamic Columbus short-term rental market.

Using BNBCalc to Find Profitable Properties in Columbus, Ohio

Starting a successful short-term rental business in Columbus, Ohio requires careful research and analysis. BNBCalc is a powerful tool that can help aspiring Airbnb entrepreneurs identify profitable properties and make informed investment decisions. Here's a step-by-step guide on how to use BNBCalc to find the best properties in Columbus:

1. Analyze Properties Using BNBCalc

To begin your search for a profitable Airbnb property in Columbus, simply enter the address of a potential listing into BNBCalc. The tool will provide you with a comprehensive analysis, including estimated annual revenue, average daily rate, occupancy rate, and a list of comparable rentals in the area.

BNBCalc makes it easy to evaluate multiple properties quickly, allowing you to compare their potential profitability and make data-driven decisions. The user-friendly interface and detailed reports enable even novice investors to navigate the platform with ease.

2. Benchmark Comparable Rentals

One of the key features of BNBCalc is its ability to showcase other nearby rentals within the area. By analyzing these comparable listings, you can gain valuable insights into the local market, including pricing strategies, amenities, and occupancy rates.

Use this information to benchmark your property against top-performing rentals in the area. Identify what sets successful listings apart and incorporate those elements into your own Airbnb. By offering competitive rates and in-demand amenities, you can attract more guests and maximize your revenue potential.

3. Determine the Right Price and Property Size

BNBCalc can help you determine the optimal number of bedrooms, bathrooms, and purchase price to maximize your returns in Columbus. The tool provides detailed revenue estimates based on various property configurations, allowing you to find the sweet spot for your investment.

Consider factors such as the average daily rate, occupancy rate, and seasonality when deciding on the ideal property size and price point. BNBCalc's data-driven insights will guide you towards making informed decisions that align with your financial goals and the local market demand.

4. Make an Offer

Once you've identified a property that meets your investment criteria, it's time to make an offer. BNBCalc's analysis will help you determine a fair purchase price based on the projected returns and market conditions in Columbus.

To streamline the financing process, consider working with BNBCalc's partnered STR lender, Brian Bockholdt at Alliant Credit Union. By getting pre-qualified through this trusted lender, you can secure the great rates and strengthen your offer when negotiating with sellers.

5. Use the Tax Calculator

BNBCalc's built-in tax calculator is a valuable tool for estimating potential tax deductions from bonus depreciation. As a short-term rental owner in Columbus, you may be eligible for significant tax benefits that can enhance your overall returns.

The tax calculator takes into account factors such as property value, renovation costs, and depreciation schedules to provide you with an accurate estimate of your potential deductions. By leveraging these tax advantages, you can maximize your profits and reinvest in growing your Airbnb business.

6. Come Up With a Buy Box

Finally, use BNBCalc's comprehensive analysis to develop a "buy box" - a set of criteria that defines your ideal investment property in Columbus. This buy box should take into account factors such as location, property size, amenities, and projected returns.

By sticking to your buy box, you can quickly filter through potential listings and focus on properties that align with your investment strategy. This targeted approach will save you time and help you build a profitable short-term rental portfolio in Columbus.

With BNBCalc as your go-to tool, you'll be well-equipped to navigate the exciting world of Airbnb investing in Columbus, Ohio. By leveraging data-driven insights, benchmarking against top-performing rentals, and making informed decisions, you can set yourself up for success in this thriving market.

Ready to start your Airbnb journey in Columbus? Use BNBCalc to analyze potential properties and make informed investment decisions. Our powerful tool provides comprehensive data to help you maximize your profits. Check out this pre-analyzed Columbus Airbnb opportunity and see how BNBCalc can help you succeed in the short-term rental market. Visit BNBCalc.com today and take the first step towards building your Airbnb business.