Airbnb St. Petersburg, Florida: Market Data, Laws & Investor Guide

Are you looking for a lucrative opportunity to start your own short-term rental business? Look no further than the sunny city of St. Petersburg, Florida! With its stunning beaches, vibrant arts scene, and year-round warm weather, St. Pete is a top destination for travelers from around the world.

In recent years, the popularity of Airbnb has skyrocketed, and St. Petersburg is no exception. According to data from AirDNA, the average daily rate for an Airbnb rental in St. Pete was $153 in 2023, with an occupancy rate of 73%. This means that hosts in the area are earning an average of $3,400 per month from their short-term rentals.

But it's not just about the money – St. Petersburg offers a unique blend of culture, history, and natural beauty that makes it an irresistible destination for visitors. The city boasts world-class museums like the Salvador Dali Museum, a thriving craft beer scene, and miles of pristine beaches along the Gulf of Mexico.

Plus, with major events like the Firestone Grand Prix and the St. Pete Pride Festival drawing thousands of visitors each year, there's never a shortage of potential guests for your Airbnb. And with the city's growing reputation as a top destination for remote workers and digital nomads, the demand for short-term rentals is only expected to increase in the coming years.

So why wait? With its strong tourism industry, high occupancy rates, and endless attractions, St. Petersburg is the perfect place to launch your Airbnb business in 2024. Keep reading to learn more about how to get started and maximize your earnings in this exciting market.

St. Petersburg Short-Term Rental Market Analysis

St. Petersburg's short-term rental market has been thriving in recent years, with strong occupancy rates, competitive nightly rates, and a growing tourism industry. Here's a detailed analysis of the market:

St. Petersburg Airbnb Occupancy Rate and Nightly Rate:

As of May 2024, a typical listing in St. Petersburg is booked for 212 nights a year, with a median occupancy rate of 58% and an average daily rate of $270.

St. Petersburg Airbnb Seasonality:

1. March emerges as the peak month for revenue, aligning with the highest occupancy and daily rates.
2. The maximum daily rate of $294 is observed in March, suggesting a seasonal spike due to events or favorable weather conditions.

St. Petersburg, Florida Tourism Industry Growth:

1. In 2023, Pinellas County generated over $98 million in bed tax collections, with over 6 million nights stayed in accommodations.
2. During the first quarter of 2024, Florida had nearly 41 million visitors, a 1.2% increase from the first quarter of 2023.
3. In March 2024, Pinellas County saw $14.6 million in tourism taxes collected, up from $13.6 million the year before.

St. Petersburg, Florida Key Events and Festivals:

1. St. Pete Pride in June – the biggest Pride celebration in Florida
2. Clearwater Jazz Holiday
3. Reggae Rise Up festival
4. Tampa Bay Blues Festival
5. Firestone Grand Prix
6. Mainsail Art Festival
7. St. Petersburg Fine Art Festival

St. Petersburg, Florida Booking Durations and Mid-Term Rental Market:

According to Airbnb host forums and discussions, the typical booking duration in St. Petersburg ranges from 2-5 nights, with longer stays more common during the peak season. The mid-term rental market (monthly rentals) is also strong, particularly for snowbirds and remote workers seeking to escape colder climates during the winter months.

In conclusion, St. Petersburg's short-term rental market is thriving, with strong occupancy rates, competitive nightly rates, and a growing tourism industry. The city's numerous events and festivals, coupled with its warm weather and beautiful beaches, make it an attractive destination for travelers throughout the year.

Best Neighborhoods in St. Petersburg for an Airbnb Business

When searching for the ideal location to start an Airbnb business in St. Petersburg, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. Here are the top 5 neighborhoods in St. Petersburg for starting an Airbnb:

1. Downtown St. Petersburg

As the heart of the city, Downtown St. Petersburg offers a vibrant atmosphere with easy access to attractions like the Dali Museum, Mahaffey Theater, and Tropicana Field.

1. Average Occupancy Rate: 72%
2. Average Daily Rate: $180
3. Airbnb Seasonality: Peak season from January to April
4. Estimated Annual Revenue: $47,300

The median home value in Downtown St. Petersburg is $450,000, with condos being the most common housing type. For the best return on investment, consider investing in a 2-bedroom property.

2. Historic Kenwood

Historic Kenwood is an up-and-coming neighborhood known for its charming bungalows and proximity to the Grand Central District.

1. Average Occupancy Rate: 68%
2. Average Daily Rate: $120
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $29,800

The median home value in Historic Kenwood is $350,000, with single-family homes being the most common housing type. A 3-bedroom property offers the best return on investment in this neighborhood.

3. Gulfport

Gulfport is a quaint, artsy community just minutes from St. Petersburg's beaches and downtown area.

1. Average Occupancy Rate: 70%
2. Average Daily Rate: $130
3. Airbnb Seasonality: Peak season from December to April
4. Estimated Annual Revenue: $33,215

The median home value in Gulfport is $320,000, with a mix of single-family homes and condos. Investing in a 2-bedroom property provides the best return on investment.

4. Old Northeast

Old Northeast is a historic neighborhood known for its tree-lined streets, beautiful architecture, and proximity to the waterfront.

1. Average Occupancy Rate: 65%
2. Average Daily Rate: $150
3. Airbnb Seasonality: Peak season from November to April
4. Estimated Annual Revenue: $35,600

The median home value in Old Northeast is $600,000, with single-family homes being the most common housing type. A 3-bedroom property offers the best return on investment in this neighborhood.

5. Tyrone

Tyrone is a growing neighborhood with easy access to shopping, dining, and the beaches.

1. Average Occupancy Rate: 67%
2. Average Daily Rate: $110
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $26,900

The median home value in Tyrone is $280,000, with single-family homes being the most common housing type. Investing in a 2-bedroom property provides the best return on investment in this neighborhood.

Maximizing Your Revenue Through In-Demand Amenities and Properties in St. Petersburg

To set competitive prices for your Airbnb listing in St. Petersburg, it's essential to consider factors such as location, property type, amenities, seasonality, and market demand. Researching comparable listings in your area and analyzing their pricing strategies can provide valuable insights. Additionally, utilizing Airbnb's Smart Pricing tool or third-party dynamic pricing software can help you optimize your rates based on real-time market conditions.

According to recent data, the most popular rental type in St. Petersburg is a private room, accounting for 40% of all listings. However, entire homes and apartments also perform well, especially those with unique amenities and features.

Some of the top-performing listings in St. Petersburg share the following characteristics:

• Unique decor and interior design that showcases the property's character
• Outdoor spaces such as balconies, patios, or backyards with seating areas
• Well-equipped kitchens with modern appliances and cooking essentials
• High-quality linens, towels, and bedding for a luxurious experience
• Smart home technology, such as keyless entry and smart thermostats
• Pet-friendly accommodations to cater to a wider range of guests

To maximize revenue, consider incorporating these in-demand amenities into your listing and highlighting them in your property description and photos.

When it comes to property types, here's a breakdown of the average nightly rates and potential revenue for different bedroom counts in St. Petersburg:

Studios:

• Average Nightly Rate: $1,723
• Potential Monthly Revenue: $5,169

1 Bedroom:

• Average Nightly Rate: $2,039
• Potential Monthly Revenue: $6,117

2 Bedrooms:

• Average Nightly Rate: $2,608
• Potential Monthly Revenue: $7,824

3 Bedrooms:

• Average Nightly Rate: $3,665
• Potential Monthly Revenue: $10,995

4 Bedrooms:

• Average Nightly Rate: $4,967
• Potential Monthly Revenue: $14,901

It's important to note that these figures are averages, and actual revenue may vary depending on factors such as location, seasonality, and occupancy rates.

In terms of property prices, the average price per square foot in St. Petersburg is around $250, with newly constructed homes accounting for about 15% of the current listings. Investors should carefully consider their budget and expected return on investment when choosing a property type and location.

By staying informed about market trends, incorporating in-demand amenities, and optimizing your pricing strategy, you can maximize your revenue potential as an Airbnb host in St. Petersburg.

Understanding St. Petersburg Short-Term Rental Regulations

St. Petersburg, Florida is an attractive market for starting a short-term rental business, but it's crucial to understand the local regulations. The city has specific rules limiting the frequency a property can be rented out short-term. In most residential areas, a property can only be used as an STR (less than 30 days) a maximum of 3 times per year, unless it's in a zone that specifically allows hotels/motels or has a special exception.

To legally operate an STR in St. Petersburg, hosts must obtain a Business Tax Receipt from the city, which serves as a business license. No additional STR-specific permit is required. Hosts must also register with the Florida Department of Revenue and Pinellas County Tax Collector to collect and remit required taxes, including the 6% State Transient Rental Tax, 5% Pinellas County Tourist Development Tax, 7% State Sales Tax, and 1% Pinellas County Discretionary Sales Surtax.

STRs in St. Petersburg are capped at 2 people per bedroom, plus 2 additional people per property, up to a maximum of 10 people total. Some areas, like Coastal Islands Overlay districts, prohibit STRs entirely.

Based on discussions from STR hosts on forums, St. Petersburg actively investigates STRs that may be violating the 3-stays-per-year rule, though enforcement can be inconsistent. Many real estate professionals advise against buying an investment property in St. Petersburg solely for short-term renting, unless it's in a designated hotel/motel zone, due to the restrictive regulations.

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

Keys to Success as a St. Petersburg Airbnb Host

Starting an Airbnb business in St. Petersburg can be a rewarding venture, but it requires careful planning, attention to detail, and a commitment to providing exceptional guest experiences. In this section, we'll explore some key strategies for success as an Airbnb host in this vibrant Florida city.

Popular Amenities and Design Themes in St. Petersburg

To attract guests and stand out from the competition, consider incorporating these popular amenities and design themes into your St. Petersburg Airbnb:

• Coastal-inspired decor with bright colors and beach-themed accents
• Outdoor spaces like patios, balconies, or gardens with comfortable seating
• Well-equipped kitchens with modern appliances and cooking essentials
• High-speed Wi-Fi and smart home technology for a seamless stay
• Unique features like vintage furnishings, local artwork, or custom murals

How to Attract St. Petersburg Customers

To draw in potential guests and boost your occupancy rates, focus on these strategies:

• Craft a compelling listing title and description that highlights your property's unique features and location
• Invest in high-quality photos that showcase your space in the best possible light
• Offer competitive pricing based on market demand and seasonality
• Provide exceptional customer service and promptly respond to guest inquiries
• Leverage social media and targeted advertising to reach your ideal audience

Potential Challenges and Guidelines for St. Petersburg Airbnb Hosts

While operating an Airbnb in St. Petersburg can be lucrative, hosts should be aware of potential challenges and risks, such as:

• Strict short-term rental regulations that limit stays to 3 times per year in most residential areas
• Inconsistent enforcement of STR rules, which can create uncertainty for hosts
• High competition in popular neighborhoods, which may impact occupancy rates and pricing

To mitigate these risks and run a successful Airbnb, consider the following guidelines based on insights from experienced hosts:

• Thoroughly research and comply with all local STR regulations and tax requirements
• Focus on properties in designated hotel/motel zones or areas with more lenient STR rules
• Differentiate your listing with unique amenities, experiences, or design elements
• Build a strong reputation through consistent 5-star reviews and exceptional guest communication
• Develop a network of reliable service providers, such as cleaners and maintenance professionals
• Stay informed about market trends and adjust your strategy as needed to remain competitive

By implementing these strategies and guidelines, you can position yourself for success as an Airbnb host in St. Petersburg's dynamic short-term rental market.

Using BNBCalc to Find Profitable Properties in St. Petersburg, Florida

Investing in a short-term rental property can be a daunting task, especially for aspiring business owners. However, with the right tools and strategies, you can find profitable properties in St. Petersburg, Florida, and set yourself up for success. In this section, we'll explore how BNBCalc can help you navigate the process of starting a short-term rental business.

1. Analyze Properties Using BNBCalc

BNBCalc is a powerful tool that allows you to analyze potential short-term rental properties in St. Petersburg. By entering the property address, purchase price, and other relevant details, BNBCalc provides a comprehensive analysis of the property's potential revenue, expenses, and return on investment. This information can help you make informed decisions about which properties to pursue.

2. Benchmark Comparable Rentals

One of the key features of BNBCalc is the ability to see other nearby rentals within the area. By analyzing the performance of comparable properties, you can gain valuable insights into pricing strategies, occupancy rates, and amenities that guests are looking for. Use this information to optimize your own listing and fetch top dollar for your short-term rental.

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 revenue potential. By inputting different scenarios and analyzing the results, you can identify the sweet spot that balances your investment costs with your expected returns. This information can guide your property search and help you focus on the most profitable options.

4. Make an Offer

Once you've identified a property that meets your criteria and offers a strong return on investment, it's time to make an offer. BNBCalc has partnered with STR lenders to help you get prequalified and secure financing for your short-term rental property. Our team recommends working with Brian Bockholdt at Alliant Credit Union, who offers some of the lowest rates in the industry.

5. Use Our Tax Calculator

In addition to analyzing potential properties, BNBCalc also offers a tax calculator that can help you determine potential tax deductions from bonus depreciation. By understanding the tax implications of your short-term rental business, you can optimize your financial strategy and maximize your profits.

6. Come Up with a Buy Box

When searching for profitable short-term rental properties in St. Petersburg, it's essential to have a clear set of criteria that define your ideal investment. This "buy box" should include factors such as:

1. Location: Focus on areas with strong demand for short-term rentals, such as downtown St. Petersburg or near popular attractions.
2. Property type: Consider the most popular property types in St. Petersburg, such as condos, apartments, or single-family homes.
3. Amenities: Look for properties with in-demand amenities, such as outdoor spaces, well-equipped kitchens, and unique design features.
4. Revenue potential: Use BNBCalc to identify properties that offer a strong return on investment based on your specific financial goals.

By using BNBCalc and following these steps, aspiring business owners can navigate the process of finding and investing in profitable short-term rental properties in St. Petersburg, Florida. With the right tools, strategies, and mindset, you can build a successful and rewarding Airbnb business in this thriving market.

Ready to start your Airbnb journey in St. Petersburg? 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 St. Petersburg 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.