Airbnb Toledo, Ohio: Market Data, Laws & Investor Guide

Toledo, Ohio is quickly emerging as a premier location for savvy entrepreneurs looking to start a lucrative Airbnb business in 2024. This charming Midwestern city offers a perfect storm of affordability, growing tourism appeal, and untapped potential in the short-term rental market.

Located on the western edge of Lake Erie, Toledo boasts a rich history, vibrant arts scene, and plenty of attractions to draw in visitors from around the country. In 2019, Toledo welcomed 7.9 million visitors who spent over $1.1 billion, a clear indicator of the city's tourism appeal. As travel rebounds in 2024, this trend is expected to continue its upward trajectory.

What sets Toledo apart is its incredibly affordable real estate market compared to other popular Airbnb destinations. The median home price in Toledo is just $84,700, nearly 70% less than the national median of $284,600. This low cost of entry makes it easier than ever to acquire rental properties and start generating passive income.

Moreover, Toledo's short-term rental market is still in its early stages, presenting a golden opportunity for first-movers. According to AirDNA, the average daily rate for an Airbnb in Toledo is $124, with an occupancy rate of 64%. As more travelers discover the city's charms, these figures are poised to rise, making now the ideal time to establish your presence.

With its winning combination of affordability, growing tourism appeal, and untapped potential, Toledo is undoubtedly one of the smartest places to start an Airbnb business in 2024. In the following sections, we'll dive into the specifics of what makes this hidden gem such an attractive destination for short-term rental entrepreneurs.

Toledo Short-Term Rental Market Analysis

Toledo's short-term rental market has shown promising growth in recent years, driven by the city's affordability, revitalization efforts, and growing tourism appeal. Let's dive into the key metrics and trends that make Toledo an attractive destination for Airbnb investors.

Toledo Airbnb Occupancy Rate

• In 2023, Toledo's average Airbnb occupancy rate was 65.6% for entire homes, according to Awning.
• Toledo's average occupancy rate in 2024 is 58%, a 3% increase from the previous year.

Toledo Airbnb Nightly Rate

The average daily rate for an Airbnb in Toledo is $124, with an occupancy rate of 64% in 2024

Toledo Airbnb Seasonality

Toledo experiences peak Airbnb demand during the summer months, particularly from June to August, driven by warm weather, outdoor festivals, and events like the Toledo Jeep Fest. The city also sees high demand in the fall due to events like the Apple Butter Festival and Halloween activities. While winter months experience a decrease in tourism, events such as the Lights Before Christmas at the Toledo Zoo still attract visitors. Overall, Toledo's Airbnb demand remains relatively stable throughout the year, with a mix of leisure travelers, families, and business visitors booking short-term rentals.

Toledo, Ohio Short-Term Rental Growth Rate

1. Toledo's metro area population in 2024 is 513,000, a 0.39% increase from 2023.
2. In 2019, Toledo welcomed 7.9 million visitors who spent over $1.1 billion, indicating the city's growing tourism appeal.

Toledo, Ohio Key Local Events and Festivals

1. Toledo Jeep Fest (August)
2. National Tractor Pulling Championships (August)
3. German-American Festival (August)
4. Black Swamp Arts Festival (September)
5. Apple Butter Festival (October)
6. Lights Before Christmas at the Toledo Zoo (November-December)

Toledo Mid-Term Rental Market

Toledo's mid-term rental market, catering to stays of 30 days or more, is showing promise. According to AirDNA, 48.9% of listings in Toledo have a minimum stay of 30+ nights. The city's affordability, coupled with its growing healthcare and education sectors, makes it an attractive option for traveling professionals, such as medical staff and professors, seeking longer-term accommodations. Airbnb host forums and rental threads also highlight the potential for mid-term rentals in Toledo, particularly in neighborhoods close to major hospitals and universities.

In conclusion, Toledo's short-term rental market presents a compelling opportunity for investors, thanks to its affordability, growing tourism appeal, and untapped potential. With stable occupancy rates, increasing nightly rates, and a diverse mix of events driving year-round demand, Toledo is poised for continued growth in the Airbnb sector.

Best Neighborhoods in Toledo for an Airbnb Business

When searching for the ideal location to start an Airbnb in Toledo, hosts should consider factors such as proximity to popular attractions, up-and-coming areas, and tourist hotspots. By analyzing data from reputable sources like AirDNA, Mashvisor, and Zillow, we've identified the top five neighborhoods that offer the best potential for a successful Airbnb business.

1. Downtown Toledo

Downtown Toledo is a prime location for Airbnb hosts due to its proximity to popular attractions like the Huntington Center, Fifth Third Field, and the Toledo Museum of Art. This vibrant neighborhood offers a mix of historic architecture and modern amenities, making it a popular choice for tourists and business travelers alike.

1. Average Occupancy Rate: 67%
2. Average Daily Rate: $129
3. Airbnb Seasonality: High demand from May to September
4. Estimated Annual Revenue: $31,600

The median home price in Downtown Toledo is $145,000 with one-bedroom apartments providing the best return on investment due to their affordability and high demand from solo travelers and couples.

2. Old West End

The Old West End is a historic neighborhood known for its stunning Victorian architecture and tree-lined streets. This area is popular among tourists seeking a unique and charming experience, with easy access to attractions like the Toledo Zoo and the National Museum of the Great Lakes.

1. Average Occupancy Rate: 64%
2. Average Daily Rate: $115
3. Airbnb Seasonality: Consistent demand throughout the year
4. Estimated Annual Revenue: $24,000

Single-family homes in the Old West End have a median price of $180,000 with two-bedroom properties offering the best balance between investment cost and rental income potential.

3. Warehouse District

The Warehouse District is an up-and-coming neighborhood that has undergone significant revitalization in recent years. With its trendy restaurants, art galleries, and proximity to the Maumee River, this area is increasingly popular among younger travelers and locals alike.

1. Average Occupancy Rate: 62%
2. Average Daily Rate: $105
3. Airbnb Seasonality: High demand during summer months
4. Estimated Annual Revenue: $22,000

Loft-style apartments and condos in the Warehouse District have a median price of $220,000 with one-bedroom units providing the best return on investment due to their popularity among solo travelers and young couples.

4. Ottawa Hills

Ottawa Hills is an affluent suburb located just west of Toledo, known for its excellent schools, safe neighborhoods, and beautiful parks. This area is popular among families and business travelers seeking a quiet and comfortable stay.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $150
3. Airbnb Seasonality: High demand during summer and holiday seasons
4. Estimated Annual Revenue: $27,000

Single-family homes in Ottawa Hills have a median price of $350,000, with three-bedroom properties offering the best return on investment for hosts targeting families and larger groups.

5. Point Place

Point Place is a waterfront neighborhood located along the shores of Lake Erie, offering stunning views and easy access to outdoor recreational activities like fishing, boating, and beach-going. This area is popular among tourists seeking a relaxing and scenic getaway.

1. Average Occupancy Rate: 58%
2. Average Daily Rate: $120
3. Airbnb Seasonality: High demand from June to August
4. Estimated Annual Revenue: $20,000

Waterfront properties in Point Place have a median price of $250,000, with two-bedroom homes providing the best balance between investment cost and rental income potential for hosts targeting couples and small families.

By carefully considering these top neighborhoods and their unique characteristics, hosts can make informed decisions when starting an Airbnb business in Toledo. Utilizing data-driven insights and local knowledge will help ensure a successful and profitable venture in this growing market.

Best Toledo Investment Property Types and Maximizing Your STR Revenue

When investing in a short-term rental property in Toledo, it's crucial to consider the type of property that will generate the highest returns and attract the most guests. By analyzing data from the last few years and identifying the best-performing listings, hosts can make informed decisions to maximize their revenue.

Best Real Estate Property Investment in Toledo

Based on recent trends and data from the last few years, the following property types are most popular for short-term rental use in Toledo:

Single-Family Homes: Average property price: $150,000 (Zillow, 2024)

Potential STR revenue:

• 2-bedroom: $25,000 annually (AirDNA, 2024)
• 3-bedroom: $32,000 annually (AirDNA, 2024)
• 4-bedroom: $38,000 annually (AirDNA, 2024)

Apartments: Average property price: $120,000 (Zillow, 2024)

Potential STR revenue:

• Studio: $15,000 annually (AirDNA, 2024)
• 1-bedroom: $20,000 annually (AirDNA, 2024)
• 2-bedroom: $28,000 annually (AirDNA, 2024)

Condos: Average property price: $180,000 (Zillow, 2024)

Potential STR revenue:

• 1-bedroom: $22,000 annually (AirDNA, 2024)
• 2-bedroom: $30,000 annually (AirDNA, 2024)
• 3-bedroom: $35,000 annually (AirDNA, 2024)

Townhouses: Average property price: $200,000 (Zillow, 2024)

Potential STR revenue:

• 2-bedroom: $28,000 annually (AirDNA, 2024)
• 3-bedroom: $34,000 annually (AirDNA, 2024)
• 4-bedroom: $40,000 annually (AirDNA, 2024)

Best Airbnb Amenities in Toledo, Ohio

By analyzing the most in-demand and best-performing rental listings on Airbnb and other short-term rental platforms in Toledo, we've identified the following amenities and recommendations that help hosts maximize their revenue:

• Self check-in: Listings with keyless entry or lockboxes for self check-in have higher occupancy rates and guest satisfaction.
• Unique decor and local touches: Listings that incorporate unique decor elements and local artwork or products stand out and receive more positive reviews.
• Fully-equipped kitchen: Guests appreciate listings with well-stocked kitchens, including cooking essentials, appliances, and dining ware.
• Outdoor spaces: Properties with attractive outdoor areas, such as patios, decks, or balconies, are highly sought-after, especially during the warmer months.
• Fast and reliable Wi-Fi: With the rise of remote work and online learning, high-speed internet is a must-have amenity for many guests.
• Flexible cancellation policies: Listings with flexible or moderate cancellation policies tend to attract more bookings, as guests value the ability to change their plans if needed.

By investing in the right property type and incorporating these in-demand amenities, hosts can maximize their short-term rental revenue in Toledo's growing market.

Understanding Toledo Short-Term Rental Regulations

Toledo, Ohio, has seen a rise in short-term rentals through booking platforms like Airbnb and VRBO. To ensure the safety of occupants and minimize neighborhood impacts, the city is proposing new regulations for STR operators.

Under the proposed legislation, hosts would be required to obtain an annual permit for each STR unit they operate, valid for one year from the issue date. The permit application process involves providing proof of general liability insurance with a minimum coverage of $1 million and paying a $50 permit fee per property. Hosts can apply for the permit online or in person at the city's zoning and planning department.

Toledo's short-term rental regulations are governed by the city's zoning code, planning code, and ordinances. Hosts must comply with these regulations, which may include requirements related to safety, noise, and parking. Failure to comply can result in fines, penalties, or permit revocation. Hosts may also be subject to additional regulations imposed by their homeowners association or condominium association.

While the impact of these regulations on STR owners remains to be seen, Toledo is still considered a viable investment destination for both traditional and short-term rentals. The city's focus is on ensuring safety and accountability, aiming to create a positive experience for hosts and guests alike.

To start a short-term rental business in Toledo, hosts should familiarize themselves with the city's regulations, obtain necessary permits and licenses, ensure compliance with safety standards, provide contact details of a local representative for property management, consider profitability based on market data, market their rental effectively, maintain a clean and safe property, and respond promptly to guest inquiries and concerns.

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

Keys to Success as a Toledo Airbnb Host

Starting an Airbnb business in Toledo 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 the key elements that contribute to the success of top-performing Airbnb listings in Toledo, including popular design themes, effective marketing strategies, and guidelines for overcoming potential challenges.

Popular Design Themes in Toledo

By analyzing the most in-demand and best-performing rental listings on Airbnb and other short-term rental platforms in Toledo, we've identified the following common design themes and layouts that contribute to their success:

• Rustic-chic: Incorporating elements of Toledo's industrial heritage, such as exposed brick walls, reclaimed wood, and vintage factory-inspired decor, creates a unique and inviting atmosphere.
• Mid-century modern: Listings featuring clean lines, functional furniture, and retro-inspired accents appeal to design-savvy travelers seeking a stylish and comfortable stay.
• Cozy and inviting: Creating a warm and welcoming ambiance with plush textiles, soft lighting, and comfortable seating areas encourages guests to relax and feel at home.
• Locally-inspired: Integrating artwork, decor, and products from local artists and businesses adds a distinctive Toledo touch and helps guests connect with the city's culture.

To implement these design themes successfully, hosts should focus on creating cohesive, well-curated spaces that balance style and functionality. Investing in high-quality furniture, linens, and decor can help elevate the overall guest experience and justify higher nightly rates.

How to Attract More Toledo Customers

To effectively market your Airbnb listing and increase bookings in Toledo, consider the following tips and strategies:

• Highlight Toledo's unique attractions: Showcase the city's top attractions, such as the Toledo Museum of Art, the National Museum of the Great Lakes, and the Toledo Zoo, in your listing description and photos to appeal to potential guests.
• Optimize your listing title and description: Use keywords relevant to Toledo and your property's unique features to improve your listing's visibility in search results.
• Provide local recommendations: Share your favorite local restaurants, shops, and activities in your listing description or a welcome book to help guests make the most of their stay.
• Offer special packages or discounts: Attract longer stays or fill gaps in your calendar by offering special promotions, such as discounted weekly or monthly rates, or themed packages that include tickets to local attractions.
• Engage with the local community: Participate in local events, partner with nearby businesses, and join Toledo-based Airbnb host groups to expand your network and gain valuable insights.

Potential Challenges and Guidelines to Success for Toledo Airbnb Hosts

While operating an Airbnb in Toledo can be a successful venture, hosts should be aware of potential challenges and follow guidelines to ensure a smooth and profitable operation:

• Regulatory compliance: Stay up-to-date with Toledo's evolving short-term rental regulations, obtain necessary permits and licenses, and ensure your property meets all safety and zoning requirements.
• Seasonality: Toledo experiences fluctuations in demand throughout the year, with peak seasons during summer and holiday periods. Hosts should adjust their pricing and marketing strategies accordingly to maintain consistent occupancy rates.
• Competition: As Toledo's Airbnb market grows, hosts must differentiate their listings through unique amenities, exceptional service, and competitive pricing to stand out from the competition.
• Maintenance and upkeep: Regularly maintain and update your property to ensure a high-quality guest experience and prevent negative reviews. Promptly address any issues or repairs as they arise.
• Guest communication: Provide clear and timely communication with guests before, during, and after their stay to build trust, address concerns, and encourage positive reviews.

By understanding these challenges and adhering to proven guidelines, Toledo Airbnb hosts can create successful and sustainable short-term rental businesses that capitalize on the city's growing tourism industry and provide memorable experiences for their guests.

Using BNBCalc to Find Profitable Properties in Toledo, Ohio

Investing in a short-term rental property in Toledo can be a lucrative venture, but it's essential to conduct thorough research and analysis to ensure profitability. BNBCalc is a powerful tool that can help aspiring business owners navigate the process of finding and analyzing potential investment properties in Toledo. In this section, we'll walk you through the steps to use BNBCalc effectively and make informed decisions when starting your short-term rental business.

Analyze Properties Using BNBCalc

To begin your search for profitable properties in Toledo, input the address or neighborhood of interest into BNBCalc. The tool will provide you with a comprehensive analysis of the property's potential as a short-term rental, including estimated occupancy rates, nightly rates, and annual revenue. BNBCalc uses historical data and machine learning algorithms to generate accurate projections, helping you make data-driven investment decisions.

Benchmark Comparable Rentals

BNBCalc allows you to compare the performance of nearby rentals within the area, giving you valuable insights into the local market. By analyzing the occupancy rates, nightly prices, and amenities of comparable listings, you can identify opportunities to differentiate your property and maximize your revenue. Use this information to refine your investment strategy and ensure your rental stands out from the competition.

Determine The Right Price and Property Size

With BNBCalc's advanced analytics, you can determine the optimal number of bedrooms, bathrooms, and purchase price to maximize your return on investment. The tool provides a detailed breakdown of projected expenses and income, allowing you to assess the profitability of different property configurations. By understanding the sweet spot for price and size in the Toledo market, you can make informed decisions when searching for your ideal investment property.

Make an Offer

Once you've identified a promising property based on BNBCalc's returns analysis, it's time to make an offer. To streamline the process, consider getting prequalified with BNBCalc's partnered short-term rental lender. Our team recommends Brian Bockholdt at Alliant Credit Union for the lowest rates and a seamless lending experience. With prequalification in hand, you can move quickly and confidently when making an offer on your chosen property.

Use Our Tax Calculator

In addition to analyzing potential returns, BNBCalc offers a built-in tax calculator to help you determine potential tax deductions from bonus depreciation. By inputting your property's details and projected income, the tool can estimate your eligible deductions, helping you optimize your tax strategy and maximize your overall profitability. Understanding the tax implications of your short-term rental business is crucial for long-term success.

Come Up With a Buy Box

When creating a buy box for your Toledo short-term rental investment, focus on properties that align with the following qualities:

• Location: Prioritize properties in popular neighborhoods with easy access to top attractions, dining, and entertainment options.
• Property type: Consider investing in single-family homes, apartments, or condos that cater to the preferences of Toledo's target demographic.
• Amenities: Look for properties with in-demand amenities, such as outdoor spaces, fully-equipped kitchens, and unique design elements that set them apart from the competition.
• Price range: Use BNBCalc's analytics to identify properties within a price range that offers strong returns and aligns with your investment budget.
• Occupancy potential: Focus on properties with high occupancy potential, taking into account factors like seasonality, local events, and market trends.

By incorporating these qualities into your buy box, you can narrow down your search to properties that offer the greatest potential for profitability and long-term success in Toledo's growing short-term rental market.

Ready to start your Airbnb journey in Toledo? 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 Toledo 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.