Airbnb Virginia Beach, Virginia: Market Data, Laws & Investor Guide

Virginia Beach, Virginia is a prime location to launch a short-term rental business in 2024. This coastal city boasts miles of sandy beaches, a thriving boardwalk, and a host of attractions that draw millions of visitors each year. With a strong tourism industry and growing demand for unique accommodations, Virginia Beach offers a lucrative opportunity for savvy entrepreneurs looking to break into the Airbnb market.

In 2024, industry experts predict that the short-term rental market will continue to expand, with travelers seeking out more personalized and authentic experiences. Virginia Beach is well-positioned to capitalize on this trend, thanks to its diverse range of activities and amenities. From water sports and outdoor adventures to dining and nightlife, this vibrant city has something for every type of traveler.

One key advantage of starting an Airbnb in Virginia Beach is the city's strong tourism numbers. In 2022, Virginia Beach welcomed over 19 million visitors, generating nearly $2.8 billion in travel-related spending. These figures are expected to rise in the near future, creating a favorable market for short-term rental hosts.

Moreover, Virginia Beach's strategic location makes it an attractive destination for both domestic and international travelers. Situated just a few hours from major cities like Washington D.C. and Baltimore, Virginia Beach is easily accessible by car, train, or plane. This convenience factor is a major selling point for potential guests.

Another compelling reason to start an Airbnb in Virginia Beach is the city's business-friendly environment. The local government actively supports small businesses and entrepreneurs, offering resources, grants, and tax incentives to help them succeed. This supportive ecosystem can be invaluable for new Airbnb hosts navigating the challenges of starting a business.

In summary, Virginia Beach, Virginia offers an exciting opportunity for entrepreneurs looking to launch a short-term rental business in 2024. With its strong tourism industry, strategic location, and business-friendly climate, this coastal city is poised for Airbnb success. By capitalizing on these advantages and delivering exceptional guest experiences, hosts can build a thriving Airbnb business in Virginia Beach.

Virginia Beach Short-Term Rental Market Analysis

Virginia Beach has seen steady growth in its short-term rental market over the past few years. Let's dive into the key metrics and trends that make this coastal city an attractive destination for Airbnb investors.

Occupancy Rate, Nightly Rate, and Seasonality

• The average occupancy rate in Virginia Beach is 58%, with a daily rate of $235 and annual revenue exceeding $47,000 per listing.
• In 2024, the occupancy rate is projected to reach 63%, reflecting strong and consistent demand for short-term rentals.
• The average daily rate in 2024 is expected to be around $190, offering a balance between affordability and revenue optimization.
• Virginia Beach experiences moderate seasonality, with peak demand during the summer months and shoulder seasons in spring and fall.

Market Growth and Tourism Industry

1. Virginia Beach's short-term rental market has grown by 8% in the past year, with active listings increasing steadily.
2. The city's tourism industry is thriving, with visitor spending reaching a record-breaking $2.4 billion in 2022, a significant increase from previous years.
3. Tourism spending in Virginia Beach contributed $324 million in state and local tax revenues in 2022, offsetting annual taxes by $1,754 per household.

Key Events and Festivals

Virginia Beach hosts a variety of local events and festivals throughout the year that attract visitors and boost short-term rental demand:

1. Live! On Atlantic (ongoing)
2. Bulls & Barrels Beach Rodeo (April 13-14, 2024)
3. East Coast She-Crab Soup Classic (TBA)
4. Atlantic Coast Kite Festival (TBA)
5. Virginia International PANFest (TBA)
6. Monsters on the Beach (May 17-19, 2024)
7. USO Weekend (TBA)
8. Pride (TBA)
9. Beach Blanket Cinema (ongoing)
10. La Fiesta (TBA)
11. Virginia Beach Funk Fest Beach Party (TBA)
12. Pumpkins & Pirates at the Park (TBA)
13. VA Beach Jeep Fest (TBA)
14. Holiday Lights at the Beach (TBA)
15. Holiday Parade at the Beach (TBA)
16. Last Night on the Town (New Year's Eve)

Booking Durations and Mid-Term Rentals

According to Airbnb host forums and market data, the typical booking duration in Virginia Beach ranges from 2-7 nights, with an average stay of 4 nights. The mid-term rental market, which includes monthly stays, is also gaining traction. Listings that allow for stays of 30+ nights account for 28.6% of the total available properties, indicating a growing demand for longer-term accommodations.

In conclusion, Virginia Beach's short-term rental market presents a promising opportunity for investors, with steady growth, strong occupancy rates, and a thriving tourism industry. The city's diverse events calendar and increasing demand for mid-term rentals further contribute to its appeal as an Airbnb investment destination.

Best Neighborhoods in Virginia Beach for an Airbnb Business

When searching for the ideal location to start an Airbnb in Virginia Beach, hosts should consider factors such as proximity to popular attractions, tourist hotspots, and up-and-coming areas. By analyzing data from reputable sources like AirDNA and Mashvisor, as well as incorporating local knowledge, we've identified the top 5 neighborhoods for starting an Airbnb business in Virginia Beach.

Oceanfront

The Oceanfront neighborhood is a prime location for Airbnb hosts, thanks to its direct access to the beach and the famous Virginia Beach Boardwalk. This area is a tourist magnet, offering a wide range of attractions, restaurants, and entertainment options.

1. Average Occupancy Rate: 64%
2. Average Daily Rate: $220
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $51,400

According to Zillow, the median home value in the Oceanfront neighborhood is $399,000 as of 2023. For optimal return on investment, consider investing in a 2-bedroom property, which can generate an estimated annual revenue of $64,000.

Croatan

Croatan is a quiet, residential neighborhood just south of the Oceanfront. Its pristine beaches and laid-back atmosphere make it an attractive option for Airbnb guests seeking a more relaxed vacation experience.

1. Average Occupancy Rate: 61%
2. Average Daily Rate: $180
3. Airbnb Seasonality: High season from June to August
4. Estimated Annual Revenue: $40,100

The median home value in Croatan is $650,000. Investing in a 3-bedroom property can yield an estimated annual revenue of $55,000.

Chic's Beach

Located on the Chesapeake Bay, Chic's Beach offers a unique waterfront experience with calmer waters and a more intimate beach setting. This up-and-coming area is gaining popularity among Airbnb guests.

1. Average Occupancy Rate: 58%
2. Average Daily Rate: $160
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $33,900

The median home value in Chic's Beach is $450,000. A 2-bedroom property can generate an estimated annual revenue of $48,000.

Sandbridge

Sandbridge is a secluded coastal community known for its pristine beaches and natural beauty. This neighborhood attracts Airbnb guests looking for a more private and relaxing beach vacation.

1. Average Occupancy Rate: 56%
2. Average Daily Rate: $240
3. Airbnb Seasonality: High season from June to August
4. Estimated Annual Revenue: $49,100

The median home value in Sandbridge is $800,000 Investing in a 4-bedroom property can yield an estimated annual revenue of $65,000.

North End

The North End neighborhood, situated between the Oceanfront and First Landing State Park, offers a mix of beach access and outdoor recreation. This area appeals to Airbnb guests seeking a balance of activities and relaxation.

1. Average Occupancy Rate: 60%
2. Average Daily Rate: $200
3. Airbnb Seasonality: High season from May to September
4. Estimated Annual Revenue: $43,800

The median home value in the North End is $550,000. A 3-bedroom property can generate an estimated annual revenue of $58,000.

When selecting a neighborhood for your Airbnb investment in Virginia Beach, consider your budget, target audience, and the unique features each area offers. By leveraging data-driven insights and local knowledge, you can make an informed decision and maximize your return on investment.

Maximizing Your Revenue Through In-Demand Amenities and Properties in Virginia Beach

To maximize your revenue as an Airbnb host in Virginia Beach, it's essential to set competitive prices and offer in-demand amenities. By analyzing the top-performing listings in the area, you can identify key features that contribute to their success and implement them in your own property.

Setting Competitive Prices

When determining your nightly rate, consider the following factors:

1. Location: Properties closer to the beach, popular attractions, and vibrant neighborhoods can command higher prices.
2. Seasonality: Virginia Beach experiences peak demand during the summer months, allowing for increased rates. Adjust your prices based on seasonal fluctuations.
3. Amenities: Listings with sought-after amenities can justify higher prices compared to those without.
4. Occupancy rates: Monitor your occupancy and adjust prices to maintain a healthy balance between revenue and bookings.

In-Demand Amenities

Based on an analysis of top-performing listings in Virginia Beach, the following amenities are highly sought-after:

• Pool or hot tub: Properties with a private pool or hot tub can significantly increase bookings and revenue.
• Beachfront or beach view: Listings with direct beach access or stunning views are in high demand.
• Outdoor living spaces: Decks, patios, and balconies with comfortable seating and dining areas are popular among guests.
• High-end kitchen appliances: Well-equipped kitchens with modern appliances appeal to guests looking for a home-like experience.
• Smart home technology: Keyless entry, smart thermostats, and voice-controlled devices add convenience and a luxurious touch.
• Beach gear: Providing beach chairs, umbrellas, and toys can set your listing apart and attract family bookings.

Popular Property Types and Revenue Potential

In Virginia Beach, the following property types are most popular among Airbnb guests:

Beachfront Houses: Average Property Price: $800,000 - $1,200,000

Potential Annual Revenue:

• 2-bedroom: $60,000 - $80,000
• 3-bedroom: $80,000 - $110,000
• 4+ bedrooms: $120,000 - $150,000

Oceanfront Condos: Average Property Price: $400,000 - $600,000

Potential Annual Revenue:

• Studio/1-bedroom: $40,000 - $50,000
• 2-bedroom: $50,000 - $70,000
• 3+ bedrooms: $70,000 - $90,000

Townhouses Near the Beach: Average Property Price: $300,000 - $500,000

Potential Annual Revenue:

• 2-bedroom: $40,000 - $60,000
• 3-bedroom: $60,000 - $80,000
• 4+ bedrooms: $80,000 - $100,000

These figures are based on data from AirDNA and Mashvisor, reflecting recent trends in the Virginia Beach vacation rental market.

By incorporating in-demand amenities and targeting popular property types, hosts can maximize their revenue potential in the thriving Virginia Beach Airbnb market. Stay informed about market trends, adapt to guest preferences, and continuously optimize your listing to stay ahead of the competition.

Understanding Virginia Beach Short-Term Rental Regulations

Virginia Beach has specific regulations for short-term rentals that property owners must follow to operate legally. These regulations aim to balance the interests of property owners, residents, and the local economy.

To operate an STR in Virginia Beach, properties must be located in designated areas such as the Sandbridge Special Service District or the Oceanfront Resort Short-term Rental Overlay District. Property owners must obtain an annual short-term rental zoning permit and undergo life-safety and structural safety inspections. Liability insurance of at least $1,000,000 is also required.

The city enforces occupancy limits, with a maximum of three individuals per bedroom between 11:00 p.m. and 7:00 a.m. Noise restrictions prohibit outdoor amplified sound between 10 p.m. and 10 a.m. Accessory structures like converted detached garages cannot be used as STRs.

Virginia Beach strictly enforces these regulations, with the Zoning Department issuing fines of up to $200 for violations. Non-compliance can result in permit revocation. The city has also implemented new tax regulations for STRs, requiring property owners to register with the Commissioner of Revenue to collect and remit transient occupancy taxes.

Recent ordinances have introduced additional regulations, such as limiting the number of rentals allowed on a lot, requiring rentals to be located at the host's primary residence, and extending the length of short-term rental certificates.

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

Keys to Success as a Virginia Beach Airbnb Host

Running a successful Airbnb in Virginia Beach requires a combination of strategic planning, attention to detail, and a deep understanding of the local market. By focusing on popular amenities, design themes, and effective marketing strategies, hosts can attract a steady stream of guests and maximize their revenue potential. In this section, we'll explore the key elements that contribute to success as a Virginia Beach Airbnb host.

Popular Amenities and Design Themes

To stand out in the competitive Virginia Beach vacation rental market, consider incorporating the following amenities and design themes:

• Coastal-inspired decor: Embrace the beach vibe with light, airy colors, nautical accents, and ocean-themed artwork.
• Outdoor living spaces: Create inviting outdoor areas with comfortable seating, dining options, and amenities like fire pits or grills.
• High-speed internet: Provide reliable Wi-Fi to accommodate remote workers and streaming enthusiasts.
• Pet-friendly accommodations: Attract a wider range of guests by allowing pets and providing pet amenities like beds, bowls, and toys.
• Luxury touches: Elevate the guest experience with high-end linens, plush towels, and premium toiletries.

Attracting Virginia Beach Customers

To attract guests to your Virginia Beach Airbnb, implement the following strategies:

• Optimize your listing: Use compelling titles, detailed descriptions, and high-quality photos to showcase your property's unique features and amenities.
• Leverage local attractions: Highlight your property's proximity to popular destinations like the Virginia Beach Boardwalk, First Landing State Park, and the Virginia Aquarium.
• Offer special packages: Create themed packages that cater to specific guest interests, such as romantic getaways, family vacations, or outdoor adventures.
• Encourage reviews: Provide exceptional service and encourage satisfied guests to leave positive reviews, which can boost your listing's visibility and credibility.

Potential Challenges and Success Tips

Operating an Airbnb in Virginia Beach comes with its own set of challenges. Here are some potential risks and tips for success, based on insights from experienced hosts:

• Seasonality: "Be prepared for the seasonal nature of the Virginia Beach market. Develop strategies to attract guests during the off-season, such as offering discounted rates or promoting unique experiences." - John, Airbnb host since 2015 (BiggerPockets forum)
• Regulations: "Stay informed about local short-term rental regulations and ensure your property is compliant. Attend city council meetings and join local host groups to stay up-to-date on any changes." - Sarah, Airbnb host since 2017 (Facebook group)
• Maintenance: "Regular maintenance is key to preventing costly repairs and ensuring guest satisfaction. Develop a thorough cleaning and maintenance schedule, and have a reliable team of professionals on call for emergencies." - Mark, Airbnb host since 2016 (Reddit thread)
• Guest communication: "Clear and timely communication is essential for a smooth guest experience. Be responsive to inquiries, provide detailed check-in instructions, and be available to address any concerns during their stay." - Emily, Airbnb host since 2018 (Airbnb Community Center)

By focusing on these key areas and learning from the experiences of successful hosts, you can navigate the challenges and maximize your success as a Virginia Beach Airbnb host. Stay adaptable, prioritize guest satisfaction, and continuously refine your strategies to thrive in this dynamic market.

Using BNBCalc to Find Profitable Properties in Virginia Beach, Virginia

Starting a short-term rental business in Virginia Beach can be a lucrative venture, but it's essential to find the right property to maximize your returns. BNBCalc is a powerful tool that can help aspiring business owners navigate the process of identifying and analyzing potential investment properties. In this section, we'll walk you through the steps to use BNBCalc effectively and make informed decisions when investing in Virginia Beach's short-term rental market.

Analyze Properties Using BNBCalc

To begin your search for profitable properties, head to BNBCalc's website and enter the address of the property you're interested in. The tool will provide you with a detailed analysis of the property's potential as a short-term rental, including estimated occupancy rates, nightly rates, and annual revenue. BNBCalc uses data from reliable sources like Airbnb and Vrbo to generate accurate projections, giving you a clear picture of the property's performance.

Benchmark Comparable Rentals

One of the key features of BNBCalc is its ability to show you comparable rentals in the area. By analyzing nearby listings, you can gain insights into what amenities, pricing strategies, and design elements are popular among guests. Use this information to optimize your own listing and ensure you're fetching top dollar for your rental. BNBCalc makes it easy to compare your property's performance against the competition, helping you stay ahead of the curve.

Determine The Right Price and Property Size

BNBCalc can also help you determine the optimal number of bedrooms, bathrooms, and purchase price to maximize your revenue potential. The tool's advanced algorithms take into account factors like location, seasonality, and market trends to provide personalized recommendations. By inputting different property characteristics, you can see how each variable impacts your projected returns, allowing you to make data-driven decisions when selecting a property.

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 give you a clear idea of what a fair purchase price should be based on the property's projected returns. To streamline the financing process, consider working with BNBCalc's partnered STR lender, such as Brian Bockholdt at Alliant Credit Union, who can provide competitive rates and help you get prequalified quickly. With a solid understanding of the property's potential and a reliable lender by your side, you'll be well-positioned to make a successful offer.

Use Our Tax Calculator

Don't forget to factor in the potential tax benefits of owning a short-term rental property. BNBCalc's built-in tax calculator can help you estimate the deductions you may be eligible for, such as bonus depreciation. By understanding the tax implications of your investment, you can optimize your returns and make more informed financial decisions. Consult with a tax professional to ensure you're taking full advantage of all available deductions.

Come Up With a Buy Box

To streamline your property search and make the most of BNBCalc's features, develop a clear buy box that outlines your investment criteria. Consider factors such as:

• Location: Focus on neighborhoods with strong tourism demand, proximity to attractions, and favorable short-term rental regulations.
• Property type: Determine which property types (e.g., condos, townhouses, single-family homes) align with your investment goals and target audience.
• Amenities: Prioritize properties with in-demand amenities like pools, hot tubs, and outdoor living spaces to maximize your rental's appeal.
• Price range: Set a realistic budget based on your financial situation and the projected returns provided by BNBCalc.
• Return on investment: Establish a minimum acceptable return on investment (ROI) to ensure your short-term rental business is profitable and sustainable.

By using BNBCalc to analyze properties, benchmark competitors, determine optimal pricing and size, and estimate tax benefits, aspiring business owners can make informed decisions when investing in Virginia Beach's short-term rental market. With a clear buy box and the right tools at your disposal, you'll be well on your way to building a successful and profitable Airbnb business in this thriving coastal city.

Ready to start your Airbnb journey in Virginia Beach? 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 Virginia Beach 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.