Investing in Airbnb Columbus Ohio in 2022 is a lucrative prospect for real estate investors willing to pursue the short-term rental strategy.
Columbus City is the capital city of the state of Ohio. It was founded in 1812 and was named after Christopher Columbus, the world-renowned explorer. Today, it is home to about 900,000 residents, making it the most populous city in Ohio.
With its kind of popularity, it’s only natural that the state attracts real estate investors from all over the country. Similar to investing in every other location, Columbus OH also comes with its advantages and disadvantages.
Today, we seek to look at some 2022 Columbus Ohio real estate market trends and whether investing in the Airbnb business in the location will be profitable.
The State of Columbus Ohio Housing Market
There are plenty of positive things to say about the Columbus Ohio Airbnb investing scene. Fortunately, the market is recovering from the effects of the pandemic. Here are some factors you should be aware of regarding investing in Airbnb Columbus Ohio:
Impressive Tourism Levels
It’s important for real estate investors who seek to start or diversify their Airbnb portfolio to invest in a location that will assure them of consistent guest arrivals throughout the year. One way to do it is by investing in tourism hotspots. Fortunately, Columbus ticks the box, and there are statistics to back it.
Over 39.3 million people visit Columbus annually. Since things are slowly getting back to pre-pandemic levels, we can only expect the numbers to grow even more in 2022. Tourists flock to the city to enjoy the art, culture, museums, outdoor activities, and many more (more on that later).
With tourism and hospitality as some of the leading industries in Columbus, it’s without a doubt that starting an Airbnb business in the city’s housing market in 2022 will thrive. The demand for Airbnb is high, meaning that you’ll experience a good occupancy rate throughout the year.
Short-Term Rentals Are Legal
Whenever you’re thinking of buying a property for a short-term rental business, it’s always important to know the rules and regulations surrounding Airbnbs in that location. Some cities, such as Los Angeles and Las Vegas, ban running non-owner-occupied rentals, while others impose strict measures to regulate the sector.
The good news is that non-owner-occupied rentals are legal in Columbus Ohio. Still, there are regulations in place that you must adhere to. Let’s take a quick look at some of the important laws that you must know about Airbnb Columbus Ohio:
- Hosts must apply for a license in person at the Department of Public Safety License Section.
- Hosts must submit a signed vacation rental application. The application is charged at a fee of $20.
- The permit to run a short-term rental at a primary residence is $75 annually, while that for a non-primary residence is $150.
- Hosts must display their permit numbers in any advertising.
- Hosts must keep four years’ records that include guests’ names, room rates, and the duration and dates of their stays.
- You must carry a liability insurance policy of $300,000.
- The city collects 5.1% hotel/motel tax from the guests.
Keep in mind that the above list of ordinances may not be exhaustive. As we always advise, consult your real estate agent, attorney, and local authorities for more information.
Airbnb Columbus Ohio Is Profitable
Though the above Airbnb Columbus Ohio ordinances may imply that the business isn’t that lucrative, the reality is different. Short-term rental hosts in Columbus still generate a handsome return on investment.
The following are some statistics from Mashvisor for the state of Ohio:
- Median Property Prices: $347,308
- Average Price per Square foot: $191
- Airbnb Rental Income: $2,477
- Airbnb Cash on Cash Return: 3.96%
- Airbnb Daily Rate: $142
- Airbnb Occupancy Rate: 57%
- Traditional Rental Income: $1,342
- Traditional Cash on Cash Return: 2.07%
- Days on Market: 89
- Walk Score: 46
As you can see, the Airbnb cash on cash return and monthly rental income statistics are higher than the ones for the traditional rental strategy. The Airbnb occupancy rate is also above average, meaning that you’ll experience a consistent flow of guests all year round. The above data are excellent indicators that Airbnb Columbus Ohio is a good investment in 2022.
As a smart real estate investor, you’ll be on the right path if you stick to the numbers. The best way to do it is to trust Mashvisor’s Rental Property Calculator. The tool is designed with the modern real estate investor in mind. Use it to find the most profitable investment property and gain a deeper insight into the performance of a particular housing market in any location.
2021 Columbus Ohio Housing Market Performance
To further understand the market trends and gain a deeper insight into predictive analytics, we need to look at how the market performed in the past year. First, you need to know that there was a high demand for property in Columbus Ohio in 2021. The surge in demand, combined with low inventory, drove property prices up.
According to Columbus Realtors, as of December 2021, home prices in Columbus were up 17.5% compared to the previous year. Similarly, home values rose 84% over the last five years. The median listing price for a single-family home was $225,000, while the median listing price per square foot was $152.
The average days on market for listed properties was 41, while the median selling price for a single-family home was $235,000. The sale-to-list price ratio was 98.94%, meaning that the average home in Columbus sold for a bit less than the listing price.
Of all the neighborhoods in Columbus (225 in total), German Village is the most expensive, with a median listing price of $599,000. On the other hand, South Linden is the most affordable neighborhood with a listing price of $115,000.
As of March 2022, there are a total of 908 homes listed for sale in Columbus on the Mashvisor platform. The properties’ prices range from $54,000 to $2,450,000. It means that, despite being one of the hottest real estate markets in the US, you can still invest in a short-term rental in the city without much capital.
Why Do People Visit Columbus Ohio?
As we promised, we’re now going to look at some of the attractions and activities that bring people to Columbus. The following attractions are important to your Airbnb business since they assure you of a high occupancy rate.
Many tourists want to get immersed in the local culture whenever they visit any place. The North Market is not only the largest farmer’s market in Central Ohio but also one of the oldest. It houses a multitude of local vendors who sell everything from fresh flowers to homemade bread. Visitors can dine in at diverse small eateries that serve German, Italian, Vietnamese, Indian, and Nepalese cuisine.
Remember, Ohio supports farmers who are the pillar of its agriculture industry. You’ll find the market especially vibrant on Saturdays when independent merchants also set up outside to sell local honey and fresh farm produce.
History and Art
The Ohio History Connection offers an experience of a lifetime for all people, regardless of whether you’re a history buff or not. You’ll find a village, museum, and library on the grounds. There are also several floors of educational and interactive exhibits that feature a lot of Ohio history.
For visitors with an artistic side, the Columbus Museum of Art will satisfy your thirst. The galleries and exhibitions here feature stunning photography, paintings, sculpture, and glass. In addition, you’ll also find the JP Morgan Chase Center for Creativity, which features a free creativity lounge with practical products that help bring out your artistic side.
The National Veterans Memorial and Museum is an exciting attraction where you’ll find history, photos, and memorabilia from US veterans who’ve served in every US military branch. Whenever you’re in Columbus, take advantage of the daily guided tours where you’ll get unique insights into the local exhibits.
It’s hard to find a busy city like Columbus with an outdoor adventure right at its heart. However, you’ll find outdoor adventures such as ziplining at ZipZone Outdoor Adventures. The tours here include canopy tours and moonlight tours. You’ll also find zip-rush tours that feature a brief freefall and rappel experience.
The Topiary Park is another treasure in Columbus that many people forget to appreciate. The park is home to 54 life-size topiary sculptures, complete with sculpted boats floating on the park’s pond.
How to Invest in Airbnb Columbus Ohio in 2022
If you’ve already made up your mind to put your money in Airbnb Columbus Ohio, you know that this isn’t something you get into blindly. There are some steps you need to follow to make sure you get the best out of your short-term rental.
Here is a step by step guide to help you find a profitable Airbnb in Columbus Ohio:
Determine the Ideal Property Type
Besides the location and government ordinances, the property type you choose for your Airbnb business is a key factor that determines how profitable the venture becomes. Note that the ideal property type is influenced by your location.
For example, if your Airbnb is located in the middle of the city, it makes sense to buy a condo or a small apartment. If you’re located in a rural area, in the mountains, or near the beach, it’d be better to buy a single-family home.
Also, keep in mind that the property type you buy influences the audience your business attracts. If you want to host solo travelers and young couples, you should buy a studio or one-bedroom apartment. On the other hand, families and larger groups will be more attracted to single-family homes with more bedrooms.
If you’re still not sure of the kind of property you want to invest in, Mashvisor Neighborhood Analytics is a great place to start. The tool uses AI to collect accurate data from the Airbnb website and other reliable platforms to help you figure out the property type and the number of bedrooms ideal for your location.
Determine Your Budget
Budget is one of the essential factors that determine the kind of property you buy. You don’t want to exhaust your funds on a property you can barely afford or take out a mortgage that you’ll be at risk of defaulting. Establish your budget before going out to look for properties and stick to it.
One of the important tips to creating a good budget is factoring in all sources of income, existing savings, and recurring expenses. Many people forget to include the closing costs (which amount to 2% of the buying price) and repairs you’ll need to make after purchasing. We’ve also seen that you’ll need to acquire a license to run an Airbnb in Columbus Ohio. Don’t forget to include the business registration fees.
In addition, allot some extra money for miscellaneous costs. There may be some unforeseen costs that you don’t want to catch you by surprise.
Let us allow you in on a little secret here; when setting your budget, be sure to look at Airbnb Comps. The comps data is quite essential in helping you understand how much the kind of property you desire would go for.
Start Your Property Search
Once you’ve identified the property type to buy and come up with a budget, it’s now time to start the actual property search. Traditionally, the process would involve driving through neighborhoods, looking for “for sale” signs, and browsing through property listings in newspapers. However, it is both tiring and takes a lot of your time.
Keep in mind that any smart investor will carry out Airbnb analysis while searching for property and be on the lookout for foreclosures, bank-owned properties, and off-market deals. They increase your chances of landing a profitable deal with a high return on investment.
This is where Mashvisor’s Property Finder comes in. Mashvisor’s tool comes with a lot of features to help you search for and identify lucrative Columbus Ohio investment properties. Other than searching for the properties, you can also narrow down the results using the following metrics:
- Property price (you can set the figure to match your budget)
- Property type
- Number of rooms
- Cap rate
- Cash on cash return
- Year built
- Property Status (whether it’s for sale, a foreclosure, pending, or already sold)
As you can see, this tool will also help you find a property that also matches your criteria.
Related: What Is a Good Cash on Cash Return?
Conclusion: Airbnb Columbus Ohio
Real estate investing is one of the best ways to make your money work for you. Airbnb investments are becoming popular due to the potential to offer you a good rate of return on investment and a positive cash flow.
We’ve already seen that investing in Airbnb Columbus Ohio in 2022 is a good move. While there’s a lot of potential, you shouldn’t just invest blindly. Use Mashvisor tools to make smart business decisions and avoid making mistakes.