Top LocationsShould You Invest in Airbnb Philadelphia in 2019? by Yassine Ugazu July 4, 2019July 4, 2019 by Yassine Ugazu July 4, 2019July 4, 2019Over the past few years, short term rentals have emerged as a lucrative option for real estate investors. The high potential for profits coupled with the ease of finding new tenants has prompted many people to pivot from a traditional investing approach to a short term rental strategy. This has been made exceptionally easy thanks to platforms such as Airbnb. Having said that, there is still some ambiguity concerning the legal status of non-owner occupied rentals. In this article, we will focus on the Philadelphia real estate market and explore whether or not you should invest in Airbnb Philadelphia in 2019.Is Airbnb Legal in Philadelphia?Like many cities across the United States, the legal framework for short-term rentals in Philadelphia was established recently. Last year, various local governments were still sending cease-and-desist letters to rental property owners. The stop orders didn’t target the city but many Philadelphia vacation rental owners still felt uncertain. Fortunately, their fears turned out to be unfounded. Short-term rentals are legal in Philadelphia thanks to a law that went into effect in 2015. Below is a brief overview of Airbnb regulations in the city: You can rent out the property for a maximum of 30 days at a time and 180 days in a yearThe property should have a working smoke and carbon monoxide alarm systemYou are not allowed to install lodging signs outside the rental propertyThe property shouldn’t host more than three people who are not relatedIt has to be your primary residenceYou should apply for a visitor accommodations variance if the Airbnb rental property is not your primary residenceYou are not allowed to make radical physical changes to the homeThe property is subject to short-term rental taxes of 8.5% on the amount received by the hostIt is important to note that these laws only apply to Airbnb Philadelphia. Homeowners from adjacent jurisdictions should check local regulations to make sure that they’re in compliance with the law.Philadelphia Housing Market DataNow that we’ve gone over Airbnb laws in the city, we can get into the Airbnb analytics for Philadelphia. Real estate data is extremely valuable for anyone looking for Philadelphia investment properties. The convenient thing is that you can gain access to such data right here on Mashvisor! Tools such as the Airbnb profit calculator can be of great help to you. To learn more about it, click here. But first, let’s take a look at some Airbnb Philadelphia analytics.Median Property Price: $358,220Price per Square Foot: $361Price-to-Rent Ratio: 20Airbnb Rental Income: $2,148Airbnb Cap Rate / Cash on Cash Return: 2.7%Airbnb Occupancy Rate: 49.5%As valuable as these numbers are, they’re still a long way from painting the full picture. Real estate investing involves several moving parts and the use of such data is just one aspect of it. Let’s delve deeper into the reasons why you should consider investing in Airbnb Philadelphia.Related: Top Philadelphia Real Estate Market Trends for This YearWhy You Should Invest in Airbnb PhiladelphiaAs you can see from the data above, housing prices in the Philadelphia real estate market are significantly low relative to larger cities like Boston and New York City. Furthermore, the cash flow that Philadelphia investment properties can generate with the Airbnb rental strategy is remarkably high. More importantly, all economic indicators point to a booming market that is ideal for an Airbnb investment property.Here are some of the factors that make Airbnb Philadelphia a lucrative investment.1 – The city boasts a growing tourism sectorOne of the hallmarks of an attractive real estate market is a healthy tourism industry. In Philadelphia’s case, a record number of tourists was registered last year and the upward trend is expected to continue. This bodes well for Airbnb Philadelphia as the influx of tourists will result in a high Airbnb occupancy rate.2 – The market is not saturated with Airbnb listingsOne of the biggest issues that plague major markets such as Los Angeles and New York is the saturation of Airbnb listings. This is due to the fact that investors got in early, which ended up putting significant downward pressure on Airbnb rates. Airbnb Philadelphia, on the other hand, is still a relatively nascent market where real estate investors can make a decent rental income without incurring a lot of expenses.3 – Philadelphia is a buyer’s marketThe Philadelphia real estate market has experienced a shift to the buyer in recent months. This is an ideal situation for real estate investors. Thanks to this shift, finding affordable Philadelphia houses for sale has become very easy. In a buyer’s market, prices are relatively low and bidding wars between buyers rarely occur due to high inventory. This is in stark contrast with the seller’s market where prices remain high and inventory is scarce. Essentially, you will have no trouble finding and buying the ideal Airbnb investment property for your business. Find a Profitable Airbnb Investment PropertyRelated: Philadelphia Real Estate Market 2019: Why and Where to InvestInvestment Data for the Best Neighborhoods in PhiladelphiaAs you know, data can significantly vary from neighborhood to neighborhood. This is why a detailed breakdown of different locations in the city is essential. Here are the top neighborhoods that you should check out when you’re looking to invest in Airbnb Philadelphia.KingsessingMedian Property Price: $104,098Price per Square Foot: $86Price-to-Rent Ratio: 10Airbnb Rental Income: $2,530Airbnb Cap Rate / Cash on Cash Return: 9.0%Airbnb Occupancy Rate: 62.7%McGuireMedian Property Price: $69,614Price per Square Foot: $71Price-to-Rent Ratio: 4Airbnb Rental Income: $1,396Airbnb Cap Rate / Cash on Cash Return: 8.8%Airbnb Occupancy Rate: 44.5%FairhillMedian Property Price: $72,000Price per Square Foot: $71Price-to-Rent Ratio: 7Airbnb Rental Income: $1,157Airbnb Cap Rate / Cash on Cash Return: 7.6%Airbnb Occupancy Rate: 38.2% East ParkMedian Property Price: $74,950Price per Square Foot: $74Price-to-Rent Ratio: 6Airbnb Rental Income: $1,709Airbnb Cap Rate / Cash on Cash Return: 7.6%Airbnb Occupancy Rate: 48.4%Haverford NorthMedian Property Price: $159,600Price per Square Foot: $143Price-to-Rent Ratio: 18Airbnb Rental Income: $1,884Airbnb Cap Rate / Cash on Cash Return: 7.3%Airbnb Occupancy Rate: 50.6%Related: What Kind of Neighborhood Has the Best Investment Properties?Airbnb Philadelphia offers tremendous opportunities for any real estate investor willing to capitalize on the current positive market trends. When you consider the easy entry, the high Airbnb rental income, and the overall growth potential of the city, buying an Airbnb investment property in Philadelphia can easily be the wisest investment decision you make in 2019.To find the perfect investment property and start renting out on Airbnb, click here to start your 14-day FREE trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsNeighborhoodPhiladelphia PA 0FacebookTwitterGoogle +PinterestLinkedin Yassine UgazuYassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate. Previous Post How to Win a Property Auction: 7 Tips Next Post 7 Ways to Give Your Property Management Career a Boost Related Posts 5 Key Jacksonville Real Estate Market Trends for 2019 5 Best Cities in the South Florida Real Estate Market Cleveland Real Estate Is Becoming Popular To Investors Price-to-Rent Ratio: Everything You Need to Know The 20 Best Places to Buy a Vacation Home in the US at the Beginning of 2018: Part 2 What Are the Best Places to Invest in the California Real Estate Market? Sunshine Investing- The 5 Best Places to Own a Beach House Baltimore Real Estate Market 2018: Why and Where to Invest Top 5 Major Cities for Buy-and-Hold Investment Properties Here’s Why the Orlando Housing Market Is Hot for 2019 Best Places to Invest in Real Estate: Going International What Are the Hottest Real Estate Markets 2018 in the US?