Burlington, Kentucky

Burlington, Kentucky, is located in Boone County and serves as a suburb of Cincinnati, Ohio. As a growing community, it offers a blend of suburban living with easy access to urban amenities. The short-term rental market in Burlington has been buoyed by favorable location attributes, which appeal to both leisure and business travelers.

With its proximity to Cincinnati and a range of local attractions, Burlington is becoming increasingly attractive for short-term rental investors. The current average daily rate (ADR) stands at $273.1, highlighting a potentially lucrative market for investors looking to attract short-term visitors.

To better understand the short-term rental landscape in Burlington, it is essential to look at key performance indicators (KPIs):

• Average Daily Rate (ADR): $273.1
• Occupancy Rate: While specific occupancy rates can vary, most short-term rentals in similar suburban markets report ranges from 60% to 75% year-round.
• Revenue Per Available Room (RevPAR): Based on the ADR and average occupancy rate, the RevPAR can be approximated. For example, with an occupancy rate of 70%, the RevPAR would be approximately $191.17.
• Length of Stay: Typical stays range from 2 to 4 nights, attracting mostly families and business travelers for short visits.
• Supply Growth Rate: Increased interest in short-term rentals may drive supply growth, leading to a competitive market.

These KPIs underscore the financial potential of the short-term rental market while also highlighting systems to measure performance effectively.

Burlington has experienced a notable population growth of approximately 15% over the past decade, leading to economic improvements and increased living standards. This increase correlates with a growing interest in short-term rentals fueled by the expansion of the local business landscape, including emerging tech firms and distribution centers.

Investors should consider the following growth indicators over the last ten years:

• Real Estate Prices: Real estate prices have been on an upward trend, with property values increasing roughly 30% from 2013 to 2023. This indicates a solid appreciation potential for property investments.
• Visitor Numbers: Tourism data shows an increase in visitors, contributing positively to local businesses and services that cater to short-term rental guests.
• Local Development: New commercial facilities, parks, and recreational options have enhanced the area's appeal, making it attractive for both residents and temporary visitors.

Overall, Burlington's positive growth trajectory suggests a supportive environment for investors entering the short-term rental market.

With the average ADR at $273.1 and anticipated occupancy rates around 70%, investment in short-term rentals in Burlington appears promising. Using these figures, investors can estimate potential gross revenue:

1. Monthly Revenue:

   • Gross revenue = ADR * Occupancy Rate * Days in a Month
   • Gross Revenue ≈ $273.1 * 0.70 * 30 = $5,731.17

2. Annual Revenue:

   • Annual Gross Revenue ≈ $5,731.17 * 12 = $68,773.99

3. Investment Assessment: Consider the average property price in Burlington (which currently rests around $350,000). Assuming an investor puts down 20% ($70,000), the remaining loan amount would be $280,000. If we assume an annual property management fee of 20%, the net annual income would be:

   Annual Revenue – Management Fees = $68,773.99 – ($68,773.99 * .20) = $55,018.72

Using this, investors can derive an approximate ROI based on initial investment:

• ROI Calculation:
  • ROI = (Net Income / Initial Investment) * 100
  • ROI ≈ ($55,018.72 / $70,000) * 100 ≈ 78.6%

This projected ROI indicates strong potential for short-term rental investments in Burlington, particularly for new entrants or those looking to replenish their portfolios.

Burlington sees varied demand throughout the year, significantly impacting occupancy rates and pricing:

• Summer Months (June – August): Peak season as families vacation. Occupancy often exceeds 80%, with rates fluctuating above the ADR.
• Fall (September – November): Moderate demand with occupancy typically around 70%. The demand rises during the fall festival season.
• Winter (December – February): Occupancy dips to around 60% as cold weather sets in, though holiday travel may provide temporary boosts.
• Spring (March – May): Demand increases leading up to graduation and wedding seasons, raising occupancy into the 70-75% range.

Understanding these seasonal patterns can aid investors in pricing strategies and adjusting marketing efforts accordingly.

In Burlington, different property types are emerging as popular among short-term rental guests:

• Single-Family Homes: Most commonly rented properties, suited for families.
• Apartments and Condos: Increasingly popular among business travelers and couples looking for shorter stays.
• Unique Properties: Options such as cabins or themed stays garner niche interest, indicating diverse guest preferences.

The performance of each property type can vary, with single-family homes typically commanding higher ADR due to space and private amenities.

When examining guest preferences, certain amenities stand out as critical to increasing booking rates:

1. Fully Equipped Kitchens: Many guests prefer the option to prepare their meals, particularly families and long-term travelers.
2. Outdoor Space: Properties with yards, decks, and patios tend to receive higher ratings and lead to more bookings.
3. Wi-Fi & Entertainment Facilities: Especially important for business travelers or guests needing to work remotely.
4. Pet-Friendly Options: Given the increasing number of travelers with pets, properties that allow them can appeal to a broader audience.

Investors should consider updating their amenities to align with these preferences and enhance guest satisfaction.

Understanding the regulatory landscape is essential for prospective investors:

• Registration Requirements: Many cities have enacted policies that necessitate registration as a short-term rental operator. Check local regulations for Burlington to confirm compliance requirements.
• Zoning Laws: Some areas may have restrictions regarding the types of properties suitable for short-term rentals. Potential investors should be familiarized with local zoning ordinances.
• Tax Obligations: Investors are responsible for collecting and remitting applicable transient occupancy taxes, which can affect overall profitability.

Engaging in discussions with other local property owners, as well as legal consultation, can ensure compliance with the rules governing short-term rentals.

Burlington is divided into several neighborhoods, each having distinct characteristics for short-term rentals:

• Downtown Burlington: Encompasses a mix of historical architecture with access to parks and restaurants, attracting business travelers.
• North Burlington: More suburban and family-focused, which could appeal to guests attending local events or visiting family.
• East Burlington: Close to the I-71/75 corridor, providing accessibility for travelers, thus desirable for short stays.

Focusing on neighborhood strengths will assist investors in selecting properties that align with market demand.

The outlook for short-term rentals in Burlington remains positive. Observations for future trends include:

1. Increased Integration of Technology: Smart home devices, automated check-ins, and booking technology are growing expectations among guests.
2. Focus on Sustainability: Eco-conscious travelers are increasingly seeking properties that demonstrate sustainability practices.
3. Remote Work Influence: As remote work persists, longer stays and a shift in guest demographics towards digital nomads may further support the local market.
4. Emerging Trends in Travel: Post-pandemic travel preferences are shifting, indicating more preference for space and privacy, traits associated with short-term rentals.

Investors who are proactive in adapting to these emerging trends will be better positioned for long-term success in the Burlington market.