AirBNB in Louisville - rules, regulations, tactics?

Question

Greetings! I am looking to buy a property in the Churchill Downs area and list it on AirBNB. Doing a little research, I'm starting to uncover some of the local laws (mainly from

https://www.courier-journal.com/story/news/politic...)

Right now I'm tracking a $25 registration w/ revenue commission and obtaining a conditional use permit. Does anyone know any additional requirements? Any other recommendations anyone is familiar with?

I don't currently live in Louisville but I did live there for 5 years for college (Go Cards!); I am definitely looking for recommendations or connections with people in the area!

Michael Seeker · Answer

@Michael Wisotzkey - you may want to reach out to the guys at KeySource as they manage a lot of AirBnB rentals and are very in the know when it comes to those things.  They should also be able to give you an idea of what type of income you could expect.  It's been a few years since I've lived in Lou myself, but can't imagine the numbers making sense on a short-term rental in that part of town.  It would be in high demand for a week or two a year, but I wouldn't think many people would be looking to stay in that neck of the woods at an AirBnB outside of the week of Derby.

Rob Bergeron · Answer

My biggest suggestion is go for larger homes. Target large groups. Way more bang for your buck! My friend Eric made over $65k on his Highlands airbnb.

Rob Bergeron · Answer

I have a client who cleared $4k a month when the track was running. Great investment area! His entry level cost was $50k.

Erik Hitzelberger · Answer

@Michael Wisotzkey - As was mentioned above, it's critical to know the market. For every week other than the one which culminates on the first Saturday in May, the biggest short-term rental demand for that area is created by the Expo Center. Trade shows are held from January- November and people come in from around the world every week. You will also draw guests who want fairly easy access to concerts and downtown with having to spend Highlands/Germantown money.

Joel Kleyer · Answer

You should utilize AirDNA's MarketMinder and Eliotandme.com (however this may be going away) to analyze potential revenue from such a venture.  Familiarize yourself with Louisville's short term rental regulations as well (https://louisvilleky.gov/government/planning-desig...).

Good luck!

Debbie Zimmer · Answer

@Mike Walsh  I agree with you.  Unless you know Louisville, you don't know of all the great events happening all year round to attract folks from all over.  People come from all over to tour the bourbon facilities, the concerts, river events.  I'm from Cincinnati and we make several trips a year down there and we normally stay at a B&B, but would love to use a VRBO / AirBNB.  Good Luck!!

Michael Wisotzkey · Answer

Simply going to AirBNB.com & looking at the area, there are a decent amount of listings in the area. Also looking at their calendar availability, the bookings look pretty good. Reading some reviews, the market doesn't seem solely dependent on Churchill Downs. With it being a central location with easy access to downtown/airport/UofL, it's supportable. The common denominator for 'complaints' (though they didn't negatively affect the reviews) was the neighborhood being sketchy. A few hosts include a disclaimer about it on the listing - one said it was a "working class neighborhood", haha.

I'm close to getting a property in the area, just trying to decide whether or not to rent or AirBNB. AirBNB obviously incurs the utilities (including internet...maybe cable/security), property management, and hotel/local taxes that I'm still trying to educate myself on...not to mention the upfront/semi-ongoing furnishing.

Mike Walsh · Answer

You both are very wrong.

People come for Derby all throughout the year.

Plenty of people want to be within walking distance of the tracks.

The rates for derby weekend are enough to pay 6 months of mortgage, taxes, and insurance.

Isn't there a saying for people who assume things?

Michael Seeker · Answer

There are all types of visitors with wide ranges of budgets/desires coming into town for Derby.  People will definitely pay a premium to be walking distance from the track and many B/C parts of town are in high demand just due to the overwhelming volume of people coming in.  That being said, I don't think you could "make your year" on one weekend near the track and I suspect anybody paying a premium to stay walking distance to the track in a mediocre neighborhood/house would not leave the place in good condition when they go.

Kyle Schlosser · Answer

I'd surmise that folks traveling in from outside of town for Derby (and related activities) would want to be in "A" areas (or thereabouts).

AirBNB in Louisville - rules, regulations, tactics?

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