Set aside a few minutes from your schedule to read about how to start an Airbnb in Georgia in 2023 and how the strategy benefits your portfolio.
Short term rentals continue to become the most desirable alternative to hotels, and more and more tourists are opting for such a budget-friendly form of accommodation when traveling. Airbnb’s rising popularity, as you can already guess, makes it an excellent option for a passive income.
Table of Contents
- Is Airbnb Profitable in Georgia?
- Short Term Rental Regulations in Georgia
- How to Start an Airbnb in Georgia in 5 Steps
- Top 10 Cities in Georgia for Airbnb
Suppose you are a homeowner in Georgia with an empty property or a prospective investor looking for suitable locations for your next real estate hotspot. If that is the case, the State of Georgia should definitely be on your investment bucket list in 2023.
According to Explore Georgia, tourist numbers are strong in the state, and it is also seeing considerable economic progress. And let’s not forget about its indescribable natural attractions.
However, before making your investment plan official, there are a few things you should note down on how to start an Airbnb in Georgia—and we’re here to help.
Mashvisor’s here to guide you through the entire process—from start to finish—and help you with your decision-making.
Read on to learn more about the local regulations governing Airbnb properties in Georgia, the cities that are currently the most popular locations, and the compelling reasons to make it your next investment opportunity.
Related: How to Find Reliable Airbnb Rental Data in 2023
Is Airbnb Profitable in Georgia?
That’s a no-brainer.
Investing in Georgia Airbnb is undoubtedly a profitable strategy.
One of the main reasons why it is a compelling option among investors is its flexible rental laws—which we’ll get to in a minute. In addition to the state’s favorable laws, the mild climate is another major factor that attracts tourists from all over.
If you’re in the real estate business, you’re aware that hard evidence is your most reliable indicator of success.
With that being said, there’s no better way to introduce the topic of how to start an Airbnb in Georgia than by laying down the latest data from Mashvisor’s April 2023 location report:
- Median Property Price: $463,717
- Average Price per Square Foot: $634
- Days on Market: 80
- Number of Long Term Rental Listings: 17,977
- Monthly Long Term Rental Income: $2,108
- Long Term Rental Cash on Cash Return: 3.47%
- Long Term Rental Cap Rate: 3.53%
- Price to Rent Ratio: 18
- Number of Airbnb Listings: 25,346
- Monthly Airbnb Rental Income: $2,440
- Airbnb Cash on Cash Return: 2.54%
- Airbnb Cap Rate: 2.59%
- Airbnb Daily Rate: $167
- Airbnb Occupancy Rate: 38%
- Walk Score: 45
The Advantages of Investing in Georgia
After going through the numbers mentioned above and seeing how the market is performing first-hand, you’re probably thinking about the possible advantages of investing in Georgia.
That’s why we’re highlighting the most noteworthy ones below:
Outdoor Activities
If you’re already thinking about how to invest in Airbnb in Georgia, you’ll need to take some time to consider the experience you’ll be providing to your future guests, too.
They will be visiting the property for a short time, so your job is to recommend activities that not only meet—but exceed—their expectations.
The State of Georgia offers its residents and tourists unforgettable outdoor experiences and activities that will fill their days with adventure. Those who are coming on a short vacation to Georgia can enjoy its breathtaking outdoors.
There are many options to choose from. Here are a few popular outdoor activities that you can recommend to your future guests:
- Hiking on the Appalachian Trail
- Visiting the Altamaha River
- Enjoy stunning views from the Fort Mountain State Park
- Experience spring in Gibbs Gardens
Booming Economy
The advantages of investing in Airbnb in Georgia are not only reflected in the state’s natural attractions, though. There is more to consider on how to start an Airbnb in Georgia, and the second compelling reason is its thriving economy.
Business-wise, Georgia is the 11th most successful state in the country, according to the US News & World Report. The skilled workforce, favorable tax rates, and constant economic development all make Georgia one of the most enviable markets.
As the local economy thrived, housing prices became more affordable, too.
For example, from Mashvisor’s latest monthly report, the median property price in Georgia ($463,717) is significantly lower than in California ($1,000,028) or Hawaii ($1,149,199)—both popular rental markets.
Good Educational System
Another compelling reason to invest in Georgia is its good education system. Some of the best public and private colleges are located right here in the state. The abundance of reputable educational institutions makes it a popular and highly-visited location for students.
Some highly-rated educational facilities in Georgia include:
- Emory University
- Georgia Institute of Technology
- Spellman College
Related: The Ultimate Beginner’s Guide to Airbnb Analytics for Hosts
Short Term Rental Regulations in Georgia
Now, before you start an Airbnb in Georgia, you need to familiarize yourself with the rental regulations in the state. Here are some great news in that regard:
The state of Georgia does not require obtaining any major state-level permits and licenses.
Here’s what you need to know:
To start an Airbnb in Georgia, you must first be registered with the Georgia Department of Revenue. It will allow you to take care of your taxes. The registration can be done online, after which the host will receive their Georgia Tax Identification Number.
Additionally, you don’t need to form an LLC to run a short-term rental business in the state, which is a huge relief for someone just stepping into the real estate business.
We already mentioned that favorable tax rates are one of the major reasons why investors are drawn to Georgia. Let’s elaborate on it.
Basically, if you own a short term rental in Georgia, you need to pay two types of taxes: hotel motel and sales taxes. The latter is fixed at 4%, while the former depends on the specific city you decide to invest in.
Even more so, you can choose to pay taxes on a monthly, quarterly, and annual basis.
Also, Airbnb hosts in Georgia can choose to deduct certain expenses related to their property, including mortgage interest and insurance premiums, depreciation, maintenance, utilities, and cleaning, among others.
Related: How to Find Short Term Rentals for Sale
How to Start an Airbnb in Georgia in 5 Steps
If you are certain that investing in Airbnb in Georgia is definitely the next best move for your real estate career, here’s how you can do it in five simple steps:
1. Budget Planning
Before you start the whole process of investing, renovating, applying for licenses—and even looking at properties—you need to focus on your budget.
If you’re buying a rental property, you must set the lower and upper limits that you would pay, which means a lot of math. If you’re new to real estate investing, you can ask for the help of a financial advisor.
And what if you are only renovating your empty property?
In that case, you must set a specific budget for yourself; that is, how much money you can allocate in order to prepare your property for guests.
2. Market Research
After you are financially secure, it’s time to move on to the second step: researching the real estate market, which in our case, is Georgia.
Here, you must be thorough and, above all, sure of what you are looking for.
You can start by deciding whether to invest in single-family homes, apartments, or duplexes. Make sure you look at every piece of the puzzle.
Airbnb Atlanta, Cleveland, Roswell—all the said locations are usually sought after by investors, and their stats will support the fact.
Your main goal here is to focus on the properties that can help you maximize your profits. On that note, Mashvisor’s Property Finder is the perfect tool to ensure you make the best choice.
It is a specially-designed investment tool that helps you sort through properties according to your preferences. Your only job is to set the criteria for the perfect short term rental property, start the search, and Mashvisor will do the rest.
On the Property Finder page, you can see properties that match your search criteria and investment goals. The properties will be sorted according to their performance in terms of:
- Listing Price
- Rental Income
- Occupancy Rate
- Cap Rate
- Cash on Cash Return
Get instant access to the latest real estate data that will help you make the best investment decisions. Sign up for Mashvisor’s 7-day free trial now.
Mashvisor’s Property Finder a specially-designed investment tool that helps you search for and sort through Airbnb properties based on your preferences.
3. License and Permit Obligations
While investing in short term rentals in Georiga is not a headache, it still requires a certain level of responsibility from you. So, if you’re set on the location, it is time to inquire about the licenses and permits that come with it.
Keep in mind that, depending on the city you decide to invest in, the formalities and requirements differ.
Therefore, it is crucial that you do not postpone the said obligations and handle the paperwork with care so as not to face legal problems in the future.
4. Property Equipment/Renovation
Now that all the paperwork is in order, your next obligation is to tend to your rental property’s needs. While some recently-bought properties may need only a few touch-ups to make them personalized, others may require a complete renovation on your side.
Here’s something to keep in mind:
Preparing your property and equipping it with the necessary furniture and gadgets depends on your target guests. For example, if you plan on renting your property to solo travelers, couples, or small groups, you should emphasize technology and gadgets.
On the other hand, if your primary guests are families with kids and pets, you should focus on furniture, supplies, and other useful kid- and pet-friendly things.
5. Airbnb Listing
The last step is to update your Airbnb listing and make it available to interested guests. So, choose a platform on which you would like to advertise your short term rental, and then start filling in the blanks.
Create a detailed description of your property (both the interior and exterior), amenities, and nearby attractions that might be of interest to your future guests. And more importantly, back up your claims with professional photographs of your property.
Last but not least—be sure to read and respond to guest reviews.
Maintain communication with your past and future guests. It will contribute to building a lasting relationship, increasing your Airbnb occupancy rate, and ensuring a more pleasant experience for your guests.
Top 10 Cities in Georgia for Airbnb
Now that you’re familiar with Georgia’s main advantages, short term rental regulations, and, most importantly, how to start an Airbnb there, we can get to the key point of this guide—the top cities to invest in.
Based on our Mashvisor’s April location data, we listed the top 10 cities that would help you generate the most profit. The locations are arranged in descending order in terms of cash and cash return.
1. Gainesville
- Median Property Price: $543,404
- Average Price per Square Foot: $2,639
- Days on Market: 84
- Number of Airbnb Listings: 163
- Monthly Airbnb Rental Income: $4,251
- Airbnb Cash on Cash Return: 5.10%
- Airbnb Cap Rate: 5.17%
- Airbnb Daily Rate: $247
- Airbnb Occupancy Rate: 50%
- Walk Score: 84
2. Macon
- Median Property Price: $270,134
- Average Price per Square Foot: $134
- Days on Market: 54
- Number of Airbnb Listings: 220
- Monthly Airbnb Rental Income: $2,223
- Airbnb Cash on Cash Return: 4.91%
- Airbnb Cap Rate: 5.04%
- Airbnb Daily Rate: $112
- Airbnb Occupancy Rate: 46%
- Walk Score: 66
3. Savannah
- Median Property Price: $590,060
- Average Price per Square Foot: $372
- Days on Market: 77
- Number of Airbnb Listings: 1,711
- Monthly Airbnb Rental Income: $3,673
- Airbnb Cash on Cash Return: 4.80%
- Airbnb Cap Rate: 4.87%
- Airbnb Daily Rate: $239
- Airbnb Occupancy Rate: 48%
- Walk Score: 72
4. Eatonton
- Median Property Price: $603,497
- Average Price per Square Foot: $3,336
- Days on Market: 110
- Number of Airbnb Listings: 153
- Monthly Airbnb Rental Income: $4,013
- Airbnb Cash on Cash Return: 4.66%
- Airbnb Cap Rate: 4.72%
- Airbnb Daily Rate: $289
- Airbnb Occupancy Rate: 44%
- Walk Score: 55
5. Conyers
- Median Property Price: $346,106
- Average Price per Square Foot: $185
- Days on Market: 88
- Number of Airbnb Listings: 105
- Monthly Airbnb Rental Income: $2,863
- Airbnb Cash on Cash Return: 4.64%
- Airbnb Cap Rate: 4.72%
- Airbnb Daily Rate: $186
- Airbnb Occupancy Rate: 40%
- Walk Score: 72
6. Saint Simons Island
- Median Property Price: $881,619
- Average Price per Square Foot: $379
- Days on Market: 56
- Number of Airbnb Listings: 231
- Monthly Airbnb Rental Income: $5,247
- Airbnb Cash on Cash Return: 4.41%
- Airbnb Cap Rate: 4.44%
- Airbnb Daily Rate: $257
- Airbnb Occupancy Rate: 44%
- Walk Score: N/A
7. Dahlonega
- Median Property Price: $578,076
- Average Price per Square Foot: $247
- Days on Market: 94
- Number of Airbnb Listings: 184
- Monthly Airbnb Rental Income: $3,250
- Airbnb Cash on Cash Return: 4.30%
- Airbnb Cap Rate: 4.37%
- Airbnb Daily Rate: $222
- Airbnb Occupancy Rate: 43%
- Walk Score: 30
8. Roswell
- Median Property Price: $626,485
- Average Price per Square Foot: $380
- Days on Market: 51
- Number of Airbnb Listings: 106
- Monthly Airbnb Rental Income: $4,332
- Airbnb Cash on Cash Return: 3.99%
- Airbnb Cap Rate: 4.03%
- Airbnb Daily Rate: $192
- Airbnb Occupancy Rate: 48%
- Walk Score: 77
9. Jonesboro
- Median Property Price: $290,853
- Average Price per Square Foot: $157
- Days on Market: 70
- Number of Airbnb Listings: 105
- Monthly Airbnb Rental Income: $2,065
- Airbnb Cash on Cash Return: 3.84%
- Airbnb Cap Rate: 3.92%
- Airbnb Daily Rate: $167
- Airbnb Occupancy Rate: 33%
- Walk Score: 45
10. Cleveland, GA
- Median Property Price: $441,978
- Average Price per Square Foot: $242
- Days on Market: 76
- Number of Airbnb Listings: 133
- Monthly Airbnb Rental Income: $2,824
- Airbnb Cash on Cash Return: 3.82%
- Airbnb Cap Rate: 3.88%
- Airbnb Daily Rate: $239
- Airbnb Occupancy Rate: 43%
- Walk Score: 56
Search through Georgia’s short term rental properties that will make an excellent addition to your investment portfolio with the help of Mashvisor.
Summing Up: How to Start an Airbnb in Georgia
We just successfully went over everything related to how to start an Airbnb in Georgia, the benefits of investing in the state, the short term rental regulations, and more. We even mentioned some potential locations that could help you make money from your property.
Before we sign off, though, let’s highlight the key takeaways:
If you are interested in investing in Georgia short term rentals, you are definitely on the right track to success. The state boasts a thriving economy, quality education system, and picturesque outdoors.
In short, there’s something for everyone in Georgia.
To the investor’s luck, the formalities of investing in Georgia aren’t demanding. There are no state-level licenses you need to worry about, and the taxes are at an acceptable level.
You can become a short term rental host in Georgia by following five simple steps:
Decide on your budget, research the market, obtain permits, equip your property, and list it on the Airbnb platform for your future guests to see.
Mashvisor is here to assist investors from the beginning to the end of the investment journey. If you’re considering investing, schedule a free inquiry with one of our specialists. We’re here to offer only the best tools and services that will contribute to your investment strategy.
Schedule a demo now and thank us later.
