Anchorage Short Term Rental Market

Anchorage Short Term Rental Market

Short term rentals have become increasingly popular in Anchorage over the years, offering both homeowners and visitors a flexible and convenient accommodation option. With the rise of platforms like Airbnb and VRBO, property owners have found new opportunities to monetize their homes while travelers have gained access to unique and affordable lodging experiences.

According to AIRDNA, as of October 2023 there are a total of 2,060 listings in Anchorage, the annual revenue is up 5% from the past year at $46.3k and the average daily rate is now $199.40. The occupancy rate is at 64%, with listing that have a one night stay having the most reservations at 44.4%, following two nights stay at 30.7% and 3 nights stay at 14.2%. For more information on short term rental data here is the link AIRDNA

A few things to consider when calculating costs, Anchorage Municipal Code (AMC) Chapter 12.20 authorizes the collection of a 12% tax on short-term room rental transactions, which are rentals of less than 30 days of continuous occupancy. There is also a new proposed licensing fee, two Anchorage Assembly members have proposed a new city licensing program for short-term and vacation rental units, including houses, apartments, and bedrooms rented via online booking platforms such as Airbnb and VRBO. The proposal aims to gather information critical to understanding the impact of short-term rentals on Anchorage’s housing supply, and to better ensure the units are safe and well-managed. The proposal would define a short-term rental as a unit rented to any person for less than 30 consecutive days. Anyone running a short-term rental in the municipality would be required to have a city license starting May 1, 2024. Licenses would be renewable and last for two years, costing an annual fee of $400 per short term rental. Please note that this information is current as of October 12th,2023 and may be subject to change. Anchorage Muni Code 

In Anchorage, municipal regulations have been implemented to address the growing popularity of short term rentals. These regulations aim to strike a balance between allowing homeowners to benefit from short-term rentals and ensuring the welfare of the community. It is crucial for both buyers and sellers to stay informed about these regulations to avoid any legal complications and ensure their transactions align with the requirements set by the municipality.

For buyers in the Anchorage short term rental market, purchasing a property with the intention of using it as a short term rental can be a lucrative investment. The demand for short term rentals is high, especially during peak tourist seasons. By carefully selecting a property in a desirable location and ensuring it meets all the necessary legal requirements, buyers can generate a consistent income stream from their investment. 

On the other hand, if you are a homeowner looking to sell your property in Anchorage, the short-term rental market can also work in your favor. The high demand for short term rentals means that properties with a successful rental history can be highly sought after by potential buyers. Highlighting the income potential and the unique features of your property that make it an attractive short term rental option can help you sell your property at a premium price.

In conclusion, the Anchorage short term rental market offers exciting opportunities for both buyers and sellers. By staying informed about municipal regulations, exploring the potential of short term rentals, and working with experienced real estate professionals, individuals can navigate this market successfully and reap the benefits of this lucrative industry.