Is Delaware, Ohio Good for Airbnb Investment?

To start an Airbnb in Delaware, Ohio, begin by researching local zoning laws and regulations through the City of Delaware Planning Department, as short-term rentals may require conditional use permits in certain residential zones and must comply with the city's rental registration ordinance established in 2019. Obtain necessary permits including a business license from the City of Delaware, register your rental property with the city's rental inspection program, and ensure compliance with fire safety codes and occupancy limits typically set at 2 people per bedroom plus 2 additional guests. Find a suitable property in Delaware's historic downtown area or near Ohio Wesleyan University for higher demand, ensuring it meets the city's minimum housing standards including proper egress windows, smoke detectors, and carbon monoxide detectors. Furnish the property with quality furniture, linens, kitchen essentials, and amenities like WiFi and cable TV while maintaining Delaware's required safety equipment including fire extinguishers and first aid kits. List your property on Airbnb and other platforms with professional photos highlighting Delaware's charm and proximity to Columbus (30 minutes south), setting competitive rates around $80-120 per night based on local market analysis. Manage your Airbnb by maintaining responsive communication with guests, coordinating cleaning services between stays, collecting and remitting Ohio's 5.75% state sales tax plus Delaware County's additional lodging taxes, and ensuring ongoing compliance with the city's annual rental inspections and any noise ordinances that typically restrict quiet hours from 10 PM to 7 AM in residential areas.

To identify profitable short-term rental properties in Delaware, Ohio, focus on locations within 2-3 miles of Ohio Wesleyan University campus and downtown Delaware's historic district, as these areas attract visiting families, prospective students, and business travelers year-round. Target 3-4 bedroom single-family homes or 2-bedroom condos built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these features command premium rates of $120-180 per night compared to basic accommodations at $80-100. Analyze comparable properties using AirDNA and Mashvisor to identify optimal pricing strategies, with peak demand during university events (graduation, homecoming, move-in weekends) and summer months when rates can increase 25-40%. Research competition by monitoring existing STR listings within a 5-mile radius, noting that Delaware currently has limited hotel inventory, creating opportunities for well-positioned vacation rentals. Utilize Delaware County's planning and zoning department resources to verify STR compliance, leverage Ohio's tourism data through TourismOhio.com for seasonal trends, and consider proximity to Alum Creek State Park and Delaware State Park which drive weekend recreational visitors, while maintaining acquisition costs below $200,000 to achieve target ROI of 12-15% annually after expenses.

To obtain an Airbnb/STR permit in Delaware, Ohio, you must first contact the Delaware City Planning and Zoning Department at City Hall located at 1 South Sandusky Street to determine if short-term rentals are permitted in your specific zoning district, as the city requires conditional use permits for STRs in most residential areas. Submit an application for a conditional use permit along with a site plan, proof of property ownership or lease agreement, liability insurance documentation showing minimum $1 million coverage, and a $150 application fee. You'll also need to provide a floor plan, parking plan showing adequate off-street parking, and a management plan detailing how the property will be maintained and monitored. The application undergoes a review process that includes notification to neighboring properties within 200 feet, a public hearing before the Planning Commission, and potential City Council review, typically taking 60-90 days for approval. Once approved, you must obtain a business license from the city for approximately $25 annually, register with the Ohio Department of Commerce for tax collection purposes, and comply with all fire safety codes and building inspections. Additional requirements include maintaining a local contact person available 24/7, limiting occupancy to posted maximums, providing adequate waste disposal arrangements, and ensuring compliance with noise ordinances and parking restrictions.

Short-term rentals (STRs) are legal in both Delaware and Ohio, but with varying local regulations. In Delaware, STRs are permitted statewide with no blanket state-level prohibitions, though individual municipalities can impose their own restrictions - for example, Rehoboth Beach has implemented registration requirements and occupancy limits, while Bethany Beach has stricter regulations including seasonal restrictions and parking requirements. Delaware's coastal resort towns typically have the most comprehensive STR regulations due to tourism impacts, with most requiring business licenses, tax collection, and compliance with zoning ordinances. Ohio similarly allows STRs at the state level, with cities like Columbus, Cleveland, and Cincinnati implementing registration systems, safety inspections, and occupancy limits since around 2018-2020. Recent changes in Delaware include several beach communities tightening regulations between 2020-2023, particularly regarding noise ordinances and maximum occupancy rules, while maintaining the overall legal framework that supports the short-term rental industry as an important component of the state's tourism economy.

Delaware, Ohio offers several promising areas for Airbnb investment, with the downtown historic district being the most attractive due to its proximity to Ohio Wesleyan University, which generates consistent demand from visiting families, prospective students, and university events throughout the academic year. The area near Delaware State Park and Alum Creek State Park attracts outdoor enthusiasts and families seeking weekend getaways, particularly during summer months and fall foliage season. The neighborhoods surrounding the Delaware County Fairgrounds see increased demand during the annual Delaware County Fair in September, one of Ohio's largest county fairs. Properties near the Olentangy River corridor appeal to visitors attending cycling events and outdoor recreation activities. The residential areas close to US Route 23 and Interstate 71 are ideal for business travelers commuting to Columbus while preferring quieter accommodations, as Delaware serves as a bedroom community for the Columbus metropolitan area. Additionally, properties within walking distance of downtown's antique shops, local restaurants, and the historic Strand Theatre benefit from cultural tourism and visitors exploring Ohio's small-town charm.

In Delaware, Airbnb hosts must collect a 8% state accommodations tax on stays under 30 days, which Airbnb collects and remits directly to the state for most properties, though hosts should verify their specific obligations with the Delaware Division of Revenue. Ohio imposes a 5.75% state lodging tax on short-term rentals under 30 days, and many municipalities add their own local lodging taxes ranging from 1% to 6%, with cities like Columbus charging 2.5% and Cleveland charging 3% on top of the state rate. Airbnb typically collects and remits both state and applicable local taxes automatically for participating properties, but hosts in non-participating jurisdictions must register with the Ohio Department of Commerce and local tax authorities, collect taxes from guests, and remit them monthly or quarterly depending on volume. Both states generally exempt stays of 30 days or longer from lodging taxes, and some jurisdictions may offer exemptions for certain types of guests or properties, though hosts should consult with local tax authorities to confirm current rates and collection procedures as these can change frequently and vary significantly by municipality.

To start an Airbnb in Delaware, Ohio, the total costs would be approximately $285,000-$315,000. Property purchase costs around $220,000-$240,000 based on median home prices in the area. Furnishing a 2-3 bedroom property would require $15,000-$25,000 for quality furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and inspection fees would total approximately $500-$1,500. Insurance for short-term rental coverage would cost $2,000-$3,000 annually. Utilities setup and deposits would be around $500-$800. First six months operating costs including utilities ($1,200), cleaning supplies and services ($1,800), maintenance and repairs ($2,000), property management software ($300), marketing ($500), and miscellaneous expenses ($1,200) would total approximately $7,000. Additional considerations include potential HOA fees, property taxes, and a reserve fund for unexpected expenses, which could add another $8,000-$12,000 to the initial investment.

Airbnb properties in Delaware and Ohio show varying profitability depending on location and property type, with Delaware coastal areas like Rehoboth Beach generating average annual revenues of $35,000-$55,000 for 2-3 bedroom properties, while Ohio markets such as Columbus and Cleveland typically see $18,000-$32,000 annually. In Delaware, oceanfront properties near popular beaches can achieve 65-75% occupancy rates during peak season with nightly rates of $200-$400, resulting in profit margins of 25-35% after accounting for expenses including mortgage payments ($1,800-$2,500 monthly), property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($150-$250 monthly), and maintenance reserves. Ohio properties, particularly in urban areas like Cincinnati's Over-the-Rhine district or near Ohio State University in Columbus, demonstrate profit margins of 15-25% with average nightly rates of $80-$150 and occupancy rates of 55-70%. Success factors include proximity to attractions (Delaware beaches, Ohio's Cedar Point, Rock and Roll Hall of Fame), professional photography, dynamic pricing strategies, and excellent guest communication, with top-performing hosts in both states reporting 20-40% higher revenues than average through superior property presentation and guest experience management.

Airbnb investments in Delaware and Ohio typically generate annual ROI of 8-15% and 10-18% respectively, with Delaware markets like Rehoboth Beach and Bethany Beach commanding higher returns during peak summer seasons due to strong vacation rental demand, while Ohio markets including Columbus, Cleveland, and Cincinnati offer more consistent year-round performance. Cash-on-cash returns generally range from 6-12% in Delaware and 8-14% in Ohio, with properties near Ohio State University in Columbus and beach properties in Delaware achieving the higher end of these ranges. Most investors reach profitability within 12-18 months in Ohio markets due to lower property acquisition costs averaging $150,000-$250,000, while Delaware coastal properties requiring $300,000-$500,000 investments typically achieve profitability within 18-24 months. Delaware's seasonal nature creates higher nightly rates of $150-$400 during summer months compared to Ohio's more stable $80-$180 range, but Ohio maintains better occupancy rates of 65-75% annually versus Delaware's 45-60%, making both markets viable with Ohio favoring consistent cash flow and Delaware offering higher peak-season returns for investors willing to manage seasonal fluctuations.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties across multiple markets including Delaware and Ohio. In Delaware, local real estate agents like those at Berkshire Hathaway HomeServices Fox & Roach Realtors and Coldwell Banker Realty have experience with investment properties in beach markets like Rehoboth Beach and Bethany Beach. Ohio-based services include Cleveland-area agents at Howard Hanna Real Estate and Keller Williams who understand markets in Columbus, Cincinnati, and Cleveland. National companies serving both states include Mashvisor (founded 2014), which provides Airbnb analytics and property recommendations, AirDNA for market data analysis, and Awning (launched 2020) which offers full-service Airbnb investment management. BiggerPockets marketplace connects investors with local agents experienced in short-term rentals, while Roofstock (founded 2015) occasionally features turnkey rental properties suitable for Airbnb conversion. Local property management companies like RedAwning and Vacasa also provide insights on profitable markets and can assist with property identification in both Delaware's coastal areas and Ohio's major metropolitan markets.