Is Donaldson Run, Virginia Good for Airbnb Investment?

To start an Airbnb in Donaldson Run, Virginia, begin by researching Arlington County's short-term rental regulations, which require hosts to obtain a Transient Occupancy Tax Certificate and comply with zoning restrictions that typically limit rentals to primary residences with a maximum of 30 days per year unless you're an owner-occupant. Contact Arlington County's Department of Community Planning, Housing and Development at 703-228-3525 to verify current permit requirements and fees, which generally include a business license ($30-50 annually) and transient occupancy tax registration. Find a suitable property in Donaldson Run's residential neighborhoods near Chain Bridge Road or Military Road, ensuring it meets county safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local area guides, budgeting approximately $3,000-8,000 for a one-bedroom setup. Create your Airbnb listing with professional photos highlighting proximity to Washington DC (15 minutes), Reagan National Airport (20 minutes), and local attractions like Theodore Roosevelt Island, setting competitive rates around $80-150 per night based on comparable properties. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Arlington County's 10% transient occupancy tax collection and quarterly remittance requirements while keeping detailed records for both tax purposes and county inspections that may occur annually.

To identify profitable short-term rental properties in Donaldson Run, Virginia, focus on properties within walking distance of the Potomac River waterfront and close to major commuter routes like Route 123 and the George Washington Memorial Parkway, as this affluent Arlington County neighborhood attracts business travelers heading to DC and tourists visiting nearby attractions. Target 3-4 bedroom single-family homes or townhouses built after 1980 with modern amenities, parking spaces, and outdoor areas like patios or decks, as these command premium rates of $200-400 per night in this market. Analyze comparable properties using AirDNA and Mashvisor to identify optimal pricing strategies, typically 20-30% higher than similar properties in less desirable Arlington locations due to Donaldson Run's proximity to Washington DC and Reagan National Airport. Research competition by monitoring existing STR listings within a 2-mile radius, noting that successful properties often emphasize their location near Chain Bridge, easy Metro access via Rosslyn station, and proximity to Georgetown, while differentiating through luxury amenities or unique design features. Utilize tools like Rabbu and AllTheRooms for market analysis, partner with local property management companies familiar with Arlington County's STR regulations, and leverage the area's appeal to government contractors, consultants, and tourists visiting the Kennedy Center and Smithsonian museums to achieve occupancy rates of 70-85% year-round.

To obtain an Airbnb/STR permit in Donaldson Run, Virginia, you must apply through Arlington County since Donaldson Run is an unincorporated community within Arlington County jurisdiction. Submit your application to the Arlington County Zoning Office located at 2100 Clarendon Boulevard, submitting Form ZA-2021-0001 (Short-Term Rental Registration) along with required documents including property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), fire safety inspection certificate from Arlington County Fire Department, and business license from Arlington County. The application fee is approximately $150 with an annual renewal fee of $75, and you must also obtain a business license costing around $50 annually. The timeline typically takes 4-6 weeks for initial approval after submitting complete documentation. Specific Donaldson Run/Arlington County requirements include limiting occupancy to 2 guests per bedroom plus 2 additional guests maximum, maintaining a 24/7 local contact person within 30 minutes of the property, installing smoke and carbon monoxide detectors in all bedrooms and common areas, providing adequate parking (minimum 1 space per rental), and ensuring compliance with noise ordinances between 10 PM and 7 AM. Properties must be owner-occupied or have written homeowner association approval if applicable, and you cannot operate STRs in buildings with 4+ units unless specifically zoned for commercial use.

Short-term rentals (STRs) in Donaldson Run, Virginia are subject to Arlington County regulations, which generally allow STRs but with significant restrictions. As of 2023, Arlington County requires STR operators to obtain a use permit and business license, limits rentals to no more than 14 consecutive days, and restricts the total number of rental days per year. The county prohibits STRs in certain zoning districts and requires hosts to be present during rentals in some cases. Donaldson Run, being a primarily residential neighborhood in Arlington County, falls under these county-wide regulations, meaning STRs are technically legal but heavily regulated. Recent changes in 2022-2023 have tightened enforcement and increased penalties for non-compliance, with the county conducting more frequent inspections and requiring detailed reporting from STR operators. Property owners must also comply with safety requirements, parking restrictions, and noise ordinances, and violations can result in permit revocation and fines up to $10,000.

The best areas for Airbnb investment near Donaldson Run, Virginia include Arlington's Rosslyn-Ballston Corridor, particularly around Clarendon and Ballston neighborhoods, which attract business travelers due to proximity to major corporations like Booz Allen Hamilton and government contractors, plus tourists visiting nearby Washington DC attractions. The Courthouse area offers strong potential with its mix of business hotels and residential properties, benefiting from Pentagon and federal agency proximity. Old Town Alexandria, about 15 minutes south, remains highly attractive for its historic charm, waterfront dining, and tourist appeal, drawing visitors year-round for events like the Alexandria Film Festival and holiday markets. The Crystal City area, recently rebranded as National Landing, has seen increased demand since Amazon's HQ2 announcement in 2018, creating opportunities for both business and leisure travelers. Georgetown's nearby Virginia suburbs, particularly areas along the Potomac, offer premium rental potential for visitors seeking luxury accommodations near high-end shopping and dining, while maintaining easy Metro access to downtown DC attractions like the Smithsonian museums and Capitol Hill.

Airbnb properties in Donaldson Run, Virginia are subject to multiple lodging taxes including Virginia's state transient occupancy tax of 5.3% and Arlington County's local transient occupancy tax of 7.5%, totaling approximately 12.8% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Virginia around 2019. Airbnb remits the collected taxes directly to the Virginia Department of Taxation and Arlington County on behalf of hosts on a monthly basis, though individual hosts remain responsible for registering with local tax authorities and ensuring compliance. Properties generating less than $1,000 in annual rental income may be exempt from certain local tax requirements, and stays of 30 days or longer are generally exempt from transient occupancy taxes but may be subject to regular sales tax instead.

Starting an Airbnb in Donaldson Run, Virginia requires significant upfront investment with property purchase being the largest expense at approximately $850,000 for a median-priced home in this affluent Arlington County neighborhood. Furnishing costs typically range $15,000-25,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and West Elm. Initial setup expenses include professional photography ($300-500), listing optimization, and welcome amenities totaling around $2,000. Arlington County requires a transient occupancy tax registration and business license costing approximately $150-300, while HOA approval may be needed in this area. Insurance premiums increase by $1,500-3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Monthly utilities average $200-350 including electricity, gas, water, internet, and cable. First six months operating costs encompass Airbnb service fees (3% host fee), cleaning services ($75-125 per turnover), maintenance reserves, supplies, and marketing totaling approximately $8,000-12,000. The total startup investment ranges from $875,000-890,000, making Donaldson Run a premium market requiring substantial capital but offering strong rental potential due to proximity to Washington DC and Reagan National Airport.

Airbnb properties in Donaldson Run, Virginia, typically generate annual revenues of $35,000-$55,000 for well-positioned units, with average daily rates ranging from $120-$180 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-$50 per turnover), property management (15-25% of revenue), utilities ($150-$250 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $3,000-$5,000 yearly. Net profit margins typically range from 15-25% for owner-operated properties, with successful hosts in the area achieving occupancy rates of 65-75% annually. Key success factors include proximity to Arlington's business districts and Washington DC (driving higher weekday demand), professional photography, responsive guest communication, and competitive pricing strategies that account for seasonal fluctuations. Properties within walking distance of Metro stations or featuring parking consistently outperform others, with some hosts reporting 20-30% higher revenues. A typical 2-bedroom townhouse in the area might generate $48,000 annually while incurring $22,000 in expenses, yielding approximately $26,000 in net profit, representing a 54% profit margin before taxes and depreciation.

Based on Donaldson Run, Virginia market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this Arlington County submarket, given proximity to Washington DC and Reagan National Airport, command average daily rates of $120-180 with occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months after accounting for setup costs, furnishing, and marketing expenses. Cap rates in the area average 5-7% for short-term rental properties, with gross rental yields reaching 10-14% for well-positioned units near Metro access points. Cash flow positive scenarios typically emerge by month 12-18, assuming 20-25% down payment financing and effective property management, with break-even occupancy rates around 45-50% in this premium Northern Virginia location.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Donaldson Run, Virginia. Local real estate agents in the Arlington area who focus on investment properties include Keller Williams Arlington and RE/MAX Allegiance, with agents like those at Long & Foster Real Estate also having expertise in the Northern Virginia market for Airbnb investments. National services that can assist include Mashvisor for property analytics, AirDNA for market data analysis, and Awning for full-service Airbnb investment management. RedAwning and Vacasa provide property management services that can help investors maximize returns on Airbnb properties in the area. Local property management companies such as Nest DC and Arlington Property Management Group offer services tailored to short-term rental investors. Additionally, platforms like Roofstock and BiggerPockets connect investors with Airbnb-suitable properties and provide market insights for the Donaldson Run area, while companies like AvantStay focus on premium short-term rental investments in high-demand suburban markets like Northern Virginia.