Is Georgetown, Kentucky Good for Airbnb Investment?

To start an Airbnb in Georgetown, Kentucky, begin by researching local zoning laws and regulations through the Georgetown Planning and Zoning Commission, as Scott County and Georgetown may have specific short-term rental ordinances that require registration or permits. Contact Georgetown City Hall at 502-863-7850 to inquire about business licenses, occupancy permits, and any required inspections. Find a suitable property by searching MLS listings, working with local realtors like Coldwell Banker McMahan or RE/MAX, focusing on areas near Georgetown College or downtown for higher demand. Ensure the property meets Kentucky fire safety codes and obtain necessary permits from the Georgetown Fire Department. Furnish the space with quality furniture from retailers like Ashley HomeStore in Lexington (30 minutes away) or order online, including essentials like linens, kitchen supplies, WiFi, and safety equipment like smoke detectors and fire extinguishers. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to Georgetown College, Toyota Motor Manufacturing, and Keeneland Race Course. Set competitive pricing by researching similar properties in the area, typically ranging $75-150 per night depending on size and amenities. Manage bookings through property management software like Hostfully or hire local cleaning services such as Merry Maids of Lexington, establish check-in procedures with keyless entry systems, and maintain responsive communication with guests while ensuring compliance with Kentucky tax requirements including 6% sales tax and any local occupancy taxes.

To identify profitable short-term rental properties in Georgetown, Kentucky, focus on locations within 2-3 miles of Georgetown College and Toyota Motor Manufacturing Kentucky, as these drive consistent demand from visiting families, business travelers, and contractors. Target properties near downtown Georgetown's historic district, particularly around the courthouse square and Main Street corridor, which attract tourists interested in the Kentucky Bourbon Trail and horse country experiences. Look for 2-4 bedroom homes built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these appeal to families visiting the college or exploring nearby Lexington attractions. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for nightly rates between $80-150 depending on size and location, with higher rates during University of Kentucky events and Kentucky Derby season. Research competition through Airbnb and VRBO searches within a 5-mile radius, noting occupancy patterns and guest reviews to identify service gaps. Utilize the Scott County Property Valuation Administrator's website for property records, partner with local real estate agents familiar with STR regulations, and monitor Georgetown's municipal codes as Kentucky allows STRs but local ordinances vary. Consider properties near the Georgetown-Scott County Tourism Commission's promoted attractions and ensure compliance with any HOA restrictions, as Georgetown's proximity to Lexington (30 minutes) and Louisville (60 minutes) creates spillover demand from these larger markets.

To obtain an Airbnb/STR permit in Georgetown, Kentucky, you must first contact the Georgetown Planning and Zoning Department at City Hall located at 100 Court Street to determine if short-term rentals are permitted in your specific zoning district, as Georgetown requires conditional use permits for STRs in most residential areas. Submit an application to the Planning Commission including a completed conditional use permit application, site plan showing parking arrangements, proof of property ownership or authorization letter from owner, liability insurance documentation showing minimum $1 million coverage, and a floor plan indicating maximum occupancy. Required documents also include a business license application through the City Clerk's office, Kentucky sales tax permit from the Department of Revenue, and compliance with fire safety codes verified by the Georgetown Fire Department. Application fees typically range from $200-400 for the conditional use permit plus $50-75 for the business license, with additional inspection fees of approximately $100-150. The timeline generally spans 45-60 days including a public hearing before the Planning Commission, administrative review period, and final approval processing. Georgetown-specific requirements include maintaining off-street parking for each rental unit, limiting occupancy to 2 persons per bedroom plus 2 additional guests, providing 24/7 contact information to neighbors, and ensuring compliance with noise ordinances between 10 PM and 7 AM, with properties subject to annual renewal and periodic inspections.

Short-term rentals (STRs) are legal in Georgetown, Kentucky, but operate under specific regulations established by the city. Georgetown requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential districts while prohibiting them in some neighborhoods to preserve residential character. The city has implemented occupancy limits, parking requirements, and noise ordinances that STR properties must follow, with violations subject to fines and potential license revocation. Recent changes around 2020-2022 included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental, typically defined as rentals of less than 30 days. Properties must meet safety standards including smoke detectors and emergency exits, and operators are required to provide contact information to neighbors and city officials for complaint resolution. Georgetown's approach reflects a balance between allowing the economic benefits of short-term rentals while addressing community concerns about neighborhood disruption and housing availability.

The most promising Airbnb investment areas in Georgetown, Kentucky include the Historic Downtown District around Main Street, which attracts visitors to the Scott County Museum, antique shops, and local festivals like the Georgetown Christmas Parade. The Toyota Motor Manufacturing area on Cherry Blossom Way presents excellent opportunities for business traveler accommodations, as the facility employs over 8,000 workers and frequently hosts corporate visitors and contractors. The Georgetown College vicinity near East College Street offers potential for parent visits, alumni events, and academic conferences throughout the year. The Elkhorn Creek corridor and surrounding residential areas like Ironworks Pike provide scenic locations appealing to tourists exploring Kentucky's Bluegrass region and bourbon trail extensions. Properties near the Georgetown-Scott County Sports Complex on Lexington Road benefit from youth sports tournaments and regional athletic events that bring families requiring short-term lodging. The Delaplain Road commercial corridor offers convenient access to shopping and dining while maintaining proximity to both Toyota and the college, making it attractive for various visitor types seeking modern amenities.

Georgetown, Kentucky imposes a transient room tax of 3% on short-term rental accommodations including Airbnbs, which applies to stays of less than 30 consecutive days. This tax is collected by the host at the time of booking or check-in and must be remitted to the Georgetown Tourism Commission on a monthly basis by the 20th of the following month using forms available from the city clerk's office. Additionally, Kentucky state sales tax of 6% applies to lodging accommodations, which Airbnb typically collects and remits directly to the Kentucky Department of Revenue on behalf of hosts through their automated tax collection system implemented in 2018. Scott County may impose an additional local occupancy tax of up to 1%, though this varies by specific location within the county. Exemptions generally include stays of 30 days or longer, accommodations provided to permanent residents, and rentals to certain government employees on official business. Hosts must register with the city to obtain a transient room tax license before operating and maintain records of all transactions for at least three years, with penalties for late remittance typically ranging from 10-25% of the tax owed plus interest.

To start an Airbnb in Georgetown, Kentucky, expect total costs around $180,000-$220,000. Property purchase represents the largest expense at approximately $150,000-$180,000 based on median home prices in the area as of 2023. Furnishing costs typically range $8,000-$15,000 for a complete 2-3 bedroom setup including furniture, bedding, kitchenware, and décor. Initial setup costs including professional photography, listing creation, and basic renovations average $2,000-$4,000. Permits and fees in Scott County include business license ($50-$100), potential zoning permits ($200-$500), and safety inspections ($100-$300). Insurance costs run $1,200-$2,400 annually for short-term rental coverage. Utilities including electricity, water, gas, internet, and cable average $200-$350 monthly or $1,200-$2,100 for six months. First six months operating costs encompass cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400 monthly), Airbnb platform fees (3% host fee), marketing expenses ($100-$300 monthly), and miscellaneous supplies ($50-$100 monthly), totaling approximately $3,000-$6,000 for the initial six-month period.

Airbnb properties in Georgetown, Kentucky typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by targeting visitors to nearby Toyota Manufacturing, Kentucky Horse Park events, and Lexington overflow demand. Properties within 10 miles of Toyota's Georgetown plant perform particularly well due to corporate housing demand, with some hosts reporting $2,500-$4,000 monthly profits on 3-bedroom homes purchased for $180,000-$250,000. Success factors include professional photography, responsive communication, proximity to major employers or attractions, and competitive pricing that undercuts hotels in Lexington while offering more space and amenities.

Airbnb investments in Georgetown, Kentucky typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in Georgetown, located near Toyota's manufacturing facility and close to Lexington, benefit from consistent business traveler demand and weekend tourism, with average daily rates of $85-120 depending on property size and amenities. Initial investment recovery and profitability generally occurs within 18-24 months, assuming proper property management and 65-75% occupancy rates throughout the year. The market shows particular strength during Kentucky Derby season, University of Kentucky events, and summer months when tourism peaks, with some investors reporting cash-on-cash returns as high as 12-15% on well-positioned properties near downtown Georgetown or with unique amenities like pools or scenic views.

STRSearch is a national platform that helps investors identify profitable short-term rental properties in Georgetown, Kentucky, providing market analysis and property recommendations. Local real estate agents specializing in investment properties include Coldwell Banker McMahan and RE/MAX Bluegrass Realty, both serving the Georgetown area with agents experienced in rental property investments. Awning offers nationwide Airbnb property management and investment guidance services that cover Georgetown markets. BiggerPockets connects investors with local professionals and provides market data for Kentucky investment properties. Mashvisor provides rental property analytics and investment tools for Georgetown and surrounding Scott County areas. Local property management companies like Bluegrass Property Management can assist with identifying investment opportunities while offering ongoing management services. RedAwning specializes in vacation rental property acquisition and management across Kentucky markets including Georgetown. AirDNA provides short-term rental market data and performance analytics for Georgetown to help investors make informed purchasing decisions. Local mortgage brokers and lenders familiar with investment properties include Central Bank & Trust and Stock Yards Bank, both serving the Georgetown market with investor-friendly financing options.