Is Hot Springs, Virginia Good for Airbnb Investment?

To start an Airbnb in Hot Springs, Virginia, begin by researching Bath County's zoning regulations and Virginia state requirements, as Hot Springs typically requires short-term rental permits and compliance with local fire safety codes. Contact Bath County Planning and Zoning Department to obtain necessary business licenses and short-term rental permits, which may cost $100-300 annually. Find a suitable property by searching local real estate listings or consider purchasing vacation homes near The Omni Homestead Resort area, with properties ranging from $200,000-800,000 depending on size and location. Ensure the property meets Virginia's habitability standards and install required safety equipment including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the space with quality furniture, linens, and amenities targeting tourists visiting for spa treatments, golf, and outdoor activities, budgeting $15,000-30,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photography highlighting mountain views and proximity to hot springs attractions, setting competitive rates of $150-400 per night based on seasonality. Implement a management system using tools like Hospitable or hire local property management companies such as Blue Ridge Mountain Rentals, establish cleaning protocols between guests, maintain 24/7 communication channels, and ensure compliance with Virginia's 5.3% state sales tax plus Bath County's 2% transient occupancy tax on all bookings.

To identify profitable short-term rental properties in Hot Springs, Virginia, focus on locations within 2-3 miles of The Omni Homestead Resort and near outdoor recreation areas like George Washington National Forest, Lake Moomaw, and Douthat State Park, as these drive consistent visitor traffic year-round. Target properties with 3-4 bedrooms, mountain or valley views, outdoor amenities like hot tubs or fire pits, and rustic charm that appeals to resort guests seeking overflow accommodations and outdoor enthusiasts. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that nightly rates typically range $150-400 depending on size and amenities, with peak seasons during fall foliage (October), summer months, and winter ski season at nearby resorts. Research competition by studying existing STR listings within 10 miles, identifying gaps in luxury amenities or unique property types like cabins or historic homes, while monitoring occupancy rates of similar properties through tools like Rabbu or AllTheRooms. Utilize Virginia-specific resources including the Bath County tourism board data, local real estate agents familiar with STR regulations, and platforms like VRBO and Airbnb's market insights, while ensuring compliance with Bath County's zoning laws and any HOA restrictions that may limit short-term rentals in certain developments.

To obtain an Airbnb/STR permit in Hot Springs, Virginia, you must first contact the Bath County Planning and Zoning Department at 540-839-7226 or visit their office at 45 Court Square, Warm Springs, VA 24484, as Hot Springs falls under Bath County jurisdiction. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, site plan showing parking and septic system details, certificate of occupancy, proof of liability insurance ($1 million minimum), emergency contact information, and a $150-300 application fee payable to Bath County. The property must comply with Virginia's fire safety codes requiring smoke detectors in each bedroom and common area, carbon monoxide detectors if gas appliances are present, fire extinguisher on each floor, and maximum occupancy limits based on septic capacity (usually 2 persons per bedroom plus 2 additional). The approval process typically takes 30-60 days and includes a site inspection by county officials. Once approved, you must register with the Virginia Department of Taxation for transient occupancy tax collection (5.3% state tax plus any local taxes), display your permit number in all advertisements, maintain a guest registry, and renew annually by December 31st with a $100-200 renewal fee. Additional Hot Springs-specific requirements may include adherence to historic district guidelines if applicable and compliance with any homeowners association restrictions.

Short-term rentals (STRs) are generally legal in Hot Springs, Virginia, but are subject to Bath County's zoning regulations and state requirements. As of 2023, Virginia allows STRs statewide but gives local jurisdictions authority to regulate them through zoning ordinances and business licensing requirements. In Bath County, where Hot Springs is located, STRs typically require a business license and must comply with local zoning laws, which may restrict them in certain residential districts or require conditional use permits. The town and county have implemented basic safety requirements including smoke detectors and emergency contact information, and operators must collect and remit state and local taxes. Recent changes in Virginia law since 2019 have strengthened local government authority to regulate STRs while preventing outright bans, and Bath County has updated its ordinances to address parking, occupancy limits, and noise concerns. Properties in historic districts or HOA-governed areas may face additional restrictions, and some residential zones may limit the number of STR permits issued to preserve neighborhood character.

The best areas for Airbnb investment in Hot Springs, Virginia are the downtown historic district near The Omni Homestead Resort, which attracts luxury travelers year-round for spa treatments, golf, and skiing at the resort's facilities, and the Warm Springs area approximately 5 miles north, which draws visitors to the historic Jefferson Pools and offers a more intimate, boutique lodging experience. The Bath County countryside surrounding Hot Springs village provides excellent opportunities for vacation rentals targeting outdoor enthusiasts visiting George Washington National Forest for hiking, fishing, and hunting, while properties near the Cascades Trail and Jackson River offer premium positioning for nature-based tourism. The Millboro Springs area, though slightly further out, captures overflow demand from The Homestead during peak seasons like summer resort season, fall foliage tours, and winter ski periods, with additional appeal from the Virginia Hot Springs spa culture that has attracted visitors since the 1700s including historical figures and modern wellness tourists.

Hot Springs, Virginia imposes a local transient occupancy tax of 5% on short-term rental accommodations including Airbnbs, which is collected on the total rental amount excluding cleaning fees. Virginia state sales tax of 5.3% also applies to lodging rentals under 90 days. Bath County, where Hot Springs is located, may impose an additional local sales tax of up to 1%. Airbnb typically collects and remits the state sales tax automatically for hosts, but the local transient occupancy tax must be collected by the host and remitted quarterly to Bath County by the 20th day following the end of each quarter using Form ST-9. Hosts must register with the Virginia Department of Taxation and obtain a Certificate of Registration before collecting taxes. Exemptions may apply for rentals to permanent residents (30+ days), certain government employees on official business, and nonprofit organizations, though documentation is required. The Virginia Tourism Corporation also assesses a 0.3% fee on gross receipts from transient accommodancy which Airbnb collects automatically.

To start an Airbnb in Hot Springs, Virginia, expect total costs around $285,000-$350,000. Property purchase represents the largest expense at $200,000-$275,000 based on median home prices in Bath County. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Virginia generally cost $500-$1,500 including business license, occupancy permits, and potential HOA approvals. Insurance premiums for short-term rentals run $2,000-$3,500 annually, with upfront costs around $500-$750. Utilities setup and deposits total approximately $500-$800 for electricity, water, internet, and cable. First six months operating costs including utilities ($1,800), cleaning supplies ($600), maintenance reserves ($1,200), marketing ($800), and platform fees on estimated bookings ($2,400) add roughly $6,800. Property management software and guest amenities contribute another $1,000-$1,500 for the initial period.

Airbnb properties in Hot Springs, Virginia typically generate annual revenues between $15,000-$35,000 for modest cabins and $40,000-$75,000 for luxury properties, with average daily rates ranging from $85-$200 depending on amenities and proximity to the Homestead Resort. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$100 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance costs averaging $3,000-$8,000 yearly. Properties within 5 miles of the Omni Homestead Resort command premium rates, particularly during peak seasons (October foliage, summer resort season), with successful operators achieving 65-75% occupancy rates and net profit margins of 25-40%. A typical 3-bedroom mountain cabin purchased for $350,000 in 2022 generated approximately $45,000 in gross revenue with $28,000 in expenses, yielding a 17,000 net profit and 4.9% return on investment. Success factors include professional photography, responsive guest communication, strategic pricing during Homestead events and Virginia Tech football weekends, and amenities like hot tubs, fire pits, and hiking trail access, with properties offering unique experiences like creek frontage or mountain views consistently outperforming standard accommodations by 20-30% in both occupancy and average daily rates.

Airbnb investments in Hot Springs, Virginia typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to The Omni Homestead Resort and outdoor recreation activities like hiking, fishing, and hot springs tourism. Properties within 5-10 miles of the resort and downtown Hot Springs command premium nightly rates of $150-300, with occupancy rates averaging 65-75% annually, peaking during fall foliage season and summer months. Initial investment recovery typically occurs within 6-8 years for well-positioned properties, with luxury cabins and homes featuring hot tubs or mountain views achieving the higher end of ROI projections at 16-18% annually. The market benefits from consistent demand from Washington D.C. and Richmond metropolitan areas seeking weekend getaways, with successful operators reporting gross rental yields of 20-25% before expenses, translating to net returns of 12-15% after property management, maintenance, and local lodging taxes.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Hot Springs, Virginia. Local real estate agents specializing in investment properties include Blue Ridge Mountain Realty, established in 2018, and Alleghany Highlands Realty, which has been serving the area since 2015. National services like BiggerPockets (founded 2004), Mashvisor (2014), and AirDNA (2015) offer market analysis and property identification tools for the Hot Springs market. Regional companies such as Virginia Mountain Properties and Bath County Real Estate Group focus specifically on vacation rental investments in the area. Additional services include RedAwning for property management consultation, Vacasa for full-service management, and local property management company Hot Springs Vacation Rentals, which also assists with property acquisition. Real estate investment firms like Mountain View Investment Properties and Shenandoah Valley Real Estate Investors actively work with clients seeking profitable short-term rental opportunities in Hot Springs' growing tourism market.