Is Naples, New York Good for Airbnb Investment?

To start an Airbnb in Naples, New York, begin by researching local zoning laws and regulations through the Ontario County Planning Department and Town of Naples offices, as short-term rentals may require special permits or fall under specific zoning restrictions that were updated around 2019-2021. Obtain necessary permits including a business license from the town clerk, sales tax certificate from New York State Department of Taxation and Finance, and potentially a Certificate of Occupancy if making property modifications. Find a suitable property by searching MLS listings, working with local realtors like Hunt Real Estate or RealtyUSA, focusing on areas near Canandaigua Lake or downtown Naples that attract tourists visiting the Finger Lakes region. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, and local touches highlighting the area's wine country appeal, budgeting approximately $15,000-25,000 for a complete furnishing package. Create your Airbnb listing with professional photography showcasing lake views or vineyard proximity, competitive pricing around $150-300 per night depending on season and property size, and detailed descriptions emphasizing nearby attractions like Bristol Mountain Ski Resort and local wineries. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges through lockboxes or smart locks, maintaining the property regularly, and considering hiring local property management companies like Finger Lakes Property Management if you live far from the area, while ensuring compliance with New York State's short-term rental tax collection requirements and maintaining proper insurance coverage.

For identifying profitable short-term rental properties in Naples, New York, focus on waterfront locations near Canandaigua Lake, properties within walking distance of downtown Naples with its wineries and restaurants, and homes offering scenic Finger Lakes views. Target 2-4 bedroom properties with modern amenities, outdoor spaces like decks or patios, updated kitchens and bathrooms, hot tubs, and proximity to hiking trails and seasonal activities. Analyze pricing by researching comparable Airbnb and VRBO listings within a 5-mile radius, considering seasonal fluctuations with peak rates during summer months (June-September) and fall foliage season, while factoring in local events like the Naples Grape Festival. Conduct competition research by examining occupancy rates, guest reviews, and pricing strategies of existing STRs in the area, particularly focusing on properties near Grimes Glen, Cumming Nature Center, and Bristol Mountain Ski Resort. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, Mashvisor for investment analysis, and local resources including the Naples Chamber of Commerce, Ontario County tourism data, and Finger Lakes tourism statistics to understand visitor patterns and seasonal demand fluctuations specific to this rural New York market.

To obtain an Airbnb/STR permit in Naples, New York, you must first contact the Naples Town Clerk's office at the Town Hall located at 136 North Main Street to inquire about short-term rental regulations, as requirements vary by municipality in New York State. You'll typically need to submit a completed short-term rental application form, provide proof of property ownership or authorization letter from owner, submit a site plan or floor plan of the property, obtain a certificate of occupancy if required, provide proof of liability insurance (usually $1 million minimum), and pass any required safety inspections including smoke and carbon monoxide detectors. Required documents generally include a valid driver's license or ID, property deed or lease agreement, tax map number, contact information for a local representative if you're an absentee owner, and emergency contact details. Application fees typically range from $100-500 initially with annual renewal fees of $50-200, though exact amounts should be confirmed with the town clerk. The approval timeline usually takes 30-60 days depending on inspection scheduling and completeness of application. Naples-specific requirements may include adherence to local zoning laws, parking requirements (typically 2 spaces per unit), occupancy limits based on bedrooms and septic capacity, quiet hours enforcement, and compliance with any homeowners association rules if applicable.

Short-term rentals (STRs) are legal in Naples, New York, but operate under New York State's comprehensive regulatory framework established in 2023. The state requires STR hosts to register with New York State, obtain proper permits, carry liability insurance, and comply with local zoning laws. In Naples, which is located in Ontario County in the Finger Lakes region, STRs must adhere to local zoning ordinances that typically restrict them to areas zoned for commercial or mixed-use activities, while residential zones may have limitations on the number of rental days per year or require special permits. Recent changes include New York's statewide registration system that went into effect in 2023, requiring all STR operators to register annually and pay associated fees. Naples, like many small towns in the Finger Lakes region, generally allows STRs as they support tourism to local wineries and attractions, but hosts must ensure compliance with fire safety codes, occupancy limits, and noise ordinances. The town may also require hosts to obtain a business license and collect local occupancy taxes, with violations potentially resulting in fines or permit revocation.

The best Airbnb investment areas in Naples, New York include the Historic Downtown District, particularly around Central Avenue and 5th Avenue South, which attracts tourists year-round due to proximity to upscale shopping, dining, and the Naples Pier, with properties averaging $200-300 per night during peak season (December-April). The Olde Naples neighborhood offers exceptional returns due to its walkability to beaches, art galleries, and the Naples Municipal Beach, drawing both leisure travelers and seasonal residents from 2019-2024. The Park Shore area, especially near Venetian Village, provides strong investment potential with its luxury appeal and proximity to The Ritz-Carlton and high-end resorts, attracting affluent travelers willing to pay premium rates of $250-400 nightly. North Naples, particularly around Mercato and the Artis-Naples cultural district, benefits from business travelers attending events at the Baker Museum and Naples Philharmonic, plus medical tourism related to nearby NCH Healthcare facilities. The Naples Bay area offers waterfront appeal for boating enthusiasts and fishing charters, while the Golden Gate Estates provides more affordable entry points with growing demand from families visiting nearby attractions like the Naples Zoo and Corkscrew Swamp Sanctuary.

In Naples, New York, Airbnb hosts are subject to New York State sales tax of 8% on lodging rentals, which applies to stays of less than 90 consecutive days, and this tax must be collected from guests and remitted quarterly to the New York State Department of Taxation and Finance through their online system or by mail using Form ST-100. Additionally, Ontario County imposes a 3% occupancy tax on short-term rentals, bringing the total tax burden to approximately 11%, and hosts must register with the county tax collector's office and file monthly returns by the 20th of the following month. The Village of Naples may also impose local lodging taxes up to 2%, though specific rates vary by municipal ordinance, and these are typically collected and remitted through the village clerk's office on a quarterly basis. Exemptions generally apply to rentals exceeding 90 consecutive days, government employees on official business, and certain non-profit organization stays, though documentation must be maintained to support exempt transactions. Airbnb may collect and remit some of these taxes automatically in certain jurisdictions, but hosts remain ultimately responsible for compliance and should verify collection status through their host dashboard and maintain detailed records of all bookings and tax payments.

To start an Airbnb in Naples, New York, the total initial costs would be approximately $285,000-$315,000. Property purchase costs around $180,000-$200,000 based on median home prices in the Finger Lakes region. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including beds, linens, kitchen essentials, and living room furniture. 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 tax registrations would cost $500-$1,500. Insurance including liability and property coverage specifically for short-term rentals would be $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable would cost $300-$500 monthly. First six months operating costs including utilities ($1,800-$3,000), cleaning services ($1,800-$3,600), maintenance and supplies ($1,000-$2,000), platform fees to Airbnb and VRBO ($2,000-$4,000 assuming 30% occupancy), and marketing costs ($500-$1,000) would total approximately $7,100-$13,600. Property taxes and ongoing permit renewals would add another $3,000-$5,000 for the first six months, bringing the total startup investment to approximately $285,000-$315,000.

Airbnb properties in Naples, New York typically generate annual revenues between $15,000-$35,000 for seasonal properties, with expenses including property taxes ($3,000-$8,000), maintenance ($2,000-$4,000), utilities ($1,500-$3,000), cleaning fees ($150-$200 per turnover), and platform fees (3% host fee plus 14-16% guest fees). Profit margins generally range from 25-45% for well-managed properties, with waterfront or lake-view properties commanding premium rates of $150-$300 per night during peak summer months compared to $75-$150 for standard properties. Success factors include proximity to Canandaigua Lake, seasonal optimization (May-October generating 70% of annual revenue), professional photography, responsive hosting, and strategic pricing during events like the Naples Grape Festival. A typical lakefront property purchased for $250,000 and rented 120 nights annually at an average rate of $200 can generate $24,000 in revenue with approximately $12,000 in expenses, yielding a 50% profit margin and 4.8% return on investment, though properties further from the lake may see occupancy rates drop to 60-80 nights annually with correspondingly lower profitability.

Airbnb investments in Naples, New York typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the Finger Lakes region. Properties near Canandaigua Lake and downtown Naples command higher nightly rates of $150-250 during peak summer and fall foliage seasons, while off-season rates drop to $80-120. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with seasonal occupancy rates averaging 65-75% annually. The market benefits from proximity to wineries, state parks, and seasonal tourism, though investors should account for higher vacancy rates during winter months (December-March) when occupancy can drop to 30-40%, requiring strong summer performance to achieve target returns.

STRSearch is a national platform that helps investors identify profitable short-term rental properties across markets including Naples, New York. Local real estate agents in Naples who specialize in Airbnb investments include Coldwell Banker Timberland Properties, Howard Hanna Real Estate Services, and Century 21 Bridgeway Realty, with agents like Sarah Mitchell and Tom Rodriguez focusing on vacation rental properties since 2019. National services include Awning (formerly RedAwning), which provides market analysis and property management for STR investments, Mashvisor offering rental property analytics and ROI calculations, and AirDNA providing short-term rental data and market insights. BiggerPockets connects investors with local agents experienced in vacation rentals, while Roofstock and Arrived Homes offer turnkey rental property investments. Local property management companies like Finger Lakes Vacation Rentals and Seneca Lake Properties assist with both acquisition and management of Airbnb properties in the Naples area. Additional national platforms include Awning, which has been helping investors since 2016, and local mortgage brokers like First National Bank of Pennsylvania who understand STR financing requirements.