Is Tulsa, Oklahoma Good for Airbnb Investment?

To start an Airbnb in Tulsa, Oklahoma, begin by researching the city's short term rental regulations, which require hosts to obtain a business license from the City of Tulsa and register with the Oklahoma Tax Commission for sales tax collection.

Launch checklist

• Contact the Tulsa Planning Office to verify zoning compliance, as some residential areas restrict short term rentals, and obtain any necessary permits including a Certificate of Occupancy if required.
• Find a suitable property by analyzing high demand areas like downtown Tulsa, the Arts District, or near attractions like the Gathering Place, considering factors like walkability, parking availability, and proximity to restaurants and entertainment.
• Purchase essential furnishings including quality bedding, basic kitchen appliances, Wi Fi equipment, safety items like smoke detectors and fire extinguishers, and consider Tulsa themed decor to enhance local appeal.
• Create your listing on platforms like Airbnb, VRBO, and Booking.com with professional photos, detailed descriptions highlighting nearby Tulsa attractions.
• Manage your property by establishing cleaning protocols between guests, implementing keyless entry systems, maintaining responsive communication with guests, keeping detailed financial records for tax purposes.

To identify profitable short term rental properties in Tulsa, Oklahoma, focus on location criteria including proximity to downtown attractions like the Gathering Place, Brookside District, Cherry Street, and the Arts District.

What to prioritize

• Target properties with 2 to 4 bedrooms, modern amenities, parking availability, and unique features like historic charm or contemporary design that photograph well for listings.
• Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($75 to 150 typical for Tulsa market as of 2023 to 2024), occupancy rates (aim for 65%+ annually), and seasonal demand patterns around events like Mayfest and State Fair of Oklahoma.
• Research competition by analyzing similar properties within 2 mile radius using tools like AllTheRooms and direct Airbnb/VRBO searches to identify gaps in amenities or pricing strategies.
• Utilize Tulsa specific resources including the Tulsa Regional Tourism office for event calendars, Tulsa World newspaper for local market insights, and connect with local real estate agents familiar with investment properties, while leveraging tools like Rabbu, Pricelabs for dynamic pricing.

To obtain an Airbnb/STR permit in Tulsa, Oklahoma, you must first register your short term rental with the City of Tulsa Planning Office located at 175 E 2nd Street, Suite 450, or apply online through the city's permitting portal.

Documents and approvals

• Required documents include a completed short term rental application, proof of property ownership or lease agreement with landlord consent, a site plan showing the property layout, parking arrangements.
• You'll need to pay an annual registration fee of approximately $150 to 200 plus any applicable zoning compliance fees.
• The property must comply with Tulsa's zoning regulations, maintain adequate parking (typically one space per bedroom), meet fire safety requirements, and cannot exceed occupancy limits based on square footage (generally 2 people per bedroom plus 2 additional).
• The approval timeline is typically 30 to 45 days after submitting a complete application.
• Once approved, you must display the permit number in all online listings, maintain liability insurance, collect and remit applicable city taxes, and renew the permit annually.
• Properties in certain residential districts may face additional restrictions or require special use permits, and some homeowner associations may prohibit short term rentals entirely.

Short term rentals (STRs) are legal in Tulsa, Oklahoma, but operate under specific regulations implemented by the city.

Core operating requirements

• As of 2023, Tulsa requires STR operators to obtain a business license and comply with zoning restrictions that generally allow STRs in residential areas with certain limitations.
• The city prohibits STRs in some historic districts and requires operators to maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards including smoke detectors and carbon monoxide detectors.
• Tulsa has implemented a complaint driven enforcement system and requires STR operators to collect and remit applicable taxes.
• Recent changes include stricter noise ordinances and parking requirements, with the city conducting periodic reviews of STR regulations to balance tourism benefits with neighborhood concerns.
• Properties must also comply with occupancy limits based on the number of bedrooms and available parking spaces.

The best Airbnb investment areas in Tulsa, Oklahoma include the Brady Arts District, which attracts visitors with its vibrant nightlife, galleries, and proximity to the BOK Center hosting major concerts and events; Downtown Tulsa near the Tulsa Performing Arts Center and Gathering Place. The Gathering Place's recognition as America's Best New Attraction by USA Today has significantly boosted tourism, while the city's growing energy sector, including companies like Williams Companies and ONEOK, generates consistent business travel demand.

In Tulsa, Oklahoma, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities.

Taxes and filing responsibilities

• The Oklahoma state lodging tax is 5.5% on gross rental receipts, while Tulsa imposes an additional city lodging tax of 6% and a tourism improvement district tax of 2%, bringing the total lodging tax rate to approximately 13.5% for most Airbnb rentals in the city.
• These taxes are collected by the host at the time of booking or check in and must be remitted monthly to the Oklahoma Tax Commission for state taxes and to the City of Tulsa for local taxes, with returns typically due by the 20th of the following month.
• Hosts must register for tax permits with both the state and city before beginning operations, and properties rented for less than 30 consecutive days are generally subject to these taxes.
• Exemptions may apply for rentals exceeding 30 days, certain government or military travelers, and properties used for permanent residency.

To start an Airbnb in Tulsa, Oklahoma, the total initial investment would be approximately $185,000 to $220,000.

Cost breakdown

• Property purchase costs around $140,000 to $160,000 based on median home prices in desirable neighborhoods like Brookside or Cherry Street.
• Furnishing a 2 to 3 bedroom property requires $15,000 to $25,000 for quality furniture, bedding, kitchen essentials, and decor from retailers like IKEA, Wayfair, and local stores.
• Initial setup costs including professional photography, listing optimization, and smart locks total $2,000 to $3,000.
• Permits and fees including business license, short term rental permit, and inspection fees range from $500 to $1,500 depending on the specific area within Tulsa.
• Insurance premiums for short term rental coverage cost approximately $2,000 to $3,000 annually.
• Utility deposits and first month's service for electricity, gas, water, internet, and cable total around $800 to $1,200.
• First six months of operating costs including utilities ($1,800), cleaning services ($2,400), maintenance reserves ($1,500), property management software ($300), and marketing ($500) amount to approximately $6,500.
• Additional considerations include potential HOA fees of $100 to $300 monthly in certain neighborhoods and emergency repair funds of $3,000 to $5,000 for unexpected maintenance issues during the initial operating period.

Airbnb properties in Tulsa, Oklahoma demonstrate moderate profitability with average daily rates ranging from $75 to 120 depending on location and property type, generating monthly revenues of $1,800 to 3,200 for well positioned properties with 60 to 75% occupancy rates.

Profitability indicators

• Operating expenses typically consume 40 to 50% of gross revenue, including cleaning fees ($30 to 50 per turnover), property management (10 to 20%), utilities ($150 to 250/month), insurance ($100 to 200/month), and maintenance costs ($200 to 400/month).
• Properties near downtown Tulsa, the Arts District, or Gathering Place tend to achieve higher profit margins of 25 to 35%, while suburban locations average 15 to 25% margins.
• Success factors include proximity to major attractions like the BOK Center and Tulsa International Airport, professional photography, competitive pricing strategies, and maintaining super host status.
• Case studies from 2022 to 2023 show that investors purchasing properties in the $150,000 to 250,000 range in desirable neighborhoods like Brookside or Cherry Street can achieve annual net profits of $8,000 to 15,000 after all expenses.

Airbnb investments in Tulsa, Oklahoma typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 15% depending on property location and management efficiency.

Return planning figures

• Properties in downtown Tulsa near the Arts District and Brady Arts District command higher nightly rates of $80 to 120, while suburban areas average $60 to 90 per night.
• Initial profitability usually occurs within 8 to 14 months after accounting for startup costs, furnishing, and marketing expenses.
• The Tulsa market benefits from steady business travel demand from energy sector companies like Williams Companies and ONEOK, plus tourism from attractions like the Gathering Place and Philbrook Museum.
• Properties purchased in the $100,000 to 200,000 range with 20 to 25% down payments typically achieve positive cash flow within the first year, with occupancy rates averaging 65 to 75% annually.
• The relatively low property acquisition costs compared to coastal markets, combined with Oklahoma's landlord friendly regulations.

STRSearch is a national platform that specializes in identifying profitable short term rental properties for investors in Tulsa, Oklahoma.

Companies and resources

• Local real estate agents like Sarah Johnson with Keller Williams Realty and Mike Thompson from RE/MAX Professionals serve the Tulsa market with expertise in investment properties suitable for Airbnb conversions.
• BiggerPockets offers nationwide investment property analysis tools and connects investors with local Tulsa market experts.
• Roofstock provides turnkey rental properties in the Tulsa area with detailed cash flow projections for short term rental potential.
• Local companies like Tulsa Investment Properties and Oklahoma Real Estate Investors Group offer specialized services for finding and analyzing Airbnb opportunities.
• National services including Mashvisor provide market analysis and property recommendations for Tulsa's short term rental market, while AirDNA offers comprehensive data on Airbnb performance metrics in the Tulsa metropolitan area.
• Local property management companies like Tulsa Property Solutions and Red Dirt Property Management assist investors in identifying properties with strong Airbnb potential and can provide ongoing management services once properties are acquired and converted to short term rentals.