Covington Ranks in Top 25 Nationally for "Rentrepreneurs"
Several local municipalities are grappling with how to regulate the burgeoning short-term rentals that are popping up thanks to the popularity of online sites like AirbnB.
Some have banned them outright, and others have welcomed them.
In Covington, Airbnb rentals are permitted - and now, the city is being recognized as one of the best cities for "rentrepreneurs" in the nation.
The website iProperty Management ranked the top 100 cities for what they call "rentrepreneurs", or people who make money on vacation rentals, and where the highest return on investment is found. By the company's citeria, to be considered a vacation city, a city needed to have at least ten full-time rentals on Airbnb (meaning that the units are available for rent 75 percent of the year with no more than 10 blocked dates each month). The company narrowed the listings down to properties with at least twenty Airbnb bookings in the past twelve months.
iProperty Management used data on median sales prices and the costs of homeownership for the cities to estimate the expenses that are incurred by "vacation property" owners, such as utilities, insurance, taxes, and interest rates for mortgages.
The top city was South Bend, Indiana, with an 86.25 percent return on investment, while cities like Detroit and Green Bay also filled out the top ten.
Covington came in at number 25, with a 25.24 percent return on investment, according to the analysis. No other city in Kentucky was ranked on the list. Cincinnati ranked 48 with 20.25 percent return on investment.
See the full report here.