The short-term rental landscape has shifted dramatically...

Here's what serious investors need to know about building a profitable vacation rental business in Savannah, Georgia - and why operational excellence matters more than ever.

If you've been paying attention to the short-term rental industry over the past 18 months, you've likely noticed a significant shift in the conversation. The pandemic-era gold rush that sent occupancy rates and revenues soaring has settled into something more nuanced, and frankly, more challenging for operators who aren't prepared.

National occupancy rates have declined from their 2021 peaks, dropping from roughly 56% to around 47% by mid-2024. Supply has outpaced demand in many markets, and the days of listing a property on Airbnb and watching the bookings roll in are firmly behind us. According to industry data, nearly one in four short-term rental hosts has stopped renting at least one property in the past year, either temporarily or permanently.

But here's what that headline misses: Savannah, Georgia remains one of the most compelling vacation rental markets in the Southeast. The question isn't whether short-term rentals can be profitable here, it's whether you have the operational discipline to capture that opportunity.

The Savannah Advantage: Why This Market Still Works

Savannah isn't just surviving the industry correction, consistent operators are thriving. In 2024, the Savannah-Chatham County area welcomed 12.9 million visitors, a 2.3% increase over the previous year. Visitor spending climbed 4.5% year-over-year to $4.1 billion. These aren't the numbers of a market in decline.

What makes Savannah particularly attractive for vacation rental investment is the diversity of its demand drivers. While many markets rely heavily on seasonal leisure travel, Savannah benefits from year-round tourism anchored by its historic district, a robust culinary scene, and increasingly, business and convention travel. The recent $276 million expansion of the Savannah Convention Center, doubling exhibit hall space to 200,000 square feet, signals the city's commitment to capturing more of the corporate travel market.

The numbers tell the story: the average short-term rental in Savannah generates approximately $50,000 in annual revenue, with a median occupancy rate of 67% and an average daily rate (ADR) hovering around $204-215. For properties that are professionally managed with sophisticated pricing strategies, these numbers can be significantly higher.

The New Reality: Why Amateur Operators Are Struggling

Here's where we need to have an honest conversation. The short-term rental industry has matured, and with that maturation has come a clear separation between professional operators and everyone else.

In a recent industry survey, 76% of property managers reported heightened competition in 2024, and 55% cited market saturation as a major concern. Meanwhile, operational costs continue to climb, cleaning fees, maintenance, insurance, and marketing expenses have all increased substantially. For owners still trying to manage properties as a side hustle, the math simply doesn't work anymore.

The operators who are thriving share common characteristics: they use dynamic pricing tools that respond to real-time supply and demand, they maintain rigorous guest vetting processes, they invest in professional photography and listing optimization, and they distribute across multiple booking platforms while building direct booking capabilities. In short, they treat short-term rentals as the hospitality business it actually is.

Navigating Savannah's Regulatory Landscape

Any serious investor in Savannah's short-term rental market needs to understand the local regulatory environment. Unlike some markets with minimal oversight, Savannah has implemented thoughtful regulations designed to balance tourism revenue with neighborhood preservation.

Short-term vacation rentals (STVRs) are permitted within designated overlay districts, including the Downtown, Victorian, and Streetcar local historic districts. Within the Downtown and Victorian districts, non-owner-occupied STVRs in residential areas are subject to a 20% per-ward cap. All wards have already reached this cap, meaning new non-owner-occupied properties may face waitlist status, unless the subject property is already licensed to operate as a non-owner occupied short-term rental. Other opportunities exist in the Unincorporated Chatham County market, where sensible regulation exists, but the barrier to entry is much lower.

For the City of savannah, the application process requires a $400 initial fee with a $250 annual renewal, adjacent property owner notification, and compliance with occupancy limits (generally two adults per bedroom, per unit). Properties must also comply with parking requirements and remit hotel-motel taxes on rentals of 30 days or less.

Understanding these regulations before purchasing a property isn't optional, it's essential. The cost of acquiring a property that can't legally operate as a short-term rental is a mistake that no serious investor should make.

What Profitable Short-Term Rental Ownership Looks Like in 2025

Success in today's market requires a fundamentally different approach than what worked three years ago. Here's what we've learned from managing properties in this market:

Dynamic pricing is non-negotiable. Static nightly rates leave money on the table during high-demand periods and result in empty calendars during slower seasons. Professional revenue management tools analyze competitor pricing, local events, booking pace, and seasonal trends to optimize rates daily, especially during peak demand periods like St. Patrick's Day or the Savannah Music Festival.

Guest vetting protects your investment. A single problem guest can result in thousands of dollars in damage and devastating reviews that take months to overcome. Sophisticated screening processes that verify guest identity, analyze booking patterns, and assess risk before confirmation aren't paranoia - they're prudent business practice.

Distribution strategy matters. Relying solely on Airbnb exposes you to platform risk and leaves potential revenue "on the table." Professional operators list across all relevant OTAs: Airbnb, Vrbo, Booking.com, while simultaneously building direct booking capabilities that reduce commission costs and create guest relationships that drive repeat business.

Transparency drives better decisions. You can't optimize what you can't measure. Access to real-time revenue data, expense tracking, and performance analytics isn't a luxury, it's the foundation of informed ownership.

Our Approach: Operational Excellence Rooted in Discipline

At Stay Here, we bring seven years of short-term rental experience and a philosophy shaped by 22 years of military service. That background instilled in us an unwavering commitment to discipline, attention to detail, and mission execution - qualities that translate directly to hospitality operations.

Our portfolio maintains a 74% average occupancy rate, meaningfully above the market average of 67% and a 4.93 out of 5-star rating on Airbnb. These results aren't accidental. They're the product of systematic processes applied consistently across every property we own and manage.

We've invested in the best property management software in the market, providing our owners with complete visibility into every aspect of their property's performance through a dedicated owner's portal. Our dynamic pricing tools continuously analyze market conditions to maximize revenue. Our guest vetting process ensures that every booking meets rigorous standards before confirmation. And our distribution across all relevant OTAs, combined with direct booking capabilities, ensures maximum exposure while building sustainable guest relationships. Oh, and let's not forget our close partnership with Coastal Handymen, which allows us to perform preventative maintenance, improvements, and repairs at about 40% below market rates for properties in our portfolio.

Ready to Have a Real Conversation About Your Investment?

Whether you're considering your first short-term rental investment in Savannah, looking to improve operations on an existing property, or exploring partnership opportunities with experienced operators, we'd welcome the conversation.

We offer management services for property owners who want professional operations without the day-to-day involvement. We consult with investors navigating the Savannah market for the first time. And for those looking to participate in short-term rental returns without direct ownership responsibilities, we have investment partnership opportunities available.

Give us a call to discuss your situation. We'll give you our honest assessment of whether the opportunity matches your goals, and if we're the right partner to help you achieve them.