Understanding Short-Term Rental Restrictions on Ono Island

By Meredith Amon

As a homeowner and real estate advisor on Ono Island in Orange Beach, Alabama, I often get questions from buyers about short-term rental opportunities. Ono Island is a unique and exclusive community, and one of the things that sets it apart is the strict regulation on rentals. If you're considering purchasing property here with rental income in mind, it's essential to understand these restrictions and how they might impact your investment.

Short-Term Rentals Are Highly Restricted

Unlike many coastal communities where short-term rentals are prevalent, Ono Island has a firm stance on maintaining its residential character. Only a handful of properties (2-3) have been grandfathered in, allowing short-term rentals with a minimum stay of 7-30 days. For all other homes, rentals must be for a minimum of 30 days or more. This means Airbnb, VRBO, and similar short-term rental platforms are not viable options for most property owners here.

From my experience, this restriction is a double-edged sword. On one hand, it discourages high turnover and transient guests, which helps maintain a quieter, more stable environment. On the other hand, it limits investment opportunities for those looking for frequent rental income. If you’re looking at Ono Island as an investment, this is something to consider.

Costs & Fees for Rental Owners

For those who do rent their properties within the 30-day minimum restriction, there are additional costs to factor in:

$600 annual impact fee – This is a standard fee for rental properties on Ono Island.
$300 per rental contract – If you rent your property multiple times a year, these fees can quickly add up.
$5000 flat annual fee – This may be a more cost-effective option for owners who rent frequently throughout the year.

If you plan to rent, I recommend crunching the numbers to determine which fee structure makes the most sense for your situation. I’ve worked with clients who initially underestimated these costs, only to realize later that renting wasn’t as profitable as they expected.

Reviewing POA Rules & Regulations

Beyond the rental duration and fees, the Ono Island Property Owners Association (POA) has additional rules governing rentals. These may include advertising restrictions, lease agreement requirements, and tenant screening processes. Before making any assumptions about rental income potential, it’s crucial to review the latest POA documents and ensure you’re fully compliant.

What This Means for Property Values

One of the benefits of limited short-term rentals is property value stability. Many buyers appreciate the residential atmosphere and lack of transient renters, which can contribute to a higher resale value. If you’re looking for a peaceful retreat, this restriction works in your favor. Conversely, if rental income is your priority, a property outside of Ono Island may be a better fit.

My Recommendations

If you want rental income, consider a different location. Ono Island’s restrictions make it less appealing for investors looking for frequent short-term rental turnover.
If you value peace and exclusivity, this is the place for you. The lack of short-term rentals means fewer disruptions, less noise, and a greater sense of community.
If you plan to rent, run the numbers first. Factor in the annual impact fees and POA regulations to determine if renting makes financial sense.
Always check the latest POA guidelines. Rules can change, and it’s best to stay informed before making any decisions.

Who Benefits from Ono Island’s Rental Restrictions?

✅ Buyers looking for a vacation home without the disruption of short-term rentals nearby.
❌ Investors seeking frequent short-term rental income (unless they own one of the rare grandfathered properties).

If you’re considering buying or selling on Ono Island and want to navigate these regulations effectively, I’d be happy to help. My goal is to ensure that you make an informed decision that aligns with your lifestyle and investment objectives. Feel free to reach out with any questions—I’m always here to provide insight on Ono Island real estate.