Embarking on the journey of investing in short-term rental properties? Here’s a beginner-friendly guide to help you navigate this exciting venture.
What is a Short-Term Rental Property?
A short-term rental property is a dwelling with a lease term of fewer than 12 months, such as a single or multi-family home, condominium, or townhome. Typically, owners acquire these properties with the intent of leasing and do not reside in them. Homes seen on Airbnb, VRBO and similar sites are an example of Short-Term Rental Properties.
Can I make money with STRs?
Success in short-term rental investments relies on several pivotal factors:
- Location: Optimal locations include popular vacation spots, attracting a steady flow of tourists.
- Legal: Adhere to local laws and regulations governing short-term rentals to avoid potential pitfalls.
- Price point and rentability: What did you finance the house for (your mortgage payment) and how much can you rent it out per night.
- Strategic Marketing: Craft a robust marketing plan with compelling visuals and comprehensive property descriptions to attract guests.
How to Run a Short-Term Rental?
Run your short-term rental just like you would a business.
- Organize Finances: Keep records of expenses, taxes, and maintenance to stay organized. I use quickbooks and align with a CPA.
- Organize Schedule: If hosting your home on a site like Airbnb or VRBO, then keeping track of who checks in and who is checking out is ran pretty efficently for you. What these platforms do not do is schedule your cleaners! You still need to make sure you have cleaning set up for when guest check out and before the next guest check in.
- Tenant Screening: Screen potential tenants for a beneficial relationship, considering reviews and communication. This is done pretty well by airbnb, vrbo type companies.
- Stay Informed: Monitor local events to optimize pricing setpoints.
- Maintenance: Regular upkeep ensures positive reviews and consistent bookings. Have a TO GO list of close contractors, maintenance crews and cleaning crews you trust to do quality jobs and
- Customer Service: Superior service, including local information and prompt responses, enhances guest satisfaction.
Maximizing Your Short-Term Rental
Invest time and effort to enhance profitability:
- Invest in Property: Well-maintained properties with easy access to activities and amenities attract repeat customers. Stay ontop of all your typical house maintenance ex: pumping septic, lawn maintenance, propane for grill, gas for heating and oven/stove.
- Attend to Guests’ Needs: Providing superior customer service can lead to positive reviews and word-of-mouth recommendations.
