There’s no doubt that real estate investors can make a lot of money offering their properties as short term rentals, often referred to as “STR” or vacation rentals. Real estate investors need look no further than the meteoric rise in popularity of systems such as Airbnb and VRBO to see the potential growth of the vacation rental market.
But trying to figure out whether short-term or long-terms rentals make the most sense for a particular property can be a confusing and complex process! Among other things, STR landlords must understand:
- Municipal ordinances and restrictions on short-term rentals.
- Zoning and permitting requirements for short-term rentals.
- Demand for vacation rentals.
- How to calculate occupancy a nightly rate.
- Occupancy and vacancy rates for specific areas.
- Best practices for bookings, deposits, cleaning, maintenance, and turnovers.
- Tools, insurance, benefits, and limitations of Airbnb, VRBO, and other systems
The video below presents a deep dive into short term rentals, including a discussion about how a single mistake can shut down your vacation rental:
Also check out our podcast episode on short term rentals!