How to Start a New Short-Term Rental Business

Short-term rentals are becoming increasingly popular, as more and more people are looking for alternative accommodation options when traveling. If you're thinking about starting your own short-term rental business, there are a few things you need to do to get started.

1. Do your research

The first step is to do your research and learn as much as you can about the short-term rental industry. This includes understanding the different types of short-term rentals, the different markets, and the different regulations that may apply. You can find a lot of information online, but it's also a good idea to talk to other short-term rental owners and managers to get their insights. There are plenty of local meetups and online resources such as AirDNA.

2. Choose the right location

The location of your short-term rental is one of the most important factors in its success. You want to choose a location that is popular with tourists or business travelers, and that has a good mix of amenities. You also want to make sure that the location is zoned for short-term rentals, and that you have the necessary permits and licenses.

3. Find the right property

The type of property you choose will depend on your target market and your budget. If you're targeting families, you'll need a larger property with more bedrooms. If you're targeting business travelers, you'll need a property that is close to businesses and transportation. You'll also need to consider the condition of the property and the amount of work that will be needed to get it ready for guests.

4. Set up your rental

Once you've found the right property, you need to set it up for short-term rentals. This includes cleaning the property, providing linens and towels, and stocking the kitchen with basic supplies. You may also want to add some personal touches, such as fresh flowers or local artwork. Budgeting for furnishings / setup is crucial as it can cost anywhere from $10,000 for a small condo or house to $100,000 for luxury / high end large house depending on the size and style of the property.

5. Market your rental

Once your rental is ready, you need to start marketing it. There are a number of ways to market your rental, including online platforms, social media, and word-of-mouth. You can also offer discounts and promotions to attract guests. The sites we've had the most success on are airbnb and booking.com.

6. Manage your rental

Once you start getting bookings, you'll need to manage your rental. This includes communicating with guests, handling payments, and providing support. You may also want to hire a property manager to help you with these tasks but you'll be giving up about 20% of the earnings if you hire it out.

7. Track your finances

It's important to track your finances carefully when you're running a short-term rental business. This includes tracking your income, expenses, and profits. You can use accounting software to help you track your finances.

Starting a short-term rental business can be a great way to make extra money or even replace your income. However, it's important to do your research and plan carefully before you get started. By following these tips, you can increase your chances of success.

Here are some additional tips for starting a successful short-term rental business:

• Offer a high-quality experience. This includes providing clean and well-maintained accommodations, as well as excellent customer service.
• Be responsive to guests. Respond to inquiries and requests promptly, and make sure guests have everything they need during their stay.
• Be flexible with your pricing. Consider offering discounts for longer stays or for bookings during the off-season.
• Market your rental effectively. Use online platforms, social media, and word-of-mouth to reach potential guests.
• Get the right insurance. Short-term rental insurance can protect you from financial losses in the event of damage or theft.
• Comply with all laws and regulations. Make sure you are familiar with the laws and regulations that apply to short-term rentals in your area.

By following these tips, you can increase your chances of success when starting a short-term rental business.