Thinking About Turning Your Property Into a Short-Term Rental?
Short-term rentals through platforms like Airbnb or VRBO can be a good source of extra income. But before you jump in, it’s important to know what this type of real estate investment really involves — and whether it fits your lifestyle, time, and financial goals.
What to Know About the Short-Term Rental Market
In 2024, short-term rental owners earned between $20,000 and $40,000 annually depending on the size and location of their property, according to AirDNA. While the income can be attractive, managing a short-term rental is often more work than many expect.
Skills You’ll Need for Success
Guest Service Skills
Renting out your space means handling customer service around the clock. This includes everything from creating a comfortable guest experience to solving issues quickly and professionally.
Financial Planning
Short-term rentals come with seasonal ups and downs. You may have months with high income and others with few bookings. Be sure you can manage expenses during slower periods.
Time Commitment
Managing bookings, cleaning between stays, answering guest questions, and handling last-minute problems takes time. If you’re looking for passive income, this may not be the right fit.
Understanding Local Laws
Short-term rental rules vary by city and county. Some areas welcome them; others have strict restrictions or require permits. Before starting, make sure you understand and comply with your local regulations.
Marketing and Listing Management
Creating a clear, appealing online listing is key to attracting bookings. You’ll also need good photos, thoughtful descriptions, and a pricing strategy that keeps you competitive in your area.
Can It Be Worth It Financially?
It can be. A report from Evolve showed that top-performing short-term rental owners earned 10% or more in annual returns. If you're organized, customer-focused, and willing to commit time and energy, a short-term rental can offer a solid return on investment.
Should You Manage It Yourself or Hire Help?
If you're unsure about handling the day-to-day operations, working with a property management company may be a good starting point. They handle bookings, cleanings, and guest communication — for a fee. This lets you enjoy the income while minimizing the workload.
Ready to Get Started?
Before you turn that extra room or investment property into a short-term rental, ask yourself:
- Do I have time to manage this?
- Am I prepared to handle guest communication and expectations?
- Have I reviewed the legal and zoning rules in my area?
If the answer is yes, a short-term rental could be a smart next step in your real estate journey.
Interested in using real estate to generate extra income? Let’s talk about how short-term rentals or investment properties could fit your financial plans.