What features do you look for in a property to make it a short-term rental?

Question

For me one of the most important characteristics is the location, trying to make sure that it is a place frequented by tourists or travelers passing through, and that it has attractive places nearby.

And what do you take into account besides this?

Zach Edelman · Answer

While amenities are important, I genuinely think half the battle is how you present the amenities through professional pictures. Pictures are so so important, and can help your property compete against others that might have even better amenities.

Travis Timmons · Answer

1. Know who your customer will be and then work backward from there.

2. Maximize the bedroom count for your budget.

3. Avoid close neighbors if possible. I will not buy in an HOA. It can work, but that's one more authority that can make a rule and limit my options.

4. This is kind of all encompassing, but guests stay at a place because of price, location, and/or amenities. Figure out how you will compete on those 3 items and go from there. Do everything you can to limit your competition. For example, a 5 bedroom house, across the street from a particular attraction, etc. Do whatever you can to limit the number of properties that will be your direct competition. Making a standard 3/2 that does not have exceptional amenities or a great location stand out is difficult bc there will likely be so many other similar properties on the booking platforms. You'll likely have to compete on price, which is fine if it still pencils, but that's not ideal.

5. Seasonality - call me crazy, but I really like seasonality if you are self managing. I realize that is about the market than the property. You'll need to manage your money well, but about the time you get tired of dealing with the day to day management, the slow season hits and you get a break. The house also needs a break to do maintenance and upkeep.

Andrew Steffens · Answer

I think this differs depending on the region you are in.  As an investor/manager in FL I look for properties that embody Florida:

1. Close to beach/attractions i.e. location

2. Outdoor space:

a. Pool

b. Lush tropical landscaping

3. Indoor space, clean and updated.  As modern as possible but depending on budget properties do not need to necessarily be super modern, they can be clean and comfortable.

Most people come to FL to be outdoors, so while a nicely updated and furnished property is still important especially in a softer market like now, the importance to me is the location and outdoor space.  I am also an avid traveler to the mountains (TN/NC) in winter.  There is spent quite a bit of time indoors so the interior esthetics are important, as is the location/views and having a hot tub.

Kyle Hoffman · Answer

Here a few things that are vital to think about when investing in a successful STR...

1. Location - find a city or suburb with a need for short-terms (for example, I live in Indianapolis which is a major host city for conventions, sporting events, etc.) that will bring in people, also easy to access

2. Unique experience - from the decor to the amenities to the local shops and restaurants, make sure your rental provide something different...target a niche!

3. Run the numbers - several things to keep in mind here, but using tools like AIRDNA along with an investor-friendly agent can help you have as much knowledge as possible to be able to calculate pricing, expected occupancy rates, and overall revenue potential after taxes, mortgage, expenditures, etc.

Dan H. · Answer

Lots of good answers.  I will add walkability to the list.  I am placing an offer tomorrow that is distinguished from much of the competition by walkability.   Virtually all have pool/spa access, they are nice interiors, beach access, but the walkability of the one we are planning to offer on is a bit better.  It also has a private beach that some of the competition is missing.

Good luck

Sarah Kensinger · Answer

Location, views, and can value be added to the property.

What features do you look for in a property to make it a short-term rental?

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