Building Wealth Through Real Estate - Considering Short Term Rentals?

March 9th, 2023

Short-term rentals can be a highly lucrative investment and a fun way to make money. Here are some things to consider before you hang up that “vacancy” sign.

1. Managing short term rentals is not exactly passive income. If you don’t have the time it takes to manage, property managers take 10%-15%.

2. Think beyond vacation rentals. Short term rentals don’t have to be on the beach or a ski slope - think about vicinity to hospitals, business hubs and other area attractions.

3. Do your due diligence when buying an investment property - assess the existing short-term rental market with tools like AirDNA.

4. Treat it like a business - know your ROI.

5. Work with an agent who knows the area. Buying the right property at the right price takes some experience.  Remember that the purchase of the property is the bigger investment than the rentals to follow.

Wondering which U.S. destinations are leading the pack in the short-term rental market? According to an analysis of Airbnb and Vrbo data, here are the markets with the highest potential profits:

- Maui, Hawaii - $375 average daily rate

- Kenai Peninsula, Alaska - $262 average daily rate

- Chattanooga, Tennessee - $180 average daily rate

- Gulfport/Biloxi, Mississippi - $196 average daily rate

- Slidell, Louisiana - $339 average daily rate

- Crystal River, Florida - $221 average daily rate

- Joshua Tree, California - $327 average daily rate

Wondering how to get started? Send us a DM — We’re happy to help!