Due diligence on STR

[Chi Sonubi]

Hey everyone!

I am a newbie STR investor and have recently had one of my offers on a property accepted. I am in the beginning of the due diligence period. I have a general idea of things I need to look out for, but this is my first investment so I am worrying about missing something big. After already vetting the market and general deal analysis, is there anything else I should be mindful of?

Appreciate your help!

[Scott E.]

Here are a few things to add to your due diligence checklist:

1) Home inspection, just like on any other property you buy

2) Additional inspections depending on age of property (like scoping the sewer lines, for example)

3) Study STR regulations in your city to ensure this property is permitted for this use

4) Interview 2-3 STR property managers to understand your income potential on this home

5) Study competitor properties on Airbnb and look for what they are charging per night, how they are finished, how they are furnished, etc

6) Consider your backup plans in the event your city starts cracking down on STRs and impacts the sustainability of this business for you