Innovative Strategies for Maximizing ROI in Short-Term Rentals
Most Popular Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesHot tubs, pool tables, movie rooms, kayaks and canoes, bikes, games, nice comfortable beds, smart TV's, video games, well stocked kitchens, etc.
46 Replies
- 2yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Hot tubs, pool tables, movie rooms, kayaks and canoes, bikes, games, nice comfortable beds, smart TV's, video games, well stocked kitchens, etc.
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
Hey @Lotus Eli, @John Underwood covered a lot of it, but it really depends on the area.
You need to do a lot more if the area doesn't have something else to offer.
For example, the big potato. There isn't much around it but you get to stay in a potato.
Or the Polly Pocket house. Or the submarine.
If you have a great location on a lake, in the mountains, on the beach etc., You don't need to crazy with stuff like putting greens or themed rooms.
Plenty of games for rainy days, a great kitchen, beautiful view of the lake we are on is how we succeed. Plus great communication with guests.
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @John Underwood:
Hot tubs, pool tables, movie rooms, kayaks and canoes, bikes, games, nice comfortable beds, smart TV's, video games, well stocked kitchens, etc.
Thank you for your help!
I truly appreciate it!
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Michael Baum:
Hey @Lotus Eli, @John Underwood covered a lot of it, but it really depends on the area.
You need to do a lot more if the area doesn't have something else to offer.
For example, the big potato. There isn't much around it but you get to stay in a potato.
Or the Polly Pocket house. Or the submarine.
If you have a great location on a lake, in the mountains, on the beach etc., You don't need to crazy with stuff like putting greens or themed rooms.
Plenty of games for rainy days, a great kitchen, beautiful view of the lake we are on is how we succeed. Plus great communication with guests.
That was insightful!
Thank you so much for your help I truly appreciate it.
Do you have any advice for when the off season comes? - 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
Congratulations!
Im not sure what market you are in but on top of the sound advice above you need to be pricing your property correctly according seasonality and your competition. Even if you have a "perfect" house, it will not rent if not priced correctly, OR you will be overrented (yes that is a thing) meaning you are leaving money on the table.
Marketing is also big - Again depending on the area you want to be on as many relevant channels as possible - Airbnb, VRBO, Booking.com, Zillow, Furnished Finder etc and have a direct booking strategy for repeat guests to cut out the middle men.
Best of luck!
Vacation Rentals of Florida53 Reviews - 2yKiKi ChaseBusiness MemberReal Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
Hi Lotus! I love your name, and I think it's great that you're jumping into the STR game! We manage properties in the Indianapolis, IN area.
Amenities- depending on the market, a hot tub could be a great addition to your STR. I would look at comps in the area and see if other STRs are doing well with hot tubs. If you are marketing your property as kid or dog friendly, buy things that coincide with that like high chair, kids plates, cups, silverware, kid games, and maybe some kid proofing like outlet covers. Or, dog bowls, dog treats, toys, doggie bags for mess clean up in yard, etc.
Guest experience- We have hired VAs that do 24/7 messaging, so guest always have access to someone, we also have an Instacart+ membership so we are able to send anything over if they need it (like if our cleaners didn't put out enough toilet paper, etc.). A big part of guest experience is design and functionality of the home. Making the home look good with design and make sure people can be comfortable there will always help.
Seasonal strategies- Almost all of our properties are hybrid. So, we have them listing as STR in the more busy seasons, and we transition them into MTRs during the winters, or slower seasons. It certainly doesn't work with each listing, but that is what we do with the majority and it is consistent income during a slow season.
Best of luck!!! :)
Brentwood Collective54 Reviews - 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votesIt all depends on where you are located and long the primary season is. If your season is short, then I might look at a longer term short rental. Maybe do some 3 month stays or 6 months stays if you can.
Quote from @Lotus Eli:
That was insightful!
Thank you so much for your help I truly appreciate it.
Do you have any advice for when the off season comes?
Of course you can lower your pricing to be competitive with other rentals in your area. - Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Andrew Steffens:
Congratulations!
Im not sure what market you are in but on top of the sound advice above you need to be pricing your property correctly according seasonality and your competition. Even if you have a "perfect" house, it will not rent if not priced correctly, OR you will be overrented (yes that is a thing) meaning you are leaving money on the table.
Marketing is also big - Again depending on the area you want to be on as many relevant channels as possible - Airbnb, VRBO, Booking.com, Zillow, Furnished Finder etc and have a direct booking strategy for repeat guests to cut out the middle men.
Best of luck!
Thank you for your insights Andrew! I truly appreciate it !
You gave me some quality information
I hadn’t heard of a direct booking strategy for repeat guests before. Do you have any
recommendations on how to implement this effectively?
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @KiKi Chase:
Hi Lotus! I love your name, and I think it's great that you're jumping into the STR game! We manage properties in the Indianapolis, IN area.
Amenities- depending on the market, a hot tub could be a great addition to your STR. I would look at comps in the area and see if other STRs are doing well with hot tubs. If you are marketing your property as kid or dog friendly, buy things that coincide with that like high chair, kids plates, cups, silverware, kid games, and maybe some kid proofing like outlet covers. Or, dog bowls, dog treats, toys, doggie bags for mess clean up in yard, etc.
Guest experience- We have hired VAs that do 24/7 messaging, so guest always have access to someone, we also have an Instacart+ membership so we are able to send anything over if they need it (like if our cleaners didn't put out enough toilet paper, etc.). A big part of guest experience is design and functionality of the home. Making the home look good with design and make sure people can be comfortable there will always help.
Seasonal strategies- Almost all of our properties are hybrid. So, we have them listing as STR in the more busy seasons, and we transition them into MTRs during the winters, or slower seasons. It certainly doesn't work with each listing, but that is what we do with the majority and it is consistent income during a slow season.
Best of luck!!! :)Thank you I like your profile picture you look like a beautiful daffodil.
Thank you so much for your insights they were so helpful and I will be implementing them all!
From the Amentites, VA's, and MTR's ! It seems like design and functionality is important I'll
definitely be focusing on that coupled with guest experience! Thank you Kiki
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Michael Baum:
It all depends on where you are located and long the primary season is. If your season is short, then I might look at a longer term short rental. Maybe do some 3 month stays or 6 months stays if you can.Quote from @Lotus Eli:
That was insightful!
Thank you so much for your help I truly appreciate it.
Do you have any advice for when the off season comes?
Of course you can lower your pricing to be competitive with other rentals in your area.Thanks so much, Michael! Turning it into a longer-term rental makes a lot of sense. If you don’t mind me asking, who do you typically market to? People on work assignments?
- 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
Quote from @Lotus Eli:
Quote from @Andrew Steffens:
Congratulations!
Im not sure what market you are in but on top of the sound advice above you need to be pricing your property correctly according seasonality and your competition. Even if you have a "perfect" house, it will not rent if not priced correctly, OR you will be overrented (yes that is a thing) meaning you are leaving money on the table.
Marketing is also big - Again depending on the area you want to be on as many relevant channels as possible - Airbnb, VRBO, Booking.com, Zillow, Furnished Finder etc and have a direct booking strategy for repeat guests to cut out the middle men.
Best of luck!
Thank you for your insights Andrew! I truly appreciate it !
You gave me some quality information
I hadn’t heard of a direct booking strategy for repeat guests before. Do you have any
recommendations on how to implement this effectively?
We use Stayfi which collects guest information as they connect to the internet. However, more simply you can collect it manually and then use Constant Contact to email your previous guests on a marketing campaign
Vacation Rentals of Florida53 Reviews - 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votesSo we market to families and groups traveling for the bike trail. Otherwise we don't get MTR folks as we are way out of town.
Quote from @Lotus Eli:
Thanks so much, Michael! Turning it into a longer-term rental makes a lot of sense. If you don’t mind me asking, who do you typically market to? People on work assignments?
- Property Manager · Destin, FL · Member since 2023 · 83 posts · 27 votes2y
@Lotus Eli, really depends on your market. I would stay away or be cautious when looking at studios and 1-br apts. Some markets, those are gold mines, others, they just struggle to break even. Seasonality hugely varies from market to market. STR permitting could be a huge challenge depending on the market. It costs about $2000 in Destin, FL for instance to convert a regular residential use to STR use permit if it's the first time the house being coverted for usage. In some markets in CA, there are only limited number of permits and you may have to wait over year to get an STR permit. Choosing your market is extremely important..
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Andrew Steffens:
Quote from @Lotus Eli:
Quote from @Andrew Steffens:
Congratulations!
Im not sure what market you are in but on top of the sound advice above you need to be pricing your property correctly according seasonality and your competition. Even if you have a "perfect" house, it will not rent if not priced correctly, OR you will be overrented (yes that is a thing) meaning you are leaving money on the table.
Marketing is also big - Again depending on the area you want to be on as many relevant channels as possible - Airbnb, VRBO, Booking.com, Zillow, Furnished Finder etc and have a direct booking strategy for repeat guests to cut out the middle men.
Best of luck!
Thank you for your insights Andrew! I truly appreciate it !
You gave me some quality information
I hadn’t heard of a direct booking strategy for repeat guests before. Do you have any
recommendations on how to implement this effectively?
We use Stayfi which collects guest information as they connect to the internet. However, more simply you can collect it manually and then use Constant Contact to email your previous guests on a marketing campaign“
I’ll definitely keep those resources in mind. I’ve never heard of StayFi before, so I’ll have to check it out. Thanks for sharing that valuable tip Andrew!
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Michael Baum:
So we market to families and groups traveling for the bike trail. Otherwise we don't get MTR folks as we are way out of town.Quote from @Lotus Eli:
Thanks so much, Michael! Turning it into a longer-term rental makes a lot of sense. If you don’t mind me asking, who do you typically market to? People on work assignments?
That sounds like a smart plan! I’m sure you attract plenty of visitors with that approach. I really appreciate your insight Michael!
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Kumar R.:
@Lotus Eli, really depends on your market. I would stay away or be cautious when looking at studios and 1-br apts. Some markets, those are gold mines, others, they just struggle to break even. Seasonality hugely varies from market to market. STR permitting could be a huge challenge depending on the market. It costs about $2000 in Destin, FL for instance to convert a regular residential use to STR use permit if it's the first time the house being coverted for usage. In some markets in CA, there are only limited number of permits and you may have to wait over year to get an STR permit. Choosing your market is extremely important..
Wow, Kumar! I had no idea about that. Before I close, I definitely need to look into permits and seasonality. Thank you for your insights I appreciate them.
- San Francisco · Member since 2023 · 24 posts · 7 votes2yI would challenge the statement that if you have a great location on a lake or in the mountains that you don’t need the putting green etc. Most importantly, I think, is to ask the question - what are your direct competitors doing? What is table stakes amenities wise to compete with them? And then ask what are the top earners offering? You might not be able to beat that top earner if they have something you can’t achieve (ie lake front or better views), but knowing what amenities matter in your market is an essential step in determining what you need to provide.
Quote from @Michael Baum:
Hey @Lotus Eli, @John Underwood covered a lot of it, but it really depends on the area.
You need to do a lot more if the area doesn't have something else to offer.
For example, the big potato. There isn't much around it but you get to stay in a potato.
Or the Polly Pocket house. Or the submarine.
If you have a great location on a lake, in the mountains, on the beach etc., You don't need to crazy with stuff like putting greens or themed rooms.
Plenty of games for rainy days, a great kitchen, beautiful view of the lake we are on is how we succeed. Plus great communication with guests.
There are markets where the supply of amazing homes replete with every amenity is significant, and if you’re in one of those markets, then you relying on a great view (that most everybody has) is not enough. - 2yGarrett BrownPro MemberRental Property Investor · Houston, TX · Member since 2024 · 505 posts · 553 votes
Welcome Lotus! You have gotten some great advice already in here but I will touch on the guest experience portion and local partnerships.
My tips for guest experience:
Have a digital guidebook explaining everything inside and near by places to visit.
Record a YouTube video of yourself touring the property and showing the details of working things. Send this video automatically when guests book. They will love seeing the owner explain things before they arrive.
Send auto messages the evening they check in and ask how things are going to get ahead of any problems.
Provide a small welcome basket and "in case you forgot" basket. I do some popcorn, Rice Krispies, sleeping masks, ear plugs, toothbrush /toothpaste, etc.
local partnerships: find restaurants you may be able to get a discount for sending guests over for. I partner with local coffee places for our coffee and also local boat/jet ski rentals to provide discounts to guests. I don't get any kickback from things but my guests love it and feel valued. I also like supporting local.
My next one will be for my pet friendly place that has a new small dog park on it. I am partnering with a local animal shelter to do content one day promoting the puppies and my own place in one.
Just a few quick ideas!I would sign up for BiggerPockets' STR-centered newsletter, BiggerStays, as well to stay up to date on all STR news and tips. You can sign up foril the direct link comes soon) by going into settings on your profile, going to notifications, then marketing emails, and clicking short-term rental newsletter. It's a great resource to stay on top of things (I also help write it, it for now (unt so I may be biased).
- Rental Property Investor · Orange County, CA · Member since 2018 · 28 posts · 11 votes2y
Quote from @Garrett Brown:
local partnerships: find restaurants you may be able to get a discount for sending guests over for. I partner with local coffee places for our coffee and also local boat/jet ski rentals to provide discounts to guests. I don't get any kickback from things but my guests love it and feel valued. I also like supporting local.
This is such a good idea. Regarding the partnerships with rental places, have you thought of or tried any type of concierge service? I guess I'm thinking, is there a way to have your STR tenants have an experience that is above what a normal guest renting from them might get? As an example, could the coffee shop offer them a discount (that you would pay or not) by showing some kind of card? Could the rental places through in some small extra by doing the same? curious if you've played around with this.
- Investor · KY · Member since 2022 · 204 posts · 77 votes2y
I believe one of the best methods to create wealth right now via STR is to buy land and build new construction. Then furnish that new construction and run it as an STR. The equity created will give you a good buffer during these uncertain financial times.
- 2yGarrett BrownPro MemberRental Property Investor · Houston, TX · Member since 2024 · 505 posts · 553 votes
Quote from @Kurt Snyder:
Quote from @Garrett Brown:
local partnerships: find restaurants you may be able to get a discount for sending guests over for. I partner with local coffee places for our coffee and also local boat/jet ski rentals to provide discounts to guests. I don't get any kickback from things but my guests love it and feel valued. I also like supporting local.
This is such a good idea. Regarding the partnerships with rental places, have you thought of or tried any type of concierge service? I guess I'm thinking, is there a way to have your STR tenants have an experience that is above what a normal guest renting from them might get? As an example, could the coffee shop offer them a discount (that you would pay or not) by showing some kind of card? Could the rental places through in some small extra by doing the same? curious if you've played around with this.
I actually do have a local concierge service that helps me with some bigger things a guest may need set up. I also found the local DoorDash drivers and built relationships with them to help my guests in time of need. Most of my guests will go in and tell the restaurants /shops that they are staying with my glamping site for 10%. These are all mom-and-pop operations, so setting this up was easy. A card or flier does seem like a cool idea to make the guests feel even more important when they go in.
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Katherine Lewis:
I would challenge the statement that if you have a great location on a lake or in the mountains that you don’t need the putting green etc. Most importantly, I think, is to ask the question - what are your direct competitors doing? What is table stakes amenities wise to compete with them? And then ask what are the top earners offering? You might not be able to beat that top earner if they have something you can’t achieve (ie lake front or better views), but knowing what amenities matter in your market is an essential step in determining what you need to provide.Quote from @Michael Baum:
Hey @Lotus Eli, @John Underwood covered a lot of it, but it really depends on the area.
You need to do a lot more if the area doesn't have something else to offer.
For example, the big potato. There isn't much around it but you get to stay in a potato.
Or the Polly Pocket house. Or the submarine.
If you have a great location on a lake, in the mountains, on the beach etc., You don't need to crazy with stuff like putting greens or themed rooms.
Plenty of games for rainy days, a great kitchen, beautiful view of the lake we are on is how we succeed. Plus great communication with guests.
There are markets where the supply of amazing homes replete with every amenity is significant, and if you’re in one of those markets, then you relying on a great view (that most everybody has) is not enough.Thank you for your insight Katherine , noted everything!
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Garrett Brown:
Welcome Lotus! You have gotten some great advice already in here but I will touch on the guest experience portion and local partnerships.
My tips for guest experience:
Have a digital guidebook explaining everything inside and near by places to visit.
Record a YouTube video of yourself touring the property and showing the details of working things. Send this video automatically when guests book. They will love seeing the owner explain things before they arrive.
Send auto messages the evening they check in and ask how things are going to get ahead of any problems.
Provide a small welcome basket and "in case you forgot" basket. I do some popcorn, Rice Krispies, sleeping masks, ear plugs, toothbrush /toothpaste, etc.
local partnerships: find restaurants you may be able to get a discount for sending guests over for. I partner with local coffee places for our coffee and also local boat/jet ski rentals to provide discounts to guests. I don't get any kickback from things but my guests love it and feel valued. I also like supporting local.
My next one will be for my pet friendly place that has a new small dog park on it. I am partnering with a local animal shelter to do content one day promoting the puppies and my own place in one.
Just a few quick ideas!I would sign up for BiggerPockets' STR-centered newsletter, BiggerStays, as well to stay up to date on all STR news and tips. You can sign up foril the direct link comes soon) by going into settings on your profile, going to notifications, then marketing emails, and clicking short-term rental newsletter. It's a great resource to stay on top of things (I also help write it, it for now (unt so I may be biased).
Woah Garrett , you go above and beyond for your STR guest! I have to get like you lol! Thank you for all the tips, I am definitely implementing allllll of them. Especially the digital guidebook! I’m particularly interested in the idea of partnering with local businesses. Could you share more about how you approach these partnerships and any advice on establishing successful collaborations if you have time please?
- Investor · Casper, WY · Member since 2020 · 43 posts · 19 votes2y
Quote from @Zachary Cain Humphrey:
I believe one of the best methods to create wealth right now via STR is to buy land and build new construction. Then furnish that new construction and run it as an STR. The equity created will give you a good buffer during these uncertain financial times.
Zachary, Thanks for the great tip on building new constructions for STRs! It sounds like a smart way to build equity and stay secure financially. I’m curious, though—how much does it typically cost to buy land, build, and furnish these properties? And how long does it usually take to complete a project like this?
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votesWell I hear what you are saying. I know that a putting green or some kind of amenity like that wouldn't make a lick of difference in my area.
Quote from @Katherine Lewis:
I would challenge the statement that if you have a great location on a lake or in the mountains that you don’t need the putting green etc. Most importantly, I think, is to ask the question - what are your direct competitors doing? What is table stakes amenities wise to compete with them? And then ask what are the top earners offering? You might not be able to beat that top earner if they have something you can’t achieve (ie lake front or better views), but knowing what amenities matter in your market is an essential step in determining what you need to provide.
There are markets where the supply of amazing homes replete with every amenity is significant, and if you’re in one of those markets, then you relying on a great view (that most everybody has) is not enough.
I look at our direct competition and we are still the best value on the lake for the space.
We are lakefront and with a great view. People are rarely in the house. They are out on the lake all day, on the beach or riding the 72 mile long bike trail.
Of course we are not talking about Orlando. It is north Idaho and quite rural. There are only 14 rentals in our rather large area of the lake.
I personally think this advice is more for the high saturation areas vs those of us in outside the mainstream areas.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.