Maximizing ROI: 3 Key Features to Focus on in Short-Term Rental Properties

[Alice Fairbairn]

Hi everyone! 👋

I work with a lot of investors who are diving into short-term rentals, and I wanted to share a few tips I've picked up over the years that can really help maximize ROI. These are the top three features I always keep in mind when evaluating a potential property:

1️⃣ Location Matters: Properties near attractions, with great walkability, or offering something unique—like a waterfront or mountain view—tend to perform better. It’s all about what will draw guests in and make them choose your listing over others.

2️⃣ Standout Amenities: Rentals that offer something extra, like a hot tub, game room, or eye-catching design, often attract more bookings and higher rates. The little touches can make a big difference!  I have noticed that properties that allow pets in outdoor based communities perform great as well!

3️⃣ Local Regulations: Before you invest in a short-term rental, it's essential to understand the local rules and licensing requirements. Choosing an STR-friendly area can save you significant hassle and protect your investment in the long run. One key factor to confirm is whether the STR permit is transferable, as regulations can change. I've heard too many stories of investors purchasing homes for STR use, only to find that they lose their permit or the ability to transfer it when they sell. This can drastically reduce the property's value and cause unexpected headaches.

I’m curious—what features do you prioritize when looking at short-term rentals? Are there any strategies you’ve used to stand out in the market?

Looking forward to hearing your thoughts!

- Alice