We learned a ton from other hosts and investors before we launched, and now that we are well down the short-term rental road, there is no doubt that certain bits of advice were more valuable than others. We’ve certainly made minor mistakes, but I’m grateful to say that we benefited greatly from the wisdom of those who went before us. So, while some of this may not fit the “lessons learned by messing up” box, what I CAN do is pay it forward by summarizing the most helpful advice and lessons “confirmed” that have led to our success.
So, for what it’s worth…
1) Location, location, location. What is nearby that attracts visitors? Is it seasonal or year-round? Does it attract families or parties?
2) Do your own research. Airdna and Mashvisor are great, but they’re not perfect. Better to watch similar properties for a while on Airbnb and VRBO, AND ask a realtor about returns, AND do the research on sites like Airdna and Mashvisor. The combination of data will yield the best analysis.
3) Gather as much data as possible for an informed buying decision, but make the leap—thorough analysis, but not analysis paralysis.
4) When setting up a property, consider things that will get people to book AND little surprises that will make them happy once they’re there. Touches like good linens, a plush mattress topper, labels and instructions for where to find or how to use things, or great coffee go a long way towards a 5-star review.
5) Speaking of reviews, educate guests on the review system. Our check-in email tells guests that many platforms consider anything less than a 5-star review to be an unsatisfied guest. As such, we tell them appreciate the opportunity to correct a situation during the stay rather than finding out about it afterwards. Nearly all guests give us that opportunity if there’s a problem that surfaces during their stay, and our average rating on Airbnb is 4.97.
6) Stay at your property before it goes active and periodically once it’s up and running. You may not realize the can opener broke or that the lamp light bulb is blown unless you spend some time there.
7) Don’t get too emotionally attached to the property. If you do, you may over-invest in things that don’t add value (wasting money on things that don’t give you a return is never a good idea), overreact to damages or things getting ruined (budget for those things to happen, buy duplicates, and then don’t give damages and ruined items another thought!), worry all the time, or be too protective of who you allow to stay (though screening is good, a fully occupied and highly profitable property may be worth very small risks—for each person to determine based upon risk tolerance, but we have very few bad guests).
8) Stating the obvious, but find ways to increase revenue. Definitely use an external pricing tool like Pricelabs, consider allowing pets with a fee (an extra $5-8k per year just might make the cost of that new rug more palatable—and it’s unlikely you’ll need one since most pet owners take care of the place), and consider one-night stays if the guests are properly screened.
9) Others will disagree and perhaps location has a part to play in areas that are and are not desirable for partying, but to elaborate on the last item above: one-night stays (between other guests) add about $10k NET to my annual bottom line. Don’t do single nights for locals, but DO consider them for the family of 4 that’s coming to town for a quick getaway or event.
10) Differentiate your property from the rest. It may be through nicer furnishings, adding a hot tub or pool table, or accepting pets. All of the above items can help create a niche, which particularly helps you stay booked during the off season.
11) Go for durability in choosing furniture and linens, and replace/service things sooner/more often than you would in your own home. A broken appliance could cost you more in frustrated guests, rental concessions, and property downtime than replacing it a bit more frequently.
12) Automate everything—bookings, confirmations, check-in emails with door codes, check-out reminders, etc. Everything! If you’re spending more than 20-30 minutes a WEEK managing a single STVR, then something in the process needs to be changed. Pricelabs, Hospitable, and a channel manager like Ownerrez or Lodgify are essentials.
13) Fear of a bad review can cause you to expect too little from your guests and to take on too much stress when something goes wrong. Provide a great (even if sometimes imperfect) experience, and most guests will leave a great review.
14) By the same token, don’t be difficult with your guests! We’re in the hospitality/service industry. If you don’t like that, then don’t buy a STVR! I’m often stunned at how hosts respond to problems/issues posted by another host seeking advice on social media (thankfully, Bigger Pockets hosts seem to have more class!). You’re going to have an occasional needy guest, difficult request, or unexpected cancellation that falls outside of your policies. Do your best to be flexible and serve your guests well.
15) Find an outstanding property cleaner/care-taker and treat him/her well! This person is the key to your success, having few headaches, attracting repeat visitors, and ensuring that guests have an overall great experience. Your cleaners may not put things in the same places you would, and there may be an occasional miss. Let these things go! If they’re committed, dependable, keep things clean and stocked well, and willing to do everything you need, then it is golden!
16) Be good neighbors. Many HOAs and local governments no longer allow STVRs. Buy somewhere that has already fought those battles (i.e. where you already know the rules of the game—not where the rules are yet to be created) and then meet the people around your property. Give them your contact information in case neighbors have problems with your guests, and assure them that you’re there to serve them as well as your guests.
