Learn how to start a profitable vacation rental business in 2025 with our step-by-step guide covering planning, legal setup, marketing, and daily operations.
Learn how to start a profitable vacation rental business in 2025 with our step-by-step guide covering planning, legal setup, marketing, and daily operations.
The vacation rental market generated $107.87 billion globally in 2025.
You can claim your share.
But starting a vacation rental business requires more than listing a property online. You need a solid vacation rental business plan, the right property management tools, and a clear strategy to generate consistent rental income.
This guide walks you through every step to launch your short-term rental business successfully.
A vacation rental business involves renting properties for short periods days or weeks instead of months or years.
Your guests could be families on holiday, business travelers, or remote workers seeking temporary accommodation.
The difference between vacation rentals and hotels? You offer more space, privacy, kitchen facilities, and often a more local experience. This is why the short-term rental industry continues to grow while traditional hotels face increasing competition.
You can own vacation rental properties or manage them for other owners. Your income comes from nightly or weekly rates paid by guests who book through platforms like Airbnb, Vrbo, Booking.com, or direct bookings on your website.
Whether you want to start an Airbnb business, become a vacation rental host, or build a property management company, the fundamentals remain the same.
The numbers tell a compelling story about vacation rental profitability.
According to Statista's vacation rental market forecast, the global market is projected to grow at a 6.70% compound annual growth rate through 2030, reaching $149.19 billion. In the United States alone, the market will hit $21.08 billion in 2025.
Demand is outpacing supply. In the US, short-term rental demand grew 7.0% year-over-year while supply increased only 4.7%. This gap creates opportunities for new vacation rental operators.
You have several advantages over long-term rentals:
The average Airbnb vacation rental in the US earns $3,196 per month compared to $1,787 for traditional rentals.
You do not need years of hospitality experience.
But you do need specific qualities:
Problem-solving ability - Guests will have issues. WiFi fails. Appliances break. You need quick solutions, not panic.
Attention to detail - Cleanliness, amenities, and communication determine your reviews. Reviews determine your bookings and vacation rental revenue.
Financial discipline - Track every expense. Monitor occupancy rates. Adjust pricing based on data, not guesses.
Adaptability - Regulations change. Guest expectations evolve. Markets shift. You must pivot quickly.
Customer service mindset - You are competing with hotels. Your guest experience must exceed their standards.
Can you handle difficult guests professionally? Can you respond to inquiries within an hour? Can you fix problems at 11 PM?
If yes, you can succeed.
Do not skip this step.
A business plan forces you to calculate real numbers before you spend real money.
What does success look like for your vacation rental company?
Write specific numbers. "Make good money" is not a goal. "$8,000 monthly profit by month 12" is a goal.
Study these factors before buying or renting a property:
Location demand - Check tourism board statistics for visitor numbers. Are they increasing or decreasing? Is the area popular year-round or seasonal?
Competition analysis - Search Airbnb and Vrbo for similar properties. What are they charging? What amenities do they offer? What do their reviews say?
Supply vs demand - High demand with low supply means profit. High supply with low demand means losses.
Top US markets for 2025 include Orlando, Boston, and San Diego. But emerging markets often offer better opportunities with less competition.
Startup costs:
Monthly expenses:
Income projections:
Use tools like AirDNA or Mashvisor to estimate realistic income. Never assume 100% occupancy. Even successful operators calculate at 80% maximum.
A one-bedroom property earning $150/night at 65% occupancy generates $2,925/month before expenses. A three-bedroom at $280/night and 70% occupancy generates $5,880/month.
Your profit margin should be 10-20% after all expenses.
You have three options:
Own the property - Highest profit potential but requires significant capital. You need down payment, mortgage approval, and can handle market fluctuations.This traditional vacation rental investment model works best when you have access to financing.
Rental arbitrage - Lease a property long-term and sublet it short-term. Lower startup costs but you need landlord permission and a margin between long-term rent and short-term income.
Property management - Manage properties for owners in exchange for 20-30% of revenue. No property investment but you must prove you can generate more income than owners could themselves.
Many hosts start with arbitrage or management, then buy properties once profitable.
Regulations will make or break your business.
Cities like New York and Barcelona have strict restrictions. Others like San Diego have clear, friendly guidelines.
Check these regulations in your specific location:
In Denver, the property must be your primary residence. In London, you can rent your home for up to 90 days per year without planning permission.
Start your research early. Permit applications can take months.
Standard homeowners insurance does not cover short-term rentals.
You need:
Airbnb offers AirCover for hosts, but it has limitations. Consider additional policies from companies specializing in vacation rental insurance coverage.
Treat this like a real business because it is one.
Proper business structure protects your personal assets and simplifies taxes.
Location determines your success more than any other factor.
Consider these priorities:
Proximity to your home - Managing a property 3 hours away is possible but challenging. You need reliable local help for emergencies and cleanings.
Tourist attractions - Properties near beaches, ski resorts, theme parks, or city centers book more consistently. But they also face more competition.
Accessibility - Can guests reach your property easily? Is parking available? Can they walk to restaurants and activities?
Seasonality - Year-round destinations provide steady income. Seasonal locations have peak earnings but quiet months.
Future development - Research planned construction, new attractions, or infrastructure projects that could increase or decrease property values.
Who are you hosting?
Match your furnishings to your guest profile.
Essential items every property needs:
Add these for five-star reviews:
Invest in professional photography. Your listing photos determine whether guests click or scroll past.
The right property management software saves hours weekly and increases vacation rental revenue.
You need a centralized platform to manage everything:
Guestara unifies everything you need in a single platform that integrates with your current PMS, purpose-built for vacation rental operators.
Without proper software, you will make mistakes. Double bookings destroy guest trust and your reputation.
Guests expect convenient access:
Smart locks eliminate key handoff logistics and reduce lockout calls.
Your rates should change based on:
Manual pricing leaves money on the table. Automated tools like PriceLabs or Wheelhouse optimize rates to maximize occupancy and revenue.
More exposure means more bookings.
The largest platform with the most active travelers. Airbnb generated 448 million nights booked in 2024.
Pros:
Cons:
Owned by Expedia, Vrbo focuses on whole-home rentals for families.
Pros:
Cons:
International reach, especially strong in Europe.
Pros:
Cons:
Direct bookings mean no platform fees.
Create a simple website with:
You will not get high direct booking volume immediately. But over time, repeat guests and local searches add up.
Use channel management software to synchronize calendars across all platforms. Never manually update multiple sites.
Your listing either converts viewers into bookers or sends them to competitors.
Your title appears in search results. It must grab attention and include key details.
Bad: "Nice apartment in downtown" Good: "Modern 2BR Downtown Loft | Walk to Restaurants | Free Parking"
Include:
Start with your strongest selling point.
"Wake up to ocean views from every room in this completely renovated beachfront condo."
Answer these questions:
Use short paragraphs. Break up text with headers. Make it easy to scan.
Be honest. Do not promise amenities you lack. Disappointed guests leave terrible reviews.
Research comparable properties in your area.
Your price should reflect:
Price too high and you get no bookings. Price too low and guests question quality.
Start competitive, earn excellent reviews, then gradually increase rates.
Your photos are more important than your description.
Hire a professional photographer or learn these basics:
One professional photo shoot pays for itself with higher booking rates.
Reviews determine your success.
Respond to inquiries within one hour. Every hour of delay reduces booking probability.
Send these automated messages:
Personalize templates. Nobody wants robot responses.
Guests hate complicated check-in processes.
Provide:
The easier your check-in, the better your reviews start.
Go beyond basics.
Guests love finding:
Small touches create five-star experiences.
Something will go wrong. The WiFi fails. The dishwasher leaks. A neighbor complains about noise.
Your response determines your review.
Acknowledge problems instantly. Apologize sincerely. Fix issues quickly or offer alternatives.
Keep a list of reliable contractors for emergencies plumber, electrician, locksmith, HVAC technician.
You cannot manually manage every task as you grow.
Clean properties get booked. Dirty properties get destroyed by reviews.
Professional cleaners are not optional. They cost $80-150 per turnover depending on property size and location.
Provide detailed checklists:
Schedule same-day turnovers carefully. Back-to-back bookings are profitable but risky if cleaning runs late.
You need reliable contractors who respond quickly.
Create a contact list with:
Interview them before emergencies. Negotiate rates. Explain your business needs fast response times.
Use technology to handle:
Automation frees your time to grow the business instead of managing daily tasks.
Listing on platforms is not enough.
Airbnb and Vrbo use algorithms to rank listings.
Improve your ranking:
Top-ranked listings get 5-10x more views than page-two listings.
Reviews drive bookings. Properties with 50+ reviews book far more than those with 5.
Ask every guest for a review:
Respond to every review positive and negative. Professional responses to criticism show you care.
Acquiring new guests costs more than rebooking previous ones.
Offer returning guests:
Create an email list. Send seasonal promotions. Stay top-of-mind.
Connect with:
They refer guests when hotels are full or clients need temporary housing.
Track these metrics monthly:
Occupancy rate - Percentage of nights booked. Target 60-70% initially, 75-85% once established.
Average daily rate (ADR) - Total revenue divided by nights booked. Should increase as reviews improve.
Revenue per available rental (RevPAR) - ADR multiplied by occupancy rate. The most important metric.
Guest satisfaction - Review ratings and feedback themes.
Expenses - Track every cost. Identify areas to reduce spending without hurting guest experience.
Compare your numbers to local competitors. Are you underperforming? Investigate why.
Guest feedback reveals problems you miss. Read every review. Look for patterns in complaints.
One guest mentions slow WiFi? Maybe ignore it. Five guests mention it? Upgrade immediately.
Learn from others' failures:
Underestimating costs - Repairs, replacements, and maintenance always cost more than expected. Keep 10% of revenue in reserves.
Ignoring regulations - One complaint can shut down your business. Follow every rule.
Poor communication - Slow responses lose bookings and earn bad reviews.
Skipping professional photos - Amateur photos cut your bookings by 50% or more.
Inconsistent cleaning - One dirty property destroys reputation you spent months building.
Overpricing initially - Start competitive. Earn reviews. Then raise rates.
No business systems - Disorganized operators do not scale. Set up proper systems from day one.
Treating it like a hobby - This is a business. Approach it professionally.
Self-managing is more profitable but time-intensive.
You handle:
Expect 10-15 hours weekly per property.
Hiring property managers costs 20-30% of revenue but frees your time.
They handle everything. You collect checks.
A hybrid approach works well:
The vacation rental industry continues evolving rapidly.
Recent vacation rental market analysis shows millennials and Gen Z will account for 75% of Airbnb's traveler base by the end of 2025. These younger travelers prioritize unique experiences, sustainability, and technology integration.
Key trends shaping the market:
Remote work accommodations - Properties with dedicated workspaces and fast internet attract digital nomads and remote workers seeking extended stays.
Sustainable travel - Eco-friendly features like solar panels, energy-efficient appliances, and recycling programs appeal to environmentally conscious guests.
Experience-based stays - Guests want more than accommodation. They want local experiences, cooking classes, guided tours, and cultural immersion.
Technology expectations - Smart home features, contactless check-in, and seamless digital communication are becoming standard requirements.
Properties that adapt to these trends capture higher occupancy rates and can command premium pricing.
The market shows no signs of slowing. Research from Future Market Insights projects the global vacation rental market will reach $278 billion by 2035, growing at 9.8% annually.
Your timing to enter this market is strong.
Days 1-30: Planning and Setup
Days 31-60: Property Preparation
Days 61-90: Launch and Optimize
Your first few months will be stressful. Systems will fail. Guests will complain. Unexpected costs will appear.
This is normal.
Every successful vacation rental operator went through the same challenges.
The difference between success and failure is persistence through problems.
The vacation rental market is growing. Demand exceeds supply in most markets. Guests are ready to book.
But success requires more than listing a property.
You need:
Start small. Master one property before adding more.
Focus on reviews. They drive everything else.
Solve problems quickly. Guests remember how you handle issues, not the issues themselves.
The vacation rental business offers real income potential and flexibility. But it demands professionalism, attention to detail, and commitment to excellence.
You do not need hospitality experience or large capital. You need discipline, systems, and willingness to learn.
Ready to start?
Create your business plan this week. Research your market. Calculate your numbers.
Then take action.
Guestara provides the property management tools you need to run your vacation rental business efficiently. From calendar synchronization to automated guest messaging, our platform handles the details so you can focus on growth.
Explore Guestara's vacation rental management solutions
Learn how to start a profitable vacation rental business in 2025 with our step-by-step guide covering planning, legal setup, marketing, and daily operations.
The vacation rental market generated $107.87 billion globally in 2025.
You can claim your share.
But starting a vacation rental business requires more than listing a property online. You need a solid vacation rental business plan, the right property management tools, and a clear strategy to generate consistent rental income.
This guide walks you through every step to launch your short-term rental business successfully.
A vacation rental business involves renting properties for short periods days or weeks instead of months or years.
Your guests could be families on holiday, business travelers, or remote workers seeking temporary accommodation.
The difference between vacation rentals and hotels? You offer more space, privacy, kitchen facilities, and often a more local experience. This is why the short-term rental industry continues to grow while traditional hotels face increasing competition.
You can own vacation rental properties or manage them for other owners. Your income comes from nightly or weekly rates paid by guests who book through platforms like Airbnb, Vrbo, Booking.com, or direct bookings on your website.
Whether you want to start an Airbnb business, become a vacation rental host, or build a property management company, the fundamentals remain the same.
The numbers tell a compelling story about vacation rental profitability.
According to Statista's vacation rental market forecast, the global market is projected to grow at a 6.70% compound annual growth rate through 2030, reaching $149.19 billion. In the United States alone, the market will hit $21.08 billion in 2025.
Demand is outpacing supply. In the US, short-term rental demand grew 7.0% year-over-year while supply increased only 4.7%. This gap creates opportunities for new vacation rental operators.
You have several advantages over long-term rentals:
The average Airbnb vacation rental in the US earns $3,196 per month compared to $1,787 for traditional rentals.
You do not need years of hospitality experience.
But you do need specific qualities:
Problem-solving ability - Guests will have issues. WiFi fails. Appliances break. You need quick solutions, not panic.
Attention to detail - Cleanliness, amenities, and communication determine your reviews. Reviews determine your bookings and vacation rental revenue.
Financial discipline - Track every expense. Monitor occupancy rates. Adjust pricing based on data, not guesses.
Adaptability - Regulations change. Guest expectations evolve. Markets shift. You must pivot quickly.
Customer service mindset - You are competing with hotels. Your guest experience must exceed their standards.
Can you handle difficult guests professionally? Can you respond to inquiries within an hour? Can you fix problems at 11 PM?
If yes, you can succeed.
Do not skip this step.
A business plan forces you to calculate real numbers before you spend real money.
What does success look like for your vacation rental company?
Write specific numbers. "Make good money" is not a goal. "$8,000 monthly profit by month 12" is a goal.
Study these factors before buying or renting a property:
Location demand - Check tourism board statistics for visitor numbers. Are they increasing or decreasing? Is the area popular year-round or seasonal?
Competition analysis - Search Airbnb and Vrbo for similar properties. What are they charging? What amenities do they offer? What do their reviews say?
Supply vs demand - High demand with low supply means profit. High supply with low demand means losses.
Top US markets for 2025 include Orlando, Boston, and San Diego. But emerging markets often offer better opportunities with less competition.
Startup costs:
Monthly expenses:
Income projections:
Use tools like AirDNA or Mashvisor to estimate realistic income. Never assume 100% occupancy. Even successful operators calculate at 80% maximum.
A one-bedroom property earning $150/night at 65% occupancy generates $2,925/month before expenses. A three-bedroom at $280/night and 70% occupancy generates $5,880/month.
Your profit margin should be 10-20% after all expenses.
You have three options:
Own the property - Highest profit potential but requires significant capital. You need down payment, mortgage approval, and can handle market fluctuations.This traditional vacation rental investment model works best when you have access to financing.
Rental arbitrage - Lease a property long-term and sublet it short-term. Lower startup costs but you need landlord permission and a margin between long-term rent and short-term income.
Property management - Manage properties for owners in exchange for 20-30% of revenue. No property investment but you must prove you can generate more income than owners could themselves.
Many hosts start with arbitrage or management, then buy properties once profitable.
Regulations will make or break your business.
Cities like New York and Barcelona have strict restrictions. Others like San Diego have clear, friendly guidelines.
Check these regulations in your specific location:
In Denver, the property must be your primary residence. In London, you can rent your home for up to 90 days per year without planning permission.
Start your research early. Permit applications can take months.
Standard homeowners insurance does not cover short-term rentals.
You need:
Airbnb offers AirCover for hosts, but it has limitations. Consider additional policies from companies specializing in vacation rental insurance coverage.
Treat this like a real business because it is one.
Proper business structure protects your personal assets and simplifies taxes.
Location determines your success more than any other factor.
Consider these priorities:
Proximity to your home - Managing a property 3 hours away is possible but challenging. You need reliable local help for emergencies and cleanings.
Tourist attractions - Properties near beaches, ski resorts, theme parks, or city centers book more consistently. But they also face more competition.
Accessibility - Can guests reach your property easily? Is parking available? Can they walk to restaurants and activities?
Seasonality - Year-round destinations provide steady income. Seasonal locations have peak earnings but quiet months.
Future development - Research planned construction, new attractions, or infrastructure projects that could increase or decrease property values.
Who are you hosting?
Match your furnishings to your guest profile.
Essential items every property needs:
Add these for five-star reviews:
Invest in professional photography. Your listing photos determine whether guests click or scroll past.
The right property management software saves hours weekly and increases vacation rental revenue.
You need a centralized platform to manage everything:
Guestara unifies everything you need in a single platform that integrates with your current PMS, purpose-built for vacation rental operators.
Without proper software, you will make mistakes. Double bookings destroy guest trust and your reputation.
Guests expect convenient access:
Smart locks eliminate key handoff logistics and reduce lockout calls.
Your rates should change based on:
Manual pricing leaves money on the table. Automated tools like PriceLabs or Wheelhouse optimize rates to maximize occupancy and revenue.
More exposure means more bookings.
The largest platform with the most active travelers. Airbnb generated 448 million nights booked in 2024.
Pros:
Cons:
Owned by Expedia, Vrbo focuses on whole-home rentals for families.
Pros:
Cons:
International reach, especially strong in Europe.
Pros:
Cons:
Direct bookings mean no platform fees.
Create a simple website with:
You will not get high direct booking volume immediately. But over time, repeat guests and local searches add up.
Use channel management software to synchronize calendars across all platforms. Never manually update multiple sites.
Your listing either converts viewers into bookers or sends them to competitors.
Your title appears in search results. It must grab attention and include key details.
Bad: "Nice apartment in downtown" Good: "Modern 2BR Downtown Loft | Walk to Restaurants | Free Parking"
Include:
Start with your strongest selling point.
"Wake up to ocean views from every room in this completely renovated beachfront condo."
Answer these questions:
Use short paragraphs. Break up text with headers. Make it easy to scan.
Be honest. Do not promise amenities you lack. Disappointed guests leave terrible reviews.
Research comparable properties in your area.
Your price should reflect:
Price too high and you get no bookings. Price too low and guests question quality.
Start competitive, earn excellent reviews, then gradually increase rates.
Your photos are more important than your description.
Hire a professional photographer or learn these basics:
One professional photo shoot pays for itself with higher booking rates.
Reviews determine your success.
Respond to inquiries within one hour. Every hour of delay reduces booking probability.
Send these automated messages:
Personalize templates. Nobody wants robot responses.
Guests hate complicated check-in processes.
Provide:
The easier your check-in, the better your reviews start.
Go beyond basics.
Guests love finding:
Small touches create five-star experiences.
Something will go wrong. The WiFi fails. The dishwasher leaks. A neighbor complains about noise.
Your response determines your review.
Acknowledge problems instantly. Apologize sincerely. Fix issues quickly or offer alternatives.
Keep a list of reliable contractors for emergencies plumber, electrician, locksmith, HVAC technician.
You cannot manually manage every task as you grow.
Clean properties get booked. Dirty properties get destroyed by reviews.
Professional cleaners are not optional. They cost $80-150 per turnover depending on property size and location.
Provide detailed checklists:
Schedule same-day turnovers carefully. Back-to-back bookings are profitable but risky if cleaning runs late.
You need reliable contractors who respond quickly.
Create a contact list with:
Interview them before emergencies. Negotiate rates. Explain your business needs fast response times.
Use technology to handle:
Automation frees your time to grow the business instead of managing daily tasks.
Listing on platforms is not enough.
Airbnb and Vrbo use algorithms to rank listings.
Improve your ranking:
Top-ranked listings get 5-10x more views than page-two listings.
Reviews drive bookings. Properties with 50+ reviews book far more than those with 5.
Ask every guest for a review:
Respond to every review positive and negative. Professional responses to criticism show you care.
Acquiring new guests costs more than rebooking previous ones.
Offer returning guests:
Create an email list. Send seasonal promotions. Stay top-of-mind.
Connect with:
They refer guests when hotels are full or clients need temporary housing.
Track these metrics monthly:
Occupancy rate - Percentage of nights booked. Target 60-70% initially, 75-85% once established.
Average daily rate (ADR) - Total revenue divided by nights booked. Should increase as reviews improve.
Revenue per available rental (RevPAR) - ADR multiplied by occupancy rate. The most important metric.
Guest satisfaction - Review ratings and feedback themes.
Expenses - Track every cost. Identify areas to reduce spending without hurting guest experience.
Compare your numbers to local competitors. Are you underperforming? Investigate why.
Guest feedback reveals problems you miss. Read every review. Look for patterns in complaints.
One guest mentions slow WiFi? Maybe ignore it. Five guests mention it? Upgrade immediately.
Learn from others' failures:
Underestimating costs - Repairs, replacements, and maintenance always cost more than expected. Keep 10% of revenue in reserves.
Ignoring regulations - One complaint can shut down your business. Follow every rule.
Poor communication - Slow responses lose bookings and earn bad reviews.
Skipping professional photos - Amateur photos cut your bookings by 50% or more.
Inconsistent cleaning - One dirty property destroys reputation you spent months building.
Overpricing initially - Start competitive. Earn reviews. Then raise rates.
No business systems - Disorganized operators do not scale. Set up proper systems from day one.
Treating it like a hobby - This is a business. Approach it professionally.
Self-managing is more profitable but time-intensive.
You handle:
Expect 10-15 hours weekly per property.
Hiring property managers costs 20-30% of revenue but frees your time.
They handle everything. You collect checks.
A hybrid approach works well:
The vacation rental industry continues evolving rapidly.
Recent vacation rental market analysis shows millennials and Gen Z will account for 75% of Airbnb's traveler base by the end of 2025. These younger travelers prioritize unique experiences, sustainability, and technology integration.
Key trends shaping the market:
Remote work accommodations - Properties with dedicated workspaces and fast internet attract digital nomads and remote workers seeking extended stays.
Sustainable travel - Eco-friendly features like solar panels, energy-efficient appliances, and recycling programs appeal to environmentally conscious guests.
Experience-based stays - Guests want more than accommodation. They want local experiences, cooking classes, guided tours, and cultural immersion.
Technology expectations - Smart home features, contactless check-in, and seamless digital communication are becoming standard requirements.
Properties that adapt to these trends capture higher occupancy rates and can command premium pricing.
The market shows no signs of slowing. Research from Future Market Insights projects the global vacation rental market will reach $278 billion by 2035, growing at 9.8% annually.
Your timing to enter this market is strong.
Days 1-30: Planning and Setup
Days 31-60: Property Preparation
Days 61-90: Launch and Optimize
Your first few months will be stressful. Systems will fail. Guests will complain. Unexpected costs will appear.
This is normal.
Every successful vacation rental operator went through the same challenges.
The difference between success and failure is persistence through problems.
The vacation rental market is growing. Demand exceeds supply in most markets. Guests are ready to book.
But success requires more than listing a property.
You need:
Start small. Master one property before adding more.
Focus on reviews. They drive everything else.
Solve problems quickly. Guests remember how you handle issues, not the issues themselves.
The vacation rental business offers real income potential and flexibility. But it demands professionalism, attention to detail, and commitment to excellence.
You do not need hospitality experience or large capital. You need discipline, systems, and willingness to learn.
Ready to start?
Create your business plan this week. Research your market. Calculate your numbers.
Then take action.
Guestara provides the property management tools you need to run your vacation rental business efficiently. From calendar synchronization to automated guest messaging, our platform handles the details so you can focus on growth.
Explore Guestara's vacation rental management solutions
Yes if you price with data and control costs. Use the formula: Profit = ADR × Occupancy × Nights − (All expenses & fees). Example: at $150 ADR and 65% occupancy, revenue is $2,925/month before expenses; target 10–20% net margin after cleaning, utilities, platform commissions, software, and reserves. Scale by adding units only after consistent reviews and RevPAR growth.
Budget startup costs (furnishing, décor, photos, insurance, permits, supplies) plus monthly costs (mortgage/rent, cleaning, utilities, software, platform fees, maintenance, marketing). Capital-light options: rental arbitrage (with written landlord consent) or property management (20–30% revenue share). Always model worst-case occupancy (60–65%) and keep a 10% reserve for repairs.
Rules vary by city/state. Typically you’ll need: short-term rental license/permit, adherence to zoning/occupancy rules, safety equipment (smoke detectors, extinguisher), and you must collect/remit lodging/occupancy taxes. Some cities limit nights or require primary residence status. Get written approvals (HOA/landlord), maintain liability + contents insurance, and register your business entity and EIN.
Use a Property Management System (PMS) with channel/calendar sync, automated guest messaging, cleaning tasking, and financial reporting; add dynamic pricing (e.g., by day of week, events, season), smart locks (unique codes per booking), and noise/thermostat devices (disclosed). A unified solution like Guestara can integrate PMS workflows so you avoid double-bookings and manual errors.
Nail the fundamentals: pro photos (20–25 images), a keyword-rich title (“2BR Downtown Loft • Walk to Metro • Free Parking”), scannable description, competitive launch pricing, and <1-hour response time. Keep cancellations at zero, earn early 5-star reviews, update calendars frequently, and enable length-of-stay and lead-time discounts. Improve RevPAR by combining higher ADR on peak nights with steady occupancy midweek
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