STR Hosting Resources

Starting your short-term rental journey can be overwhelming, but with the right preparation, you can succeed. Here are the essential steps:

• Research Local Regulations: Check zoning laws, permit requirements, and occupancy limits in your area.
• Prepare Your Property: Invest in quality furniture, linens, and amenities that guests expect.
• Set Competitive Pricing: Research comparable listings in your area and adjust for seasonality.
• Create Professional Listings: High-quality photos and detailed descriptions increase bookings.
• Establish House Rules: Clear expectations prevent misunderstandings and protect your property.
• Automate Operations: Use smart locks, automated messaging, and professional cleaning services.

Seasonal demand patterns significantly impact your STR revenue. Understanding these patterns helps you optimize pricing and occupancy.

Common Seasonal Patterns:

• Beach Destinations: Peak season in summer (June-August), shoulder seasons in spring and fall, low season in winter.
• Ski Resorts: High season during winter months (December-March), very low occupancy in summer.
• City/Urban: Consistent demand year-round with peaks during major events, conferences, and holidays.
• Warm Weather Retreats: Strong winter demand from snowbirds, lower summer occupancy.

Use our Seasonality Revenue Planner to model your specific market's patterns.

Deciding between short-term and long-term rentals depends on multiple factors beyond just income potential.

Financial Considerations:

• Revenue Potential: STRs typically generate 2-3x more revenue but with higher operating costs.
• Occupancy Risk: STR income fluctuates with occupancy; LTRs provide predictable monthly income.
• Operating Expenses: STRs incur platform fees, cleaning costs, utilities, and frequent maintenance.
• Tax Implications: STRs may qualify for different deductions; consult a tax professional.

Effort and Management:

• Time Commitment: STRs require daily communication, frequent cleanings, and continuous optimization.
• Property Wear: Higher turnover means more frequent repairs and replacements.
• Regulations: STR regulations are changing rapidly in many markets.

Compare your specific numbers with our STR vs Long-Term Comparison Calculator.

Dynamic pricing is crucial for maximizing STR revenue while maintaining high occupancy rates.

Pricing Best Practices:

• Base Rate Strategy: Set a competitive base rate for mid-season periods, then adjust up/down for demand.
• Last-Minute Discounts: Lower rates for bookings within 3-7 days to fill gaps.
• Early Bird Specials: Offer discounts for bookings made 60+ days in advance.
• Minimum Stay Requirements: Increase minimums during peak seasons to reduce turnover costs.
• Weekend vs Weekday: Price higher for Friday/Saturday nights in leisure destinations.
• Event-Based Pricing: Research local events and adjust rates 2-3x during major conferences, festivals, or sports events.

Use our Occupancy Rate Optimizer to find your ideal price point.

ADR (Average Daily Rate)

The average rental income per occupied night, calculated as total rental income divided by number of nights booked.

RevPAR (Revenue Per Available Room)

A key metric calculated as ADR × Occupancy Rate, showing overall revenue performance including vacant nights.

Occupancy Rate

The percentage of available nights that are booked, calculated as (nights booked ÷ nights available) × 100.

Break-Even Occupancy

The minimum occupancy percentage needed to cover all expenses and avoid losing money.

Turnover

The process of cleaning and preparing the property between guests. Higher turnover means more bookings but higher costs.

Shoulder Season

The period between peak and off-peak seasons, typically with moderate demand and pricing.

Minimum Stay Requirement

The minimum number of consecutive nights guests must book, often used to reduce turnover frequency.

Host Fee vs Guest Fee

Platform fees charged to hosts (typically 3%) vs fees charged to guests (typically 14-20%) by booking platforms.