10 Proven Short Term Rental Investing Tips to Minimize Costly Mistakes
Avoid Costly Mistakes When Acquiring Your Short-Term Rental
Acquiring a short-term rental (STR) is exciting, but the wrong moves can cost you time and money. I’ve made my fair share of mistakes and learned valuable lessons along the way. Here’s how to avoid common pitfalls and set yourself up for success from day one:
- ✅ Do Your Homework – Research the market, neighborhood, and local regulations. Analyze competitor listings, occupancy rates, and pricing. Verify expert advice and build a solid pro forma to assess financial viability.
- ✅ Be Present for Inspections – Attend the home inspection to ask questions, identify issues, and assess the property firsthand. Walk the exterior, check ceilings and floors, and talk to inspectors for insights on potential repairs.
- ✅ Don’t Skip Additional Inspections – Radon, well, septic, termites, swimming pool, HVAC—these “optional” inspections can prevent expensive surprises down the road.
- ✅ Visit at Different Times – Arrive early and visit at various times of the day to gauge traffic patterns, neighborhood activity, and ease of access for guests.
- ✅ Know Your Local Attractions – Research the best eateries, beaches, rooftop restaurants, and tourist spots. Understanding what draws tourists will help you market your rental and host your guests effectively.
- ✅ Stay at a Nearby Airbnb – Experience the guest journey firsthand and take notes on what works—and what doesn’t—in your market.
- ✅ Engage with Locals – Talk to neighbors and business owners for insights into the community, local rules, and hidden gems. Make friends with your neighbors early.
- ✅ Document Everything – Take photos, videos, and detailed measurements to streamline furnishing and design decisions.
- ✅ Start Hosting Prep from Day One – Think like a host early on. Plan your layout, amenities, and key “money shots” to create an inviting guest experience.
- ✅ Invest Wisely in Amenities – Before dropping thousands on a hot tub, game room, or pickleball court, calculate the ROI. Consider maintenance costs, guest demand, and how you'll market them effectively.
Need help executing these STR investing tips?
❌❌Mistakes to Avoid ❌❌:
🚫 Buying sight unseen
🚫 Waiving the home inspection contingency
🚫 Not attending the inspection personally
🚫 Failing to consider different perspectives—think like an investor, host, and guest (adults, children, pets)
🚫 Overlooking hidden maintenance concerns (water damage, mold, structural issues)
🚫 Missing improvement opportunities that boost value and guest experience
🚫 Ignoring safety features that could impact guest satisfaction and liability
By following these steps, you’ll avoid costly pitfalls and build a profitable, sustainable STR business. Ready to take the next step with confidence? Let’s make it happen!