"If you’re thinking about buying your next short-term rental (STR), you already know it’s more than just picking a property you like — it’s about running the numbers, understanding the market, and playing the long game. As someone who looks at potential short-term rental…"
If you’re thinking about buying your next short-term rental (STR), you already know it’s more than just picking a property you like — it’s about running the numbers, understanding the market, and playing the long game. As someone who looks at potential short-term rental investments every day, I’ve seen what makes properties succeed — and what makes them sit empty.
Here are my Top 5 Tips for choosing your next winning Airbnb:
1. Start with the Data, Not Your Gut
Before falling in love with a property, zoom out and look at the market performance first. Tools like AirDNA and Pricelabs Market Dashboards, can show you:
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Average Daily Rate (ADR)
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Occupancy rates
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Seasonality trends
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Revenue per available room (RevPAR)
Bonus tip: Look for markets with strong year-round demand and properties that perform well on average — not just standout listings.
2. Target Markets With Room to Grow
Yes, cash flow is king — but appreciation and demand trends matter too. The best investments often sit in emerging vacation markets with:
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Steady inbound population or tourism growth
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Moderate home prices relative to rental revenue
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Limited STR saturation (but increasing visitor demand)
These “up-and-coming” locations often offer higher ROI with less competition than oversaturated metros.
3. Dig Deep Into Local Regulations
No matter how great a market looks, short-term rental rules can make or break your investment. Just because a city allows short-term rentals now doesn’t mean that will always be the case. Make sure you complete your due diligence and your investment is protected from future regulation.
Before purchasing, always research:
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Permit availability or caps
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Zoning and licensing laws
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Host residency or minimum night stay rules
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Pending legislation that could impact STRs
Bonus Tip: Look for markets with clear, consistent, and enforceable STR regulations — those are often the most sustainable for long-term operators.
4. Prioritize Travel Drivers That Create Year-Round Demand
The best STRs aren’t just pretty homes — they’re located in places people travel to consistently. That includes:
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Natural attractions (beaches, national parks, lakes)
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Event-driven areas (colleges, venues, festivals)
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Business or medical hubs (for mid-term stays)
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Multi-season destinations (think hiking and skiing)
Bonus Tip: Look for areas where mid-week and off-season bookings are still strong — that’s a key signal of resilient demand.
5. Know Your Expenses — All of Them
It’s easy to get excited about projected revenue, but your true profitability lies in the details of your expenses. Don’t forget to factor in:
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STR-specific insurance (usually more expensive than standard homeowners)
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Cleaning and turnover costs
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Lawncare, snow removal, and pest control
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Utilities, internet, and streaming services
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Maintenance, supplies, and furnishings
Not building these into your underwriting from the beginning can be the difference between monthly profit and monthly pain.
Bonus Tip: Run conservative projections. If the deal doesn’t work with real-world costs, it’s not the right property.
Smart STR growth comes from making informed buying decisions — not just reacting to trends. If you combine reliable data, clear regulations, and sustainable travel demand, you’ll be in a great position to scale profitably.
