Sourcing the right property for the short-term rentals space involves a combination of strategic planning, market research, and an understanding of guest preferences.
Here are some tips to help you source the right property:
Location, Location, Location
It’s the name of a popular TV show for a reason. You need to choose a property in a desirable location for holiday rentals. Consider proximity to tourist attractions, business centres, public transportation, and amenities. A convenient location can attract more guests and help to ensure you obtain the necessary funding from mortgage providers.
Research local regulations
The ‘R’ word is all the rage in the short-term rental world. At the start of your journey, it’s vital to understand any local regulations and zoning laws related to your investment. Compliance with legal requirements is crucial to avoid potential issues in future.
Know your target audience
Identify your target audience and tailor the property accordingly. For example, a family-friendly property might need different features than a property targeting business travellers or vacationing couples.
Evaluate property size and layout
Consider the size and layout of the property. A well-designed space that maximises functionality can enhance the guest experience. Ensure there are enough sleeping arrangements, bathrooms, and common areas.
Understand market demand
Analyse the demand for short-term rentals in the area. Research occupancy rates, seasonal variations, and market trends. Choose a property type that aligns with the local market demands.
Conduct a thorough financial analysis. Consider the purchase price, ongoing maintenance costs, property taxes, and potential rental income. Ensure the property is financially viable as a short-term rental – and make sure you always have that rainy-day fund handy (as we mention in length in our free e-book for hosts and property managers).