What to Consider in Buying a Short-Term Rental

If you’re thinking about buying a short-term rental, there are a few key considerations to ensure that you make a smart investment. Here are the top factors to keep in mind when buying a short-term rental:


One of the most important factors to consider when buying a short-term rental is the location. The property should be situated in an area that is attractive to tourists or business travelers, with easy access to local attractions, restaurants, and other amenities.

Size and layout

The size and layout of the property are also important factors to consider. The property should have enough bedrooms and bathrooms to accommodate multiple guests, and the layout should be functional and comfortable.

Also, consider the market for the short-term rental. Some areas are meant for families, some for 1-2 people getaways. Market demographics will help determine the optimal size and layout for your short-term rental.


The condition of the property is another important factor to consider. The property should be in good condition, with no major repairs or renovations needed. This will help to ensure that the property is ready for guests as soon as possible.

You may also consider refurbishing and renovating a home. Your out-of-pocket costs will be higher, but you’ll likely pay less upfront for the home. Another benefit to renovating a home for short-term rental is modernizing and optimizing the home for the current market demographics. Doing this may unlock a lot of hidden potential.


Amenities are an important selling point for short-term rentals, so it’s important to consider what amenities the property offers. This could include things like a pool, hot tub, outdoor space, or other features that will make the property more attractive to guests.

Each market will dictate what the most desirable amenities are.


In some areas, local governments may have strict regulations on short-term rentals, including rules about who can operate a short-term rental, how long guests can stay, and where short-term rentals can be located. For example, some cities have regulations that limit the number of nights that a property can be rented, or require short-term rental operators to obtain a license or permit.

Additionally, some areas may have zoning regulations that limit where short-term rentals can be located. For example, some cities may have rules that restrict short-term rentals in residential areas, or require them to be located in certain zones or districts.

Revenue potential

This goes without saying. You should consider the potential revenue of the property. This will depend on factors like the location, size, regulation, and amenities, as well as the demand for short-term rentals in the area. It’s important to do your research and understand the potential revenue of the property before making an investment.

Overall, these are the top factors to consider when buying a short-term rental. By carefully considering these factors, you can make a smart investment and maximize the potential return on your property.