Short-Term Rentals
Short-term rentals can significantly outperform long-term rentals in the right markets — but they require more active management and strategic operations.
What is a short-term rental?
A property rented for stays of less than 30 days. Includes vacation rentals, Airbnb properties, and corporate housing. Higher revenue potential but more operationally intensive.
Airbnb vs direct booking
Airbnb charges 3-15% in fees. Direct booking through your own platform (like ListMyCity) eliminates those fees, builds your brand, and gives you control over the guest relationship.
Occupancy rate
The percentage of available nights that are booked. A 70% occupancy rate means 21 out of 30 nights are booked in a month.
Average Daily Rate (ADR)
The average price per booked night. ADR = Total Revenue / Number of Nights Booked. Optimizing ADR is key to maximizing STR income.
RevPAR
Revenue Per Available Room — Total Revenue / Total Available Nights. Combines occupancy and ADR into one metric. The best single performance indicator for STRs.
Dynamic pricing
Adjusting nightly rates based on demand, seasonality, events, and competition. Tools and algorithms optimize pricing to maximize revenue across all seasons.
Cleaning systems
Reliable turnovers are critical. Build systems with cleaning teams, checklists, quality inspections, and automated scheduling to maintain guest satisfaction.
Guest communication
Automate messages for booking confirmation, check-in instructions, mid-stay check-in, and checkout. Fast response time and clear communication drive reviews and repeat bookings.
Local regulations
STR regulations vary by city and state. Research permits, licenses, taxes, and zoning requirements before acquiring any STR property.
Direct booking advantages
No platform fees, control over branding, direct guest relationships, repeat booking potential, and independence from platform algorithm changes.