How to Successfully Run a Short Term Rental Business

How to Successfully Run a Short Term Rental Business

by Brooke

If you want to earn money from a home or an apartment, then you can rent the buildings on a short-term basis to travelers. Short-term rentals in large cities and small towns are popular right now, but you must follow certain guidelines to have a successful business.

Understand Local Zoning Regulations

Some cities will restrict short-term leasing in private residences, and if you rent from a landlord or an apartment manager, then they may not permit having short-term renters. Contact your county’s zoning board to determine what the regulations are for offering vacation rentals on Airbnb or VRBO. Failing to follow the proper regulations can lead to financial fines from your local law officials.

Have the Proper Types of Insurance

It is essential to protect your finances with the proper types of insurance for your real estate property. While you have insurance for a home or an apartment while you are living there, the policy may not cover the cost of damages that occur from vacation renters. Contact your insurance agent to confirm that you have the correct coverage for a property. In addition, you should have financial protection for any lawsuits that could happen if a vacation renter is injured on your property.

Make the Apartment or Home Look Perfect

You will want to post photographs online for the vacation rental, so you will want the space to look its best. Learn how to stage the home or apartment in the right way to make it look inviting to potential vacation renters. There are websites that teach you how to make a room look better, or alternatively, you can hire a staging team professional who knows how to make a room look attractive to renters.

Have a List of Rules for the Vacation Renters

Before accepting payment from a vacation renter, you should have a list of rules that the individual must follow. Some of the rules can include not permitting any pets or forbidding smoking in the apartment or home. You can also limit the number of people who can stay in the rental to avoid having situations where someone is having loud parties with illegal activities.

Make Sure to Pay Your Fees

If you are advertising a vacation rental on VRBO or Airbnb, then make sure to follow through by paying your fees. When an online short-term vacation rental company determines that you aren’t paying the appropriate fees, it can ban you from using its website again.

How Much to Charge?

The amount that you can charge for vacation rentals varies. It can depend on the location of the home or apartment along with any special events that are occurring in the area. A larger apartment or home will have a higher rental cost because friends or relatives can stay in the place at the same time.

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