Location Research
Explore the thrilling possibilities that lie ahead as you embark on the journey of discovering the perfect location for your short-term rental. Dive into these questions below as you kickoff your location research and begin the adventure of discovering potential markets that might work for your short-term rental business.
The choice of location is not just important; it’s your first step toward a successful venture in the world of short-term rentals.
Tourists
How many tourists visit your market annually?
Local Attractions
What is the proximity of your potential short-term rental to local attractions?
Real Estate
What are the costs of properties in this market?
Is there shopping and dining nearby?
Is the area walkable or is a car necessary?
Is public transportation available and easily accessible?
What regular major events take place in this area?
Is it near mountains, the beach, or both?
What attracts tourists to this area?
How long is high season and low season?
What is the weather like year-round?
Which neighborhoods are good options and safe?
How close is local transportation (airport, train, etc)?
Does the location align with your target guest?
What are the rent prices, if doing rental arbitrage?
What is the cost of maintaining a property in this area?
Is the community welcoming to short-term rentals?
Are there any upcoming projects for the area that can positively impact property values?
What are the noise levels in neighborhoods you’re considering?
What are insurance implications for short-term rentals in the area?
What’s the quality of internet access in the area?
Is there ample parking available for guests?
Are there opportunities to collaborate with local businesses?
Unlock a wealth of location insights by exploring local city websites, tourism bureaus, Google Maps, and various platforms rich with tourism data.
While it may seem like an avalanche of information, harness the power of organization with tools like Trello or Notion and transform this information into a strategic asset, ready at your fingertips to shape a roadmap for your short-term rental success.
Market Data
Uncover the potential for profitability in your market by delving into a set of crucial questions that will help shape the destiny of your short-term rental venture.
Empower yourself with the profound understanding of the significance that data holds, strategically positioning yourself for great success. Your journey to prosperity begins with these pivotal considerations.
How many short-term rentals are in the area?
What’s the most popular size (1 bedroom, 2 bedroom, etc)?
How many nights per month are needed to break even?
What is the average occupancy rate?
What is the occupancy rate on different days of the week?
What is the average daily rate in the area?
What is the cash on cash return?
What is the cap rate?
What’s the projected monthly, yearly revenue?
What are the local short-term rental regulations?
What is the guest feedback about other rentals in the area?
What type of travelers are attracted to this area?
What are the booking patterns throughout the year?
How are the property appreciation rates in this market?
What is the job growth and unemployment rates like in this area?
What is the cost for acquiring a new guest?
Where are guests traveling from to visit this area?
What is the lead time between booking and check-in?
What are costs for cleaning services in this market?
Will you need a property manager and what’s the cost?
Immerse yourself in short-term rental insights by visiting sites like rabbu, airdna, mashvisor and of course airbnb to gain a wealth of knowledge about your potential market.
And for a guide through specific markets, including local attractions, state-specific short-term rental insights, and links to city regulation resources, explore my local markets page.
