What to Look for in a Possible STR Investment Property

One of the most promising investment avenues you have today is short-term rental (STR) properties. With the continuous rise of online booking platforms, such as Airbnb and HomeAway, investing in properties where travelers can stay for short periods presents a great opportunity to make big profits. However, choosing an STR investment property is not as easy as it seems. A lot of factors come into play, and it is important that you choose the right one if you want to generate good rental income. In this blog, we’ll discuss what to look for in a possible STR investment property.

Location

Location is everything when it comes to STR properties. It is essential to choose a property that is in a location that has a high demand for short-term rentals. Convenient accesses to tourist destinations, transportation hubs, and business areas are some of the considerations when choosing the right location. With a prime location, you can command higher rental rates, and your property will always be in demand.

Property Type

The right property type can make all the difference when it comes to STR investment properties. Most experts recommend owning a single-family home or condo as it will allow you to have greater control over the property and generate higher rental income. Smaller-sized properties tend to do better because they appeal to small groups of travelers, and they are also typically easier to manage.

Amenities and Features

Investing in properties that have appealing and modernized amenities and features like a hot tub, swimming pool, or vacation play area can give it an edge in the crowded rental market. Properties with full kitchens, convenient parking, and free Wi-Fi are also more attractive to travelers and are essential amenities that should be considered.

Regulatory Environment of the Area

It is your responsibility as a property owner to understand the local regulations and laws that govern STR properties in a particular area. Some states and cities regulate these types of accommodations, and some even prohibit them. So before you invest, you need to do your due diligence to ensure that your property is compliant with all relevant regulations. Some of the regulations to consider include, local taxes, permits, and short-term rental policies.

Management and Maintenance Options

As an STR property owner, the key to maintaining a good rental income is by having good property management and maintenance service. While some investors manage their property on their own, it may not be feasible for all owners. Therefore, consider hiring a professional property management company to handle bookings, maintenance, and cleaning. Professional property management will ensure that your guests are well-served, and your property is well-maintained.

Investing in an STR property can be one of the best investment decisions you’ll make, or it can turn out to be a risky affair. However, if you carefully consider these key factors before investing, you can help mitigate the risks while guaranteeing a highly profitable venture. Remember, you need to think like a traveler, keep up with trends in the rental market, and offer the right amenities to boost rental income. By doing your research and selecting the ideal property that meets the demands of your target market, you can set yourself up for long-term success in the STR investment market.