How to Determine a Good Area for a Short-term Rental

 Owning a successful short-term rental home is more than just finding a great property. Choosing a home to invest in is the only aspect of the 
investment; the area is just as important. Just as you would before opening a store or restaurant, careful analysis should take place to determine the 
opportunities an area offers. Here are a few key factors to consider:
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Local Demand and Tourism – The best locations have some kind of independent demand, such as amusement parks, beaches or mountains, 
or other popular vacation destinations.
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Amenities – People enjoy pools, parks, and shopping while vacationing. Consider what activities and amenities are available to renters.
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Local Regulations – Carefully investigate the local laws and regulations governing short-term rentals. Some communities only allow 30+ 
day rentals or even longer (if at all).
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Competition – Review existing short-term rentals in the area and check pricing. Spot check a few of the most appealing for availability to 
learn about vacancy rates. Make sure the prices and availability fit with your cost model.
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Seasonality – Consider whether the area has peak seasons with slower months in between. Understand the trends and plan for lower 
occupancy and pricing during the low season.
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Growth and Development – Understand the future development plans in the community. Planned improvements may offer increased 
desirability for the rentals.
 A short-term rental can be a powerful addition to your investment portfolio. 
Carefully selected and managed, these rentals can offer significant income while appreciating in value over time. Before choosing a home, ensure 
success by carefully considering the location. The desirability of the area is one of the most crucial factors in a successful short-term rental business.