How To Start A House Rental Business?

The short-term house rental is a hot business today.

It is expected to generate a total revenue of $21.08 billion (US) by the end of 2025. This revenue is soon gonna be $24.78 billion (US) by 2029, with an annual growth of 4.12%.

The interesting part? More than 85% of the total revenue in the market will be generated via online sales (or online platform, in other words).

So, if you’re thinking of starting an STR rental venture, you should go for it. After all, you can earn significant profits, regardless of whether you rent your place on which platforms.

But before you do it, make sure you know the right way of doing so.

If you don’t, this guide is gonna help you a lot. We have gone through the whole process, tips and tricks, available platforms, and much more. Read on to learn!

Should You Get Into STR House Rental Business?

The short answer is YES. You should go into the house rental business.

Why? The whole credit goes to the upcoming demand.

The short-term rental market is expected to grow at an annual rate of 19.1% between 2022 and 2032, which will increase demand for rentals.

The growth of tourism and the popularity of vacation rentals are the key reasons behind it.

Because more tourists and travelers will book short-term stays, it can be a good opportunity for you to get into the industry and earn your part.

How Can You Start Your STR House Rental Business?

Here are a few tips and tricks to help you start your short-term house rental:

Select The Right Property
Check Local STR Laws
Create a Business Plan
Prepare the Property
List the Property on STR Platforms
Set The Right Price
Set Up Operations
Market Your STR

1. Select The Right Property

Not every home or apartment is good to rent out for short-term rentals.

Tourists and travelers book short-term stays. They always want a place that is near the beach, parks, downtown area, hospitals, business district, transportation, etc.

So, the first (and very important) step is to select a property that is close to popular spots.

Don’t forget to check the demand in the area. Two websites that can help you check the rental performance in an area are AirDNA and Mashvisor.

If you plan to buy the property, consider your budget and financing options.

If you plan to lease, make sure the lease allows subletting.

Have multiple options? Go for a property that is easy to maintain and clean. It is even better if it already has amenities like Wi-Fi, parking, air conditioning, security devices, etc.

DO NOT choose a property located in a remote or hard-to-access area. These properties not only attract fewer guests but are also more difficult to maintain.

2. Check Local STR Laws

Along with the location, check the local rental laws related to short-term rentals.

Different states and cities have different rules for short-term rentals. Some allow them freely, while others have restrictions or bans.

For example, New York doesn’t allow owners or tenants to rent out a property to visitors if the stay is less than 30 days, regardless of whether the host lives in the building.

The same can go for many other states or cities as well.

Some cities even have zoning laws. These laws decide what types of activities are allowed in different parts of a city. Some cities only allow STRs in specific zones or limit the number of nights per year a property can be rented.

If your state allows STR, ensure no zoning laws in your area stand against it.

If your property is part of an HOA (Homeowners’ Association), follow their rules as well.

You may also need to apply for a permit or license to operate legally.

If you rent the property yourself, double-check your lease—many do not allow subletting. In some cities, only primary residences can be used for short-term rentals.

This means you must live there most of the year.

3. Create a Business Plan

Running a short-term rental is more than just listing a property online.

It is a real business, and it needs to be treated like that. You need to keep everything organized, make profits from it, and grow over time.

Thinking of your STR as a business starts with creating a business plan.

A business plan helps you map out your goals, your strategy, and your expected income and expenses. It doesn’t have to be super formal, but it should include some key points.

Along with the business plans, you should have:

An operation plan
A marketing plan
A financial plan (or revenue management)

An operation plan includes your targeted guests and details about your target market—for example, families, business travelers, solo tourists, etc.

Then plan how much you’ll invest upfront (buying or furnishing the property), how much you’ll charge per night, and how you’ll manage daily tasks.

Include a marketing plan—where you’ll list the property and how you’ll promote it.

In addition, plan out cleaning, maintenance, and managing guest communication.

At the end of the planning phase, include a backup plan for slow months or unexpected issues like repairs or cancellations.

4. Prepare the Property

Have you got a property you have long awaited? Make it guest-ready, then.

Start with the basics: furniture, beds, kitchen equipment, towels, bathroom essentials, etc.

Everything should be clean, comfortable, and modern. If you already have any of these things on the property, make sure they are ready to use.

Think like a guest here—what would you want if you stayed there?

Embed the #1 secret to get 5-star reviews: decorate the space with a cozy feel.

Safety is another must. Install smoke detectors, carbon monoxide alarms, fire extinguishers, and first aid kits.

Focus on making the checking-in process smooth. Install smart devices like keyless locks, smart thermostats, and exterior security cameras (only outside, to respect privacy).

Stock up on things like toilet paper, soap, and cleaning supplies.

If you want to go the extra mile, add things like coffee makers, board games, or guidebooks with local tips. Make sure everything works, including appliances, lighting, and plumbing.

5. List the Property on STR Platforms

Once everything is ready, list your property on the right platforms.

There are multiple OTA platforms to list your STR properties. While some hosts use one platform, the best approach is to use them all simultaneously to get maximum bookings.

The only trick (if you go for the second approach) is to sync your calendars properly.

List your property on Airbnb in the first place, followed by Vrbo, Booking.com, Expedia, and so on. (Read the next section in this guide for more details.)

Your listing should be detailed and honest.

Include high-quality photos, a clear title, and a detailed description of the space, location, and rules. Mention all the amenities you provide. Highlight what makes your place special—maybe it’s the view, the location, or the decor.

Keep your calendar updated—availability should match your actual schedule.

Good listings get more attention; the more platforms you’re on, the more eyes you’ll reach.

6. Set The Right Price

After the attractive property pictures, the second thing that attracts the most guests is its price.

Wouldn’t you go for a property that costs less but offers the same features as others? If your answer is yes, it means pricing is important.

If you charge too much, people will book elsewhere. If you charge too little, you may not make enough profit—or worse, attract bad guests.

The key here is to be competitive. Find a balance between value and your earnings.

Go through the other properties listed on the platform, see what features they offer, and check what other similar properties charge in your area.

Look for ones with similar size, location, and amenities.

You can even use tools like Airbnb’s Smart Pricing, PriceLabs, or Wheelhouse to help you adjust rates as per demand, holidays, weekends, and local events.

Don’t just set a flat rate for every day of the year.

Another smart move is to adjust your price based on your booking calendar. If you’re booked out far in advance, increase your cost. If you’re not getting bookings, lower it.

Offer discounts for longer stays or last-minute bookings to keep your calendar full.

7. Set Up Operations

When you start getting the bookings, put a system in place to manage everything.

This is what operations are all about.

Start with a cleaning schedule. When a guest checks out, the first thing you should do is to clean the property yourself or hire someone for the job.

The next step is to make communication smooth and on time with the guest.

Set up an automated message system to confirm bookings, provide check-in instructions, and thank your guests after they leave.

For the pre-booking or between-stay conversation, you can keep a mobile with yourself to reply all the times or hire a virtual assistant for it.

Create a welcome book or digital guide that includes house rules, Wi-Fi password, emergency details, local tips, and anything you want them to know.

Don’t forget maintenance. Keep a list of trusted handymen, plumbers, and electricians. You’ll need them sooner or later.

Regularly check the property yourself or have someone do it to spot problems early.

8. Market Your STR

Use marketing to stand out from the thousands of other listings out there.

The first step is to ensure your online listings are well-optimized.

Use clear, catchy titles and upload high-quality photos. Write descriptions that answer common guest questions and highlight what makes your place special.

Next, promote your rental on social media.

Create an Instagram or Facebook page to post updates, share guest reviews, and show off your space. You can even join local travel or real estate groups to connect with potential guests.

It is also smart to build your own website for direct bookings. This helps you avoid platform fees and lets you control your brand.

Offer special deals for returning guests or longer stays. Ask happy guests to leave reviews, and always respond to feedback.

The more positive reviews you get, the higher your property will rank in search results.

Remember: the better your marketing, the more bookings you’ll get—and the more successful your business will be.

What Are The Platforms To List Your Properties?

As mentioned earlier, 85% of the STR revenue is generated via online bookings.

Online OTA platforms are the primary source of online bookings. If you’re going to start renting out homes, the best option is to be present on these platforms.

That said, here is the list of top platforms to list your rental properties:

Platform	What to List	Best For	Host Fees
Airbnb	Any type of stay	All kinds of hosts	~3%
Vrbo	Entire homes only	Families, full-home hosts	5% + fees
Booking.com	Homes, hotels, and apartments	Professional hosts	10–25%
Expedia	Vacation homes (part of travel deals)	Hosts offering full packages	12–22%
Plum Guide	High-quality, luxury homes	Luxury, premium hosts	3% or 16.5%

Airbnb

Airbnb is one of the most well-known platforms for renting out properties.

It is available in over 220 countries and has millions of users. Hosts can list entire homes, shared rooms, and unique stays (treehouses, cabins, tiny homes).

Airbnb is great for all types of guests, from solo travelers to families. It offers both short-term and long-term stays.

Hosts can set their own rules, pricing, and availability.

Vrbo (Vacation Rental By Owner)

Vrbo is one of the oldest vacation rental platforms.

One unique feature is that it only focuses on entire property rentals, not shared spaces. Hosts can list homes, villas, condos, or cabins.

It is ideal for hosts who rent out full, family-friendly properties.

Vrbo is part of the Expedia Group. It attracts families and groups looking for more privacy. It doesn’t allow room sharing.

So, this isn’t the best fit if you’re offering just a room.

Booking.com

Booking.com started with hotels but now allows vacation rentals too.

It has a massive global reach, especially in Europe.

The platform offers many filters and is often used by business travelers and families. Hosts also gain visibility with hotel-booking users.

Use this platform if you’re a host with properties in tourist-heavy cities.

All bookings are instant—no approval needed.

Expedia

Expedia is more than a vacation rental site. It’s a full travel service platform.

People come here to book flights, hotels, and vacation homes in one go.

Expedia works best for the hosts who want to offer bundled travel deals. However, the platform charges a 12-22% fee from the hosts, which is on the higher side.

Expedia isn’t as rental-focused as Airbnb or Vrbo, but it still gets a lot of traffic. Many travelers use it to book everything at once.

It is great if you want your property to be part of a full travel package.

Plum Guide

Plum Guide is a newer platform that focuses on luxury and quality.

Only the top homes get listed here.

Hosts with luxury properties used it mainly. The most commonly listed are high-end homes, designer apartments, and premium vacation rentals.

Plum Guide accepts only about 3% of homes that apply. Properties go through a strict 150-point checklist. If you get accepted, you’ll stand out as a premium host.

If you have a property that meets such high standards, list it on this platform.

What Do You Need To Start STR Venture?

You need only a few things to start renting a house:

A suitable property
Legal permission to carry out
Startup capital, and
Urge to do so

Create your host profile on an OTA platform and simply list your property on it.

However, you’re not done yet. Always be there to reply to your guests. You need to be fast here—do not make your guests wait a long time to listen to your side.

Once you get into the routine, you’ll start learning new things.

Top Locations for Short-Term Rentals

Do you know the classical real estate mantra? No? Let us tell you then.

The old-school, all-time-favorite real estate mantra is: Location, Location, Location.

You heard it right. The key to making any real estate purchase successfully is selecting a property in the right location. The same goes for short-term rentals.

The location directly decides how much you can earn by renting out the property.

To decide the right location, see the STR demand and average prices in the particular area.

If you find a property in an area with a lot of tourist or travelers movement and per-night rents are pretty high, you’re gonna earn good money from it.

To put into perspective, AirDNA report mentions the following areas ideal for STR:

Overall Rank	Market	Avg. Revenue Potential	Occupancy	ADR	RevPAR	RevPAR Growth
1	Peoria, Illinois	$31,131	58.50%	$179.61	$105.75	7.70%
2	Fairbanks, Alaska	$49,459	68.20%	$224.25	$149.15	8.20%
3	Akron, Ohio	$31,207	55.20%	$265.42	$133.45	11.50%
4	Columbus, Georgia	$39,986	60.30%	$187.04	$112.91	5.30%
5	Crescent City, California	$51,318	69.30%	$299.16	$170.33	8.80%
6	Shreveport, Louisiana	$36,806	57.30%	$185.04	$106.00	12.60%
7	Page, Arizona	$41,243	62.10%	$303.86	$188.72	11.20%
8	Rockford, Illinois	$35,826	59.00%	$261.93	$160.37	9.20%
9	Dayton, Ohio	$35,456	59.30%	$191.25	$111.42	8.70%
10	Frankfort, Kentucky	$46,368	58.10%	$303.56	$170.18	0.10%

Go through each location, perform your calculations, and pick a location that suits you the best.

In the end, select a property near where you live if you really want to make things simple and easy for you. You can handle emergencies well, welcome guests better, visit it to see how everything is going, and do much more simply because you live nearby.

Conclusion

Starting a short-term rental business is a smart move right now.

The market is growing fast, and there is good money to be made. But it is not just about listing your place online.

You need to pick the right location, follow local laws, and make your property guest-ready. Set fair prices, clean often, and reply to messages quickly.

Use multiple platforms to get more bookings.

Keep learning and improving as you go.