5. Set Rules and Create a Strong Rental Agreement
Before you list your property, decide what rules you want to set. This can include pets, what type of pets, cleaning fees, the minimum number of days, the maximum number of people, smoking or the number of vehicles. Management companies and online listing platforms often have agreements you can modify. You can also find examples of such short-term rental agreements online.
It's a good idea to consult an attorney to make sure you include the required language for your city or state and have covered all the bases to protect yourself from legal issues.
6. List and Market Your Property
The easiest way to reach lots of tenants is to feature your listing. You should have a well-written description and high-quality photos that make the property stand out. Hire a professional photographer to take high-quality pictures showing the exterior, entrance, interior and general neighborhood.
7. Choose How to Welcome and Communicate with Guests
Once your property is listed, make sure you have a process for communicating with guests before, during and after the stay. There should be clear instructions on the check-in process, possibly with a digital lockbox or physical lockbox on site.
With online tools like Canva, you can create a free digital welcome package with all the important information for guests to review before arriving. You can also leave a printed book in the home or post important information on a chalkboard or whiteboard near the entrance. Things to include in the welcome packet are the Wi-Fi password, access to entertainment services, appliance operating instructions and information on local or community amenities. Restaurant recommendations and menus are also a plus.
8. Decide How to Clean the Property and Handle Tenant Turnover
If your home is popular, you may have one set of guests check out in the morning and a second set arrive that same afternoon. This makes it critical that the cleaning crew shows up on time and does a thorough job.
Cleanliness is one of the biggest complaints in vacation rental reviews and can make your home quickly become less desirable if not cleaned thoroughly. AirDNA analyzed all of Airbnb's U.S. short-term rental listing reviews through 2023. One of the biggest score differentials was cleanliness, Gallagher says.
Make sure the cleaning crew isn't overlooking things like cobwebs or dust that can accumulate in low-traffic areas. All linens should be clean and free of stains and all dishes should be clean and ready to use. It's a good idea to have sufficient linens to swap out towels and sheets with new ones while the dirty ones are being cleaned to speed up the turnover process. Basic things like vacuuming should be done between each stay and major areas like the bathroom, toilet and shower should be thoroughly scrubbed between stays.
Not every property will make sense as a short-term rental property. However, if your home is in a desirable area and you create a well-run operation, the income it generates can certainly help offset the cost of owning it or even generate extra income for you.