Choosing an STR Market
The strongest STR markets combine vacation demand, lenient regulation, and a price-to-revenue ratio that produces meaningful gross yield. Avoid markets where city councils are actively restricting short-term rental permits.
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Revenue Modeling
Use AirDNA, PriceLabs, or the Airbnb market explorer to benchmark realistic occupancy and ADR (average daily rate). Apply a 70–80% haircut to top-quartile comps when underwriting — most listings underperform projections.
Operational Expense Reality
STRs typically run 35–45% expense ratios when you include cleaning, supplies, dynamic management, channel fees, utilities, internet, and replacement reserves. Underwriting at long-term-rental expense ratios is the most common mistake.