Key Takeaways
- STR revenue depends on ADR and occupancy—model both with seasonal variation for accurate projections.
- After platform fees, cleaning, furnishing, and management costs, the STR net premium over LTR is smaller than gross figures suggest.
- Regulatory risk is the primary threat—always maintain LTR conversion capability as a fallback.
- Only pursue STR when net premium exceeds 30% above LTR income to justify additional risk and complexity.
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Test Your Knowledge
1.For Short-Term Rental Market Analysis, which metric combination best indicates rental market health?
2.How should rental market analysis inform investment underwriting?
3.What is the most important trend to monitor in an active rental market?