Short-Term Rentals (Airbnb, VRBO): Agent’s Guide to Helping Landlords

The short-term rental (STR) market has become one of the fastest-growing segments in real estate. Platforms like Airbnb, VRBO, and Booking.com are attracting hundreds of millions of travelers each year. Investors and homeowners see the opportunity to turn properties into income-generating assets. According to AirDNA, the U.S. short-term rental market generated over $64 billion in revenue in 2023, with demand increasing by nearly 10% year-over-year. This market creates an opportunity for Airbnb real estate agents.

Potential buyers are asking how to evaluate properties for rental potential, what regulations apply, and how to maximize income without overextending. Agents who can answer these questions confidently position themselves as trusted advisors in a competitive and evolving market. This guide offers practical strategies to help landlords and investors succeed in short-term rentals while protecting their investments.

Understanding the Short-Term Rental Landscape

Short-term rentals are generally defined as furnished properties rented for stays of 30 days or less. They can range from single spare rooms to luxury vacation homes, and demand is driven by a mix of leisure travelers, business visitors, remote workers, and event-goers.

Platforms at a Glance

Short-term rentals operate through a variety of platforms. Agents advising clients should understand the differences and which platforms are popular in their market so they can recommend the right fit for a property and its target guests. The major players include:

• Airbnb dominates the market, with millions of active listings worldwide. It appeals to a broad audience, from budget-conscious travelers to luxury seekers.
• VRBO (Vacation Rentals by Owner) focuses more on whole-home rentals, often targeting families and larger groups.
• Booking.com provides global exposure and appeals strongly to international guests.
• Niche platforms, such as Furnished Finder (popular among traveling nurses) and corporate housing providers, are carving out specialized segments of the market.

Why STRs Are Growing

Several forces have fueled the rapid rise of short-term rentals as investment properties. The rebound in travel after the pandemic increased demand for flexible lodging options. At the same time, the rise of remote work has created a class of digital nomads and traveling professionals who need medium- to short-term stays. For investors, STRs often promise higher cash flow than traditional long-term rentals, especially in high-traffic urban, resort, or event-driven markets.

This mix of travelers, technology platforms, and investor interest has transformed STRs into a mainstream real estate strategy, one that agents can no longer ignore if they want to serve clients effectively.

Local Regulations & Legal Considerations

Short-term rentals can generate strong returns, but they also operate under some of the most complex and varied regulations in real estate. Every city sets its own rules, and even neighborhoods or condo associations may impose additional restrictions. Agents who guide clients through these requirements protect landlords from costly mistakes and ensure properties remain compliant. The most important considerations include:

• Zoning and Permits.
  Many cities require hosts to obtain a short-term rental permit or license before listing. Some restrict STRs to primary residences only, while others limit the number of nights a property can be rented. Cities with strict enforcement include New York City, San Francisco, and Honolulu.
• HOA and Condo Bylaws.
  Even if local laws allow STRs, homeowners’ associations and condo boards often prohibit or restrict them. Agents should be proactive and review governing documents before showing properties to clients in these communities.
• Taxes and Fees.
  Hosts are often required to collect and remit occupancy taxes, transient rental taxes, or state lodging taxes. Platforms like Airbnb sometimes collect these automatically, but compliance varies by location. An Airbnb real estate agent should research the tax requirements in their area and educate buyers.

If property owners do not follow regulations, cities can impose heavy fines, suspend operations, or even ban listings for violations. Beyond city rules, STR platforms may delist properties that fail to meet legal requirements. These rules are designed to protect the local housing supply.

By educating clients upfront, you earn trust and reduce the risk of surprises after purchase. For market-specific guidance beyond their own expertise, agents should also direct landlords to city websites, state tax portals, or connect them with legal professionals who specialize in real estate compliance.

Analyzing Profit Potential—What Makes a Good STR Investment?

Not every Airbnb is profitable. Like any business, STRs require a strategy.

Short-term rentals need to be well-positioned and carefully evaluated. Knowledgeable agents play an important role in helping clients understand the numbers behind an STR purchase and how location, demand, and seasonality affect profitability.

Metrics to Evaluate

Occupancy rate, Average Daily Rate (ADR), and Revenue per Available Rental (RevPAR) form the foundation of STR analysis. Agents and investors can use these metrics to estimate a property’s profitability. For example, a property with an 80% occupancy rate and a $200 ADR generates roughly $4,800 per month in gross revenue. Comparing RevPAR across properties gives investors a clearer picture of performance potential.

Location and Guest Demand

Properties near tourist attractions, convention centers, hospitals, and universities often achieve higher occupancy. Walkability, access to public transportation, and proximity to airports also drive guest demand. Uniquely remodeled properties and interior design can also be big selling points that attract guests. An agent who understands what guests prefer, or gaps in the local market, can help clients identify properties that consistently draw bookings.

The Role of Seasonality

High-demand periods, such as summer in beach towns or ski season in mountain resorts, can significantly boost income. At the same time, off-season slowdowns can cut revenue in half, and that needs to be anticipated. Agents should encourage clients to review both peak-season potential and shoulder-season performance before making projections.

Tools for STR Analysis

Platforms like AirDNA, Mashvisor, and Beyond Pricing offer occupancy forecasts, competitive benchmarking, and revenue projections as part of their subscription services. Many of these tools also estimate expenses, offering a more complete picture of net profitability. If an agent regularly works with clients buying short-term rentals, accessing one of these platforms could provide a good return on investment. Agents who are familiar with these resources bring added credibility when advising investor clients.

Short-Term Rental vs Long-Term Rental ROI Comparison

In many markets, STRs can generate two to three times the income of a traditional lease. The trade-off comes with higher management costs, operational expenses, stricter regulations, and revenue variability. By showing side-by-side comparisons, agents can help clients decide whether short-term or long-term renting aligns better with their goals.

Consider a two-bedroom condo that rents for $2,000 per month on a long-term basis. Over a year, that generates $24,000 in gross income with relatively stable expenses, as usually tenants pay utilities. The same condo as a short-term rental, averaging $150 per night at 70% occupancy, brings in about $37,800 annually. Even after accounting for roughly 30 percent in cleaning, platform, and management costs, and utilities, the property nets around $26,000—still ahead of the long-term lease. However, the unit still needs to be furnished, and there will be higher wear and tear. In this example, an STR might not be the best option for the property, or the buyer needs to formulate a plan to increase the nightly rent.

This kind of comparison helps clients see both the potential upside and the added complexity of STR investments. Agents who can clearly explain the numbers give their clients the confidence to make informed decisions.

Seasonal Pricing Strategies & Dynamic Adjustments

One of the biggest advantages of short-term rentals is dynamic pricing, which allows for real-time adjustments to pricing. Unlike long-term leases, STRs allow owners to capture higher rates during peak demand periods and adjust downward when bookings slow.

Dynamic pricing tools such as PriceLabs, Wheelhouse, and Beyond Pricing analyze market data and suggest rates based on demand, seasonality, and comparable listings. These platforms help owners avoid underpricing during busy weekends or overpricing during slow weeks. For example, a property near a convention center might rent for $250 per night during a major event but only $120 when the center is quiet. Automated adjustments ensure hosts capture both opportunities without constant manual monitoring.

Seasonality also plays a major role in profitability. Properties near college campuses often see surges during graduation weekends and homecoming events. Homes near music or cultural festivals, such as Austin during SXSW or New Orleans during Mardi Gras, can generate multiples of their normal nightly rate. Agents should be smart in how they encourage clients to evaluate revenue projections and advise on high, shoulder, and low seasons.

Agents should develop a working knowledge of how minimum stay requirements and discounting strategies affect rental performance in their market. A two-night minimum may attract more weekend travelers in busy tourist hubs, while a week-long minimum often suits family-oriented vacation destinations better. Understanding which approach drives stronger results locally helps agents guide clients toward realistic revenue expectations.

It’s also valuable to research how last-minute discounts impact occupancy rates. Offering reduced prices on unsold nights within a week of stay can help boost bookings without cutting too deeply into annual revenue. Airbnb real estate agents who can explain when and how these tactics are most effective position themselves as strategic partners, not just transaction facilitators.

Marketing Your Short-Term Rental Property Effectively

A well-marketed property, whether for sale or short-term lease, is the difference between high rental rates and a listing that sits empty.

Professional Photography and Staging

High-quality visuals drive clicks and bookings. Agents should advise clients to invest in professional photography and consider light staging that highlights lifestyle elements, such as a set dining table, cozy reading nook, or outdoor seating area. Photos should show both wide angles of each room and close-up details that capture the property’s personality.

Writing Listings That Sell

A strong description goes beyond square footage and bed count. Agents should coach clients on highlighting the property’s amenities, local attractions, and unique features that appeal to its likely guests. SEO-friendly titles and clear taglines, such as “Family-Friendly Downtown Condo with Parking” or “Quiet Retreat Near Convention Center.”

Building Visibility Beyond Platforms

Airbnb and VRBO may be the starting point, but visibility grows when listings are promoted elsewhere, such as a custom website. Agents can encourage clients to leverage social media, create a Google Business Profile, or partner with local tourism boards and travel bloggers. Listing across multiple platforms also expands reach, and syncing calendars with tools like iGMS or Lodgify prevents double bookings.

Reviews as a Booking Driver

Positive reviews act as the currency of trust in the STR market. Agents should explain how early efforts to create great guest experiences pay off in long-term booking volume. Encouraging landlords to request reviews politely through automated follow-ups or personal thank-you notes helps build credibility without coming across as pushy.

When agents guide clients through these marketing basics, they go beyond the transaction and help build sustainable rental businesses, which is particularly important for clients new to the industry. Strong marketing not only drives occupancy but also supports higher nightly rates, stronger reviews, and repeat buyers.

Operations & Guest Management

Running a short-term rental is part hospitality, part logistics. Agents can guide clients by helping them anticipate the key responsibilities that keep bookings consistent and guests satisfied:

• Owners must decide whether to self-manage for higher margins or hire a property manager who typically charges 20–30 percent of revenue.
• Turnover requires reliable cleaning and restocking between stays to keep occupancy steady.
• Guest communication can be streamlined with tools like Hospitable or Guesty, which automate check-in details, reminders, and follow-ups.
• Smart locks, remote check-in, and prompt handling of complaints build trust, protect reviews, and encourage repeat bookings.

By breaking down these operational realities, agents position themselves as partners who understand both the property and the business model behind it.

Furnishing & Amenity Planning for Maximum ROI

The best and most profitable STRs are those that offer something unique in terms of design, amenities, and location. Spaces that feel cohesive, comfortable, and visually appealing not only photograph better but also encourage higher booking rates and stronger reviews. Guests scroll quickly through listings, and a well-designed property can stop them in their tracks.

Durability and style should work together. Furniture made from easy-to-clean, long-lasting materials keeps turnover efficient. Meanwhile, cohesive color schemes, thoughtful lighting, and inviting layouts create a sense of comfort. STRs should have a mix of practicality and aesthetic appeal to help properties stand out in competitive markets.

Lastly, don’t overlook amenities. Whether staying for a night or a month, guests want high-speed internet, comfortable bedding, and a reasonably stocked kitchen. Details like blackout curtains and a dedicated coffee station can elevate the stay even more. Small touches such as a welcome basket and local recommendations create warmth and leave lasting impressions that often translate into repeat visits and five-star reviews.

Real estate agents can support clients by connecting them with designers, stagers, or furnishing services familiar with the short-term rental market. Pre-establishing these relationships helps landlords quickly turn a unit into an experience, which puts them on the path towards their next purchase.

Common Mistakes to Avoid in Short-Term Rentals

Even the most promising short-term rental can underperform if investors overlook critical details. The difference between a long-term rental and a vacation rental is that owners are venturing into hospitality. Agents who understand common mistakes can help clients avoid costly mistakes and set realistic expectations.

Here are some of the top mistakes that new short-term rental investors make:

1. Overlooking local regulations or assuming STRs are permitted everywhere.
2. Underestimating the cost of furnishing and setup.
3. Failing to budget for cleaning fees, platform fees, taxes, or insurance.
4. Using poor-quality photos or weak listing descriptions.
5. Neglecting guest screening or skipping proper insurance coverage.

Even one of these mistakes can be catastrophic, particularly when margins are tight or properties haven’t developed a strong reputation. Agents want to make sure their clients don’t go out of business before they even start. Real estate agents should gauge their clients’ experience and then proactively raise these issues, not only to safeguard their clients’ investments but also to reinforce their own value as knowledgeable advisors in the STR market.

How Agents Can Support STR Buyers and Landlords

Short-term rentals come with regulations, financial questions, and operational challenges that clients may not anticipate. Agents can guide buyers through their short-term rental purchase and business setup by:

• Identifying STR-permitted zones and helping clients navigate licensing processes.
• Using STR data providers to give accurate income and occupancy projections.
• Building a network of designers, contractors, cleaners, photographers, and managers for client referrals.
• Providing rental income estimates as part of buyer consultations.
• Offering post-purchase check-ins to assess performance or prepare for resale.

Agents need to take a long-term approach with their relationships with short-term rental investor clients. Many of these clients will become repeat buyers, and eventually they will become sellers. These steps build confidence and solidify long-term client relationships. By offering ongoing value, agents establish themselves as the go-to resource for both first-time and seasoned STR investors.

FastExpert Agents Add STR Value

Short-term rentals make residential investing complex, but in exchange for potentially much higher profits. Landlords entering this industry need more than a property; they need guidance on regulations, profitability, and operations. Agents who provide this support stand out in competitive markets and will build long-term relationships with repeat investor clients.

FastExpert agents bring added value by combining local insight with a national network. They can identify neighborhoods with strong STR potential, flag legal risks before they become obstacles, and share pricing and occupancy trends backed by data. Many also highlight their STR experience on their FastExpert profile, helping them attract clients who are actively searching for agents with this niche expertise.

By connecting investors to trusted vendors, advising on income potential, and offering resale strategies, FastExpert agents become true partners in the short-term rental journey. In a fast-growing market, this level of expertise creates confidence—and keeps clients coming back.