How do I setup my first Short Term Rental (STR)?

Since I was in the short-term rental market and know what it takes to set one up, I though I would give you these tips to get started.

What Fees are associated with listings?

AirBNB nor Verbo don’t charge much to list. For each booking you’ll pay a small amount such as 5% of the booking price. The majority of the AirBNB fee is for the guest to pay. There are no annual fees.

What websites can I list my rental on?

• AirBNB
• Verbo
• Furnished Finder (traveling medical professionals)

Should I do flat fee pricing or dynamic pricing?

For $20 monthly I recommend Price Labs which manages dynamic pricing so the price fluctuates based on different times of the year, weekends, holidays, etc… Added value is that it will update the prices for you on different sites. It will ask you for a base amount that you don’t want to go under and a max amount. The algorithm will make some nights outrageously high so I had a max set on it so I didn’t price-gouge anyone. I don’t remember if it had a way to manage the calendar across sites but if it does that is super amazing.

What maintenance costs will I have?

You will pay water, electricity, internet, and gas. I recommend a digital thermostat that you can control remotely in case a guest leaves the AC on 65deg.

How much do I spent on the furniture and the different home items?

For a 3 bedroom house, I invested $10k in furniture, kitchen items, bedding, and towels. Soft beds are a must. Put all the basic things in your kitchen since guests will expect them.

Tip: Instead of buying everything new for the rental, I replaced some of the items at my personal house and put my old items in the rental.

How much do I pay a cleaner?

In Texas, pay them at least $40 per bedroom (example: 3 bedroom house would be $120).Use a hallway closet for supplies (tp, soap, etc…) with a keyed doorknob but make sure the cleaner has a key. You job is to keep it stocked and when they clean they will distribute the supplies as needed. You charge a cleaning fee per stay regardless of how long guests stay so whatever your cleaner charges you, you pass that on to the guest.

What does a backyard need?

I got a lot of positive comments on the fireplace I put in the background. I used rounded landscape bricks from Home Depot and built a small pit. I didn’t dig a hole for it. Just placed them on the ground and got some Adirondack chairs to put around it.

How can my rental stand out?

Photos!!! Get high quality professional photos. The photos will grab the people to even consider your place. We can all tell a photo taken with a cell phone by a teenager versus a professional photo.

Filterable Items: Look at the sites and see what people can filter through. For example, there is an option to search only houses that have EV car chargers so consider getting a Tesla charger. Since you will pay more money for electricity you can charge an extra amount. Anything you can do to hit those searchable features, do it! There are small ones as well, such as, does it have a first-aid kit. This is low hanging fruit so take advantage of it.

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Got additional ideas?

Make social accounts and put up a notice on the fridge to ask people there to post a review. This can go to Google, Facebook, Yelp, etc… Only the person who booked the property will get a link to review your place via AirBNB so have a way for others who stay there to post a review. These reviews don’t affect your super-host status so use them. I would recommend you write something like, “If you have enjoyed your stay please consider writing a positive review and include a photo.”