Definition
Short-term rentals (days to weeks) can generate 2-3x higher nightly rates but involve more management and regulatory restrictions. Many cities have banned STRs.
Where you’ll meet it
What is this home for, honestly?
See it in Buying a second home · Step 1About this term
Short-term rentals (STRs) can generate 2-3x higher nightly rates than long-term rent but involve more management, higher vacancy, and greater regulatory scrutiny. Many cities have restricted STRs through zoning laws, licensing requirements, and rental caps. STR properties require higher capital reserve due to maintenance demands and inconsistent income.
Pro Tip
Research local STR regulations before purchasing.
Example
A property renting at $1,200/month long-term might generate $3,000+/month through STR at $60/night occupancy