The 3 P's: How to Find the Perfect Short Term Rental Property

Searching for the perfect short term rental property can feel like a daunting task. What market should I be in? What neighborhood? How many bedrooms? What amenities?

I am a big believer in the KISS model. Keep it stupid simple. So whenever we are looking at new properties I am always start with who is my ideal guest and then I look for the 3 P's.

PROXIMITY

What do my ideal guests want to be around? The closer my property is to where my guests want to be, the more attractive my listing is to them. Seems pretty simple right? Next time you're researching a property, ask yourself these questions:

What attractions are my guests coming to see? Is the property near a sports stadium, a performance hall, a convention center, a local tourist hotspot, the beach, the mountains? What attractions are drawing visitors to this market?

What offices are in the area? Am I near any corporate headquarters, any major office complexes, any specialty service providers?

Are there any hospitals near by? Do they have have inpatient services?

Is it close to any restaurants? Can guests walk to a local coffee shop, a sandwich shop, a grocery store, a burger spot, a romantic dinner?

How easy is it to get around? Do your guests need a car to get to the property? If they're flying into town, can they easily get public transportation or a reasonably priced Uber? Is the property within walking distance to a train or subway to get around town? Is there a plentiful supply of Ubers and Lyfts in the area on a regular basis?

PEOPLE

The next thing I look for is how many people can the property comfortably host. We like to host families with kids or groups of couples so our best performing properties have 2-3 bedrooms and 2 bathrooms. When we're looking at potential properties we like to see bedrooms that are spaced out in the floorplan, meaning that bedrooms do not share walls. When you are going away with your significant other and some friends, no one wants to hear what may be going on in the next room.

When it comes to bathrooms, I have a rule of thumb: absolutely no more than 6 guests per bathroom. Although the property may be able to sleep more than 6, I have found that guests tend to complain of the extended wait lines for a single bathroom and also frequently run out of hot water when more than 6 people are taking back to back showers in the morning. I will admit, I do have one 2 bed/1 bath property in our portfolio that can sleep up to 8 people with the pullout couch and futon, but I've looked at the numbers and the average number of guests that stay is 5. Also I highly recommend ensuring that the property has at least one tub if you plan on catering to families. While walk-in, tile showers look great in photos, if you don't have a tub for the kiddos, then you'll be losing a lot of business from guests with young families.

The dining area is often overlooked by short term rental hosts. I made this mistake early on in my hosting career. If the property can sleep 6 people, make sure that the property also has adequate space for 6 people to dine together. One of the big perks of staying in a furnished property as opposed to a hotel is that you can cook and dine in. No one wants to prepare a great meal for the family and then have to play rock, paper, scissors to see who gets to eat at the big kid table.

PERKS

The last P is the icing on the cake. What are the perks of this particular property that set it apart from your competitors? Proximity and people are your baseline for finding a great short term rental property. The perks are what will give you a leg up on your competition and help make your listing stand out above your competitors. Here are some perks you can look for in your next short term rental property:

- Does it have free off-street parking?
- Does it have a fireplace?
- Hot tub?
- Pool?
- Gourmet kitchen?
- In-unit washer and dryer?

Print out this page and use it as a checklist when you're searching for your next property.

If you're currently struggling in your short-term rental business or you're having trouble starting your business, I've allocated a few slots on my calendar to do some free one-on-one strategy sessions. If you're serious about building your business, feel free to click the link below, fill out the questions so I can learn more about your current situation and set aside 15 minutes for a concise & powerful strategy session with me. We're all in this together and we will all come out stronger on the other side.

Click here to book your free strategy call with me.

To your success,
Mike