The State of Short-Term Rentals: What Every Real Estate Pro Should Know

Written By Kevin J. Seery

If you're not fielding at least the occasional client question about short-term rentals, you probably will be soon. More buyers are walking into conversations already asking "could this work as an Airbnb?"  and agents who can speak to that intelligently are winning trust (and deals) that others are leaving on the table.

At Excelsior Stays, we cohost luxury vacation homes for owners across multiple markets, and we want to share what we’re seeing. 

Here's where things stand right now:

1. Buyer Intent Has Shifted

STR-curious buyers today aren't just looking for a vacation home, they're underwriting it like an investment. That means they're asking about:

  • Realistic income potential (not the inflated numbers they saw on a listing site)

  • Who will manage the property if they're not local

  • What regulatory risk looks like in the area

  • Whether the home will actually perform, or just "could" perform

Agents who can speak to even the basics of this earn credibility fast, even if the honest answer is "let's get someone who specializes in this to run the numbers."

2. Not Every Property Is a Good STR Candidate

This is the one that surprises people: a home doesn't need to be huge to perform well as a short-term rental, and a beautiful home doesn't automatically mean strong returns. What tends to matter most:

  • Proximity to demand drivers (not just "near the beach," but near what people are actually traveling for)

  • Layout that supports the right guest count and privacy zones

  • Local rules that actually allow it

  • Realistic comparison to what's already renting nearby and how to stand out

We'll go deeper on how to evaluate this in our next issue, including a simple checklist you can use during a showing.

3. Guest Expectations Have Quietly Gotten Higher

The bar has moved. Guests booking premium stays now expect hotel-level consistency. Professional photography, fast responsive communication, spotless turnovers, and design that photographs well are necessities. This matters for you because it affects a client's real ROI: a beautifully staged listing photo doesn't guarantee a beautifully performing rental if the operations behind it are amateur.

4. "Can I Manage It Myself?" Is the Wrong First Question

Most owners ask whether to self-manage or hire a manager. The better first question is whether the property is even a strong candidate because a poorly suited property will underperform no matter who runs it. We'll unpack that distinction more in a future issue too.

Kevin J. Seery