The vacation rental industry is growing rapidly—and for good reason. In the U.S., the vacation rental market is projected to reach $138.1 billion in 2025, with global demand continuing to rise. Consumers spent $81.784 million on Airbnb stays alone in 2024, up 11.6% from the previous year. With more travelers choosing vacation rentals over traditional hotels, homeowners are finding new ways to generate passive income from properties they already own.
If you’re a homeowner considering getting into the short-term rental space—or if you’re already renting but feeling overwhelmed—this guide will walk you through how to start a vacation rental and how to decide if a co-host or vacation rental management company might be the right partner.
1. Understand the Local Laws Before You List
Before you start sprucing up your home or building a listing, take time to understand your local short-term rental regulations. Every city, county, and even neighborhood may have its own rules. Some areas require vacation rental permits, business licenses, or safety inspections, while others may limit how many nights per year you can rent your home.
If your property is in a homeowners association (HOA), check the bylaws—some HOAs restrict or prohibit short-term rentals altogether. You’ll also need to familiarize yourself with local taxes, such as transient occupancy taxes (TOT) or lodging taxes, which you may be required to collect and remit.
Lastly, ensure your insurance covers short-term rentals. A standard homeowner’s policy usually won’t suffice. You may need a rider or a dedicated vacation rental policy for full protection.
2. Choose the Right Property—or Maximize What You Have
If you’re starting from scratch and considering which home to use or purchase, prioritize location, layout, and guest appeal. Properties near popular attractions, restaurants, and downtown districts tend to attract more bookings and command higher nightly rates. Today’s travelers are looking for both convenience and memorable experiences, so proximity matters.
Already own a property? You can absolutely succeed with what you have. Focus on maximizing its potential by enhancing the layout, updating the design, and adding guest-loved amenities. Even small upgrades—like fresh linens, updated lighting, or unique décor—can make a big difference in guest satisfaction and nightly rate.
At GoodNight Stay, we assist homeowners in all aspects of their vacation rental journey. Whether you’re looking for expert Scottsdale short term rental management or want to tap into Nashville’s booming rental market with the support of a local team, we’re here to help. Our in-house design team, Alpha Interiors, provides expert staging consultations and full design services to help transform your property into a top-performing rental. If you’re still searching for the ideal investment property, our real estate team, Alpha Residential, can guide you through the buying process with insight into what makes a property successful in the vacation rental market.
3. Prepare the Property for Guests
Guests expect comfort, convenience, and a memorable experience when staying in a vacation rental. That means your property should be more than just clean—it should feel thoughtfully prepared and professionally managed.
Start with durable, guest-friendly furniture and consider flexible sleeping arrangements like sofa beds or bunk rooms to accommodate groups. Stock the essentials: clean linens and towels, bathroom toiletries, kitchen basics, coffee and tea, and maybe a few local snacks or welcome gifts.
Smart home technology like keyless entry systems, smart thermostats, and security cameras (only on the exterior) can enhance the guest experience and give you peace of mind.
Finally, safety matters. Install smoke and carbon monoxide detectors, provide a fire extinguisher, and include emergency contact info and house rules in a guest manual or welcome guide.
4. Build a Listing That Converts
Your listing is your first—and often only—chance to make a great impression online. Professional photos are worth the investment. Highlight your home’s best features, from natural light to unique decor to outdoor spaces.
Next, craft a compelling and keyword-rich description. Be clear about what your home offers, including amenities, sleeping arrangements, and what makes it special. Think like a guest—what would make them choose your property over the next one?
Don’t forget to optimize your nightly pricing. Research what similar properties in your area charge, and consider using pricing tools or partnering with a management company that offers revenue optimization. Dynamic pricing helps you stay competitive and adjust rates based on demand, seasonality, and local events.
5. Deliver a Five-Star Guest Experience
The difference between an average host and a top-rated one often comes down to the guest experience. Prompt, friendly communication before and during a stay builds trust and leads to better reviews. Guests should never feel like they’re left guessing about how to check in, use appliances, or find local recommendations.
Little touches go a long way—fresh flowers, a personalized welcome message, or curated tips about your neighborhood can leave a lasting impression.
Of course, consistent quality is key. That means reliable cleaning between every stay, well-maintained amenities, and the ability to address issues promptly. If you’re not available 24/7 or live out of town, you’ll want to explore co-hosting programs or vacation rental management services that offer on-the-ground support.
6. Already Hosting and Feeling Overwhelmed? Co-Hosting Might Be Your Solution
If you already manage a vacation rental but find yourself drowning in guest inquiries, turnovers, and pricing decisions, you’re not alone. Many homeowners quickly discover that short-term rentals are a lot more work than they expected.
That’s where a co-hosting solution like our Essentials Program can help. This program is designed for homeowners who still want to be involved but need professional support. We take care of the hard stuff—like creating a compelling listing, marketing your home on 300+ platforms, handling guest communication, managing dynamic pricing, and overseeing turnovers—so you can focus on what matters most.
You stay in control of your property, while we ensure your guests have a seamless experience and your revenue potential is fully optimized.
This level of support is especially valuable in highly competitive markets. If you’re managing a property in Tennessee or Arizona, Nashville short-term rental management and Scottsdale short-term rental management services like ours help you stand out from the crowd by offering hands-on local knowledge, strategic pricing, and next-level service.
7. Run Your Rental Like a Business
Success in the vacation rental world doesn’t stop once your listing is live. Treat your rental like a business to keep income high and operations smooth.
Track your revenue, expenses, and occupancy trends monthly. Monitor your guest reviews for opportunities to improve. Consider reinvesting in upgrades that allow you to raise your nightly rate. And always be on the lookout for tools or partners that can help you scale efficiently, whether it’s automating your messaging or expanding into additional properties.
If you’re serious about long-term success, working with a trusted Scottsdale vacation rental management or Nashville vacation rental management company gives you access to expert insights, detailed reporting, and proven systems to grow sustainably—without burning out.
Ready to Start—or Simplify—Your Vacation Rental Journey?
Whether you’re just getting started or you’ve been hosting for years and need a break, we’re here to help. At GoodNight Stay, we offer everything from the standard full-service vacation rental management to the elevated LUXE program, and even co-hosting through our Essentials Program, giving you flexible options to fit your goals and lifestyle. We combine professional marketing, top-tier guest service, and expert revenue management to help you maximize income without the stress. All you have to do is sit back and earn while we handle the rest.
