GLOSSARY

What does STR stand for in real estate?

Learn what is STR in real estate, how short-term rentals work, key benefits, regulations, and what investors should consider before diving in.

Short-term rental (STR) refers to leasing property for less than 30 days at a time. People usually do this through platforms like Vrbo or Airbnb. Rentals can include anything from individual rooms in shared apartments to whole houses. People who use STRs are typically tourists, business travelers and people in need of temporary housing

While the potential profit from short-term rentals is higher than that of long-term ones, they also have some downsides. These include stricter rules aimed at curbing their effects on neighborhoods, preserving housing affordability, and ensuring safety standards. The range of regulations across jurisdictions affects how viable or profitable an STR investment may be.

Where a property is, how much people want it, and the time of year all impact the short-term rental market. However, COVID-19 has brought about new trends such as increased interest in secluded accommodations.

Investors need to choose locations for their short-term rentals wisely. They should consider how guests will interact, the cleaning requirements, and any possible changes in regulations. These factors can affect profitability. Despite challenges, choosing the right markets can still be one of the best ways to maximize income from renting out properties.