Vacation home rental on a property you own

Vacationing families, groups of friends and couples, booking directly or through platforms like Airbnb and Vrbo.

A nightly rate with a cleaning fee, often with higher prices in peak season and weekends. Repeat guests who book directly save you platform fees.

• Friendly, quick guest communication
• Organizing bookings and cleaning schedules
• Basic home upkeep and styling

• Many cities, counties and HOAs restrict or ban short-term rentals, so check before you buy furniture
• Short-term rental permit, business license and lodging or occupancy tax registration (check with your city, county and state)
• Standard homeowner's insurance may not cover paying guests, so ask about short-term rental or commercial coverage
• Check your mortgage terms and any HOA or lease rules
• Safety basics such as smoke and carbon monoxide alarms, and a plan for guest problems and damage

Startup costs are typically estimated at around $5,000 to $25,000, depending on how much furnishing, décor, safety equipment and photography the property needs. Because you already own the home, costs are mainly preparing it for guests.

Monthly revenue is typically estimated at around $1,500 to $7,500, depending on location, season, nightly rates and how often it is booked. Revenue is not profit, so account for cleaning, utilities, platform fees and upkeep.

Check whether your city, county or HOA restricts or bans short-term rentals before buying furniture. Also check short-term rental permits, business license and lodging or occupancy tax registration, your mortgage terms, whether homeowner's insurance covers paying guests, and safety basics such as smoke and carbon monoxide alarms.