The popularity of short-term rentals (SRTs) has soared during the past few years, thanks to platforms like Airbnb, VRBO and a growing list of others. With travelers seeking more personalized and authentic experiences, investing in SRT properties has become an attractive and profitable option for many property owners. The location of an SRT can dramatically increase its popularity. Let’s check out some of the other factors that can increase your chances for establishing a successful SRT.

1. City Centers and Downtown Areas: City centers and downtown areas are prime locations for SRTs. These bustling neighborhoods are attractive to travelers who want to experience the vibrant atmosphere, cultural landmarks, and proximity to major attractions. Business travelers, tourists, and individuals attending events or conferences often prefer the convenience of staying in the heart of a city, with easy access to public transportation, restaurants, nightlife, and shopping districts.
2. Tourist Hotspots: Tourist hotspots, such as beach towns, mountain retreats, or historical areas, are consistent favs for SRT visitors. These locations attract a steady stream of visitors throughout the year, ensuring a high occupancy rate for your rental property. Beach towns offer vacationers a chance to unwind, while mountain retreats attract outdoor enthusiasts and nature lovers. Historical areas provide a unique cultural experience, appealing to history buffs and sightseers.
3. Residential Neighborhoods near Attractions: Residential neighborhoods near popular attractions, but slightly away from the bustling city centers, are excellent choices for SRTs. These areas offer a balance between convenience and tranquility. Travelers often prefer the comfort of a residential setting, with easy access to nearby attractions. For instance, a rental property close to a famous theme park, museum, or entertainment venue can be a lucrative investment, attracting families, groups, and tourists seeking a memorable experience.
4. Up-and-Coming Neighborhoods: Investing in up-and-coming neighborhoods can be a smart move for SRTs. These neighborhoods are often undergoing revitalization or experiencing a surge in popularity due to new developments, trendy shops, and hip restaurants. By getting in early, you can capitalize on the increasing demand for accommodations in these areas. However, thorough market research is essential to ensure that the neighborhood’s growth potential aligns with your investment goals.
5. Business Districts: Business districts are not just for corporate travelers; they also attract visitors attending conferences, trade shows, and professional events. SRTs near business districts offer convenience, as they provide easy access to conference centers, meeting venues, and corporate headquarters. Additionally, business travelers often require extended stays, which can be more profitable for property owners.

Choosing the right neighborhood can make the difference between an SRT that is constantly booked and one that is only occasionally booked. City centers, downtown areas, tourist hotspots, residential neighborhoods with nearby attractions, up-and-coming areas, and business districts are among the best types of neighborhoods for SRTs. By being mindful of the preferences of your target audience (where would you like to stay???), researching local regulations (and there can be MANY, so check into this), and evaluating market trends, you can make an informed decision that maximizes your rental income and provides a memorable experience for your guests. Remember, location is key when it comes to SRTs, so do your homework to increase the likelihood of success!