by Bernice Ross | Jul 7, 2025 | Industry, News Feed
Technology doesn’t take the place of relationship-building, Bernice Ross writes. The agent who masters both is ready to move forward with confidence in today’s market.
Real estate is changing fast, and so must you. Inman Connect San Diego is where you turn uncertainty into strategy — with real talk, real tools and the connections that matter. If you’re serious about staying ahead of the game, this is where you need to be. Register now!
Have you become stuck in the tar pit of doing business the way you have always done it? If so, your business may be closer to extinction than you can possibly imagine.
Our entire industry is at a crossroads. Will you aggressively pursue implementing the latest AI and AI-powered tech tools to capture market share, or will you refuse to adapt and watch your business wither away and die?
Answer these questions to see if you’re already falling behind
- Do you follow up on leads in minutes rather than hours?
- Is your CRM integrated with AI-powered automation?
- Are you using a transaction management system that tracks your documents from contact to close?
- Are you using AI tools to help you write listing descriptions, do client follow-ups, or make your social media videos and posts more effective?
- Are you using QR codes that instantaneously capture contact information from those who scan them on your print marketing materials and your listing brochure boxes? More importantly, do you follow up on these leads within minutes of receiving them?
- Thirty-eight percent of sellers found an agent through referral from friends or family, and 28 percent were repeat clients, according to data from the National Association of Realtors. Are you still staying in personal contact at least once monthly with the 150 past clients and those in your sphere who are most likely to send you business?
If you answered any of these basic questions “no,” you’re already falling behind.
What clients expect in 2025 (Spoiler: It’s not a postcard)
Today’s clients, especially those under 50, expect instant responses, mobile-first experiences and seamless communication. They assume you will text them, not call. They expect to e-sign, not print and fax. Most importantly, clients are increasingly expecting their agents to leverage AI to make their lives easier.
Here are some of the tools AI-powered agents are already using today:
- AI-powered CRMs that trigger personalized follow-ups based on client behavior.
- Custom ChatGPT prompts to write listing descriptions that reflect each home’s unique style and neighborhood appeal.
- Video walkthroughs with AI voiceovers that give clients a high-touch experience without requiring a showing.
- Virtual staging that allows buyers to picture themselves in the home from anywhere in the world.
- AI chatbots that respond 24/7 to site visitors and text inquiries, even when you’re sleeping.
AI and tech alone don’t cut it
If you’re relying solely on print advertising or weekly email blasts without customization and a call to action such as scanning a QR code, you’re marketing in slow motion while your competitors are sprinting ahead using AI and other tech tools.
On the other hand, if you’re leaning too hard on your tech without building deep connection and trust by investing in the human side of the relationship, the leads you generate will seldom convert or send referrals to you.
It’s not about age. It’s about how you adapt to the tech your clients and leads use
For decades, we have talked about how younger generations will change our business because of the new tools they bring in.
Today, age has nothing to do with it. I’ve met boomers who are crushing it with AI, and Gen Zs and millennials who won’t answer their phones even though the person calling may be sitting in front of one of their listings.
The agents who will succeed in today’s market are those who adapt to a new, AI-powered real estate playing field, combined with the old-school techniques that work as well today as they did 50 years ago. The includes:
- Identifying which tech tools in your current tech stack produce actual results.
- Shifting from canned marketing messages addressed to the masses to customizing your communications using AI to fit the profile of the type of buyer or seller you would like to attract.
- Communicating with clients the way they prefer, whether it’s text, email, video or phone. AI can help here because it can help you craft the right message for a text, email, video or social media post in seconds.
Where to start
You don’t need to become a social media influencer or a TikTok star, but you do need to clearly identify the types of clients who are closing deals with you today (not leads — closed deals).
- Whenever you begin working with a client, be sure to ask, “How would you like me to communicate with you — text, email, phone or a mix?”
- For your older clients, handwritten notes, personal calls, plus posts on their favorite social media sites (where they often connect with their grandkids) are usually very effective. For your younger clients, it’s all about digital speed and transparency. For both groups, authenticity and walking your talk is critical to establishing the trust on which solid client relationships are built.
- Adapt your message, not just your medium. Today, people prefer direct, personal communication over generic ads. Instead of saying you or your company is the top performing agent/company, replace it with, “I just saved a client in your area $20,000 on their home purchase — let me do the same for you.” Go for intentional, targeted content.
- Master at least one AI tool. My personal recommendation is to start with ChatGPT. Begin by using the Master Prompt method I outlined. Provide ChatGPT with as much local market data as possible, facts about your community, your social media profiles on Facebook, Instagram, LinkedIn, etc. Do this first, and watch the beautiful, customized results it creates when you query it.
Other tech/AI tools include:
- Claude or Gemini for listing descriptions, client responses and writing email follow-ups.
- Canva and CapCut for quick branded graphics and short-form video.
- QR codes on signage and print materials that direct the lead to custom landing pages or property videos. Click here for a list of top QR code generators.
- Voice-to-text tools that let you update client records, send notes and create social media content on the go. Zapier has list of their favorites.
Technology doesn’t replace relationships — it supports them. The agents winning today aren’t choosing one or the other. They’re using smart tools to enhance how they show up for their people.
So, if you’re feeling like your business has stalled and your marketing is not producing leads that convert, start now by doing two things. First, sign up for ChatGPT, do the master prompt, and then ask it for what you want. Once it answers, it will ask you if you want it to do other related tasks. Say “Yes,” and see where it takes you.
Second, because more than 60 percent of all real estate business today comes from referrals from past clients, your sphere and other agents, make a point of contacting five people from this group every day via text, email, by responding to one of their social media posts or, when possible, seeing them face-to-face. That’s how to build a successful business for today as well as many years into the future — by doing both.
by Bernice Ross | Jul 7, 2025 | Industry, News Feed
Real estate is changing fast, and so must you. Inman Connect San Diego is where you turn uncertainty into strategy — with real talk, real tools and the connections that matter. If you’re serious about staying ahead of the game, this is where you need to be. Register now!
Are you clinging to the old marketing strategies that no longer work in today’s market? If so, it’s time to inject some creativity into your marketing efforts and make every marketing dollar count.
No matter how long you have been in real estate, there are always new ways to market your business. If your marketing could use a refresh, here are some great ways to market more effectively and to convert more leads into signed business as well.
1. Post-closing marketing
Having a “sold” sign on your listings is one of the most powerful ways to advertise, especially when you sell the property quickly at a good price. On the other hand, how can you, as a buyer’s agent, capitalize on the fact that you just sold a house to your buyer?
The classic approach to this issue is to send out a postcard that says, “I participated in the sale of 123 Main Street.” (In most areas, only the listing agent can send out “Just Sold” cards.)
Here’s a terrific way to overcome this challenge. Once the transaction closes, ask your buyers for permission to place a sign in their front yard. The sign should say, “This property sold by Jane Agent of ABC Real Estate 555-1212.” Give your buyers a gift card or some other item of value in exchange for allowing you to post the sign for 30 days after the transaction closes.
The agent who created this approach didn’t have many listings, but he did sell a lot of homes in this area. His approach really upset many of the listing agents. The reason? People are more likely to remember the agent’s sign that they have seen the most recently. Moreover, most people who see the “Sold By” sign conclude that the agent who sold the property actually had the listing.
2. Track your success
Most agents fail to track where their leads originate. A great habit to establish is to ask every potential client always, “Where did you hear about this property?” If someone is inquiring about your services, ask, “Where did you happen to hear about me?” Finally, if another agent shows one of your listings, do your best to determine where the buyer heard about the property.
Once you obtain this information, carefully evaluate which marketing strategies are effective and which strategies are not producing a return. Eliminate costly activities that don’t work, and focus on activities that result in closed transactions.
3. 3 creative open house ideas
First, instead of waiting until Sunday to post your open house sign on your listing, post it early in the week so that people who drive by the property can see what time it will be open on Sunday.
Second, posting your open house on your Facebook Profile page violates the Facebook Terms of Use. Here’s a much more effective alternative: Use the Facebook Event function. While you won’t want to invite all of your Facebook friends, do select those who may be a good fit for the property, live in the area or are current clients.
Third, people love getting something for nothing. A simple way to do this is with a small gift bag that includes information about the listing you are holding open, any other listings you may be marketing, as well as a piece of individually wrapped chocolate candies or anything else that will remind the client of you.
4. Return phone calls
Regardless of which generation a buyer belongs to, if they’re sitting in front of your listing and they’re very eager to see it, many will decide to phone you. For decades, the statistics on how many listing agents return buyer and buyer agent phone calls have been abysmal.
I can’t tell you how many times I’ve spoken to all cash buyers who couldn’t get the listing agent to call them back, even when they said they wanted to write an offer.
In terms of your marketing, it makes no sense to waste money marketing if you are not going to follow up on the leads you generate. If you can’t personally return calls, consider hiring an assistant, or better yet, make the move to an AI assistant who is available to convert those leads 24/7. Two excellent sources are Structurely and Roof.ai.
5. Create a lead-generating brochure box
Brochure boxes are an often-overlooked source of lead capture. The secret is to combine old-school street visibility with on-the-spot-instant lead conversion using a QR code that links to a digital brochure or dedicated landing page.
Make sure the page includes a lead capture form, a quick video tour and perhaps even a neighborhood guide. Most importantly, add a call to action like, “Want a private tour? Text me directly at 555-1212.”
This strategy gives you 24/7 lead generation — all you have to do is call them back as soon as possible before they go on to another property.
6. Become a hyperlocal content creator
If your social media feed is 90 percent listings, it’s time for a refresh by doing a deep dive into being the hyperlocal expert. Be the agent who posts about what’s happening in your neighborhood or local market area.
Shoot short, engaging videos where you talk about the best coffee shops, farmers markets, new restaurants or hidden neighborhood gems. Interview local business owners and preview upcoming community events.
This builds trust and engagement. Most importantly, you will start appearing in local searches as a resource for people who are looking for information, not just homes. Less than 10 percent of the population will move this year, but they’re all interested in what’s happening around them. Best of all, who do you think they’re most likely to call when they get ready to list or purchase?
Refreshing your marketing doesn’t require a total overhaul, only a few smart, creative shifts that will keep you top of mind with clients and prospects. From leveraging your listings to leading with local expertise, small changes can generate big results. The key is consistency, creativity and a commitment to always tracking what is working in today’s ever-shifting market.
by Bernice Ross | Jun 23, 2025 | Industry, News Feed
Saving clients and prospects money is the best marketing you’ll ever do, trainer Bernice Ross writes. You’re building trust and creating an unbeatable personal connection. Here’s how to do it.
Since the NAR commission suit settlement, buyer agents have faced new rules, new documents and a new normal. This month, Inman drills down on Today’s Buyers Agent with the fresh marketing strategies, skills and tools buyer agents are using to prosper in changing times.
Let’s face it: Your clients don’t care about your Instagram followers or whether you or your company is No. 1. In today’s tough market, what they care about most is money. If you want to build a database of raving fans, here are seven ways you can help save them serious money.
1. Save them an average of $18,000
Down Payment Assistance (DPA) programs remain one of the least-used tools in most agents’ financial arsenal. According to Rob Chrane of DownPaymentResource.com, over 80 percent of all non-homeowners believe they need 10-20 percent down to purchase a home.
The reality? There are more than 2,400 DPA programs across the U.S. that offer grants, forgivable loans, matching savings plans or subsidized mortgages to help buyers get started with far less.
Moreover, over 84 percent of the homes in the U.S. (and in some cases mobile homes) are eligible for DPA. Here’s what you need to know:
- The average amount of DPA granted last year was $18,000.
- Two-thirds of the DPA programs are for first-time buyers or those who have not owned a home in the past three years. The other third is available to those who currently own homes, provided they meet certain financial requirements.
- Veterans, teachers, first responders and low- to moderate-income buyers may qualify for grants as high as $40,000.
- Mortgage Credit Certificates (MCCs) offer up to $2,000 annually in dollar-for-dollar tax credits for the life of the loan. This is not a deduction, but a direct reduction in the amount of how much you pay in taxes. In some markets, this can add up to $60,000 in savings for a homeowner paying off their mortgage over 30 years.
- You can “stack” DPA programs. One savvy agent in Seattle stacked five programs to help her buyers buy a property worth almost $1 million.
If you aren’t already working with a lender who specializes in these programs, now’s the time to identify these companies/organizations in your market.
An easy way to see what DPA is available on any active listing on Realtor.com or Zillow is to navigate to the mortgage payment information on that listing. If DPA is available, both sites will list the programs and the resources available for that specific property.
2. Show clients how to eliminate PMI early
Private Mortgage Insurance (PMI) is an invisible money leak for many buyers. Most of your clients and prospects will have no idea they can eliminate PMI, not when they have paid down 20 percent of their loan, but when they can demonstrate they have a 20 percent equity position in their property. (This will require an appraisal.)
If you’re in a market that has appreciated 20 percent since any of your clients purchased their home or if they have added square footage, updated the kitchen or even improved landscaping significantly, that new value could eliminate their PMI now rather than years from now.
PMI typically costs hundreds of dollars a month. Canceling it early puts thousands back into your client’s pockets, turning you into their financial hero.
Check out Bankrate for an excellent guide to cancelling PMI.
3. Give your new listings more market time
Did you know that Friday is the best day to put a new listing on the market? The reason is that most people look on the weekends, plus on Saturday and Sunday, there is no new competition coming on the market until Monday.
I’ve seen numerous studies over the years showing that this approach almost always nets the seller more money as compared with listing on any other day of the week.
4. Boomerang buyers
“Boomerang buyers” are former homeowners who lost their homes in foreclosure, sold in a short sale or who may have had to move into a rental due to a loss of income from a divorce, illness or other event.
Many don’t realize that they can qualify to buy a home as a first-time buyer (provided they haven’t owned a property in the past three years) with a reduced down payment and down payment assistance.
If any of your past clients have experienced this situation, advise them that they may now be able to become a homeowner again and to stop paying their landlord’s mortgage rather than their own.
5. Maximize credit scoring strategies before preapproval
Credit scores not only influence whether a borrower will qualify for a loan but also the rate and terms. To help your clients maximize their credit score before applying for a mortgage pre-approval, have them do the following:
- Check their credit score on Equifax, Experian and Transunion for errors. Correct those before applying for a loan.
- Make sure all their payments are made on time.
- Advise them to avoid applying for any other type of credit, especially before closing, because along with increased credit comes an increase in payment obligations, which in turn can destroy their ability to qualify.
For example, when we purchased our new home, we only had one car but needed two. Nevertheless, we postponed picking up our new SUV and ordering new furniture until the transaction closed and we had our keys in hand.
- Do not close existing credit card accounts. Instead, advise your clients to buy a small item on the card every couple of months and pay it off immediately. While having a card that has no balance is great, it’s even better for your credit score when you use it periodically to purchase one item and pay it off.
- Explain how to improve their “credit utilization ratio.” While this sounds complex, it’s simply a matter of them paying down their existing debt. Banks typically like to see a credit utilization ratio of 30 percent or less when assessing mortgage applications. This means using no more than 30 percent of your total available credit across all credit cards and other revolving credit accounts. Keeping your credit utilization low demonstrates responsible credit management to lenders.
A better interest rate and terms translate into lower monthly payments, and the potential for long-term savings in the tens of thousands.
6. Leverage energy rebates and tax credits in 2025
With the Inflation Reduction Act in effect, there are now dozens of federal, state and utility rebates available for energy-efficient home upgrades. Sadly, most buyers are completely unaware of them.
The IRS has published a comprehensive list of options as well as a series of articles on this important topic. Some of the most notable ones cited include:
- Be efficient by saving on your energy bills by upgrading your appliances. Water heaters, air conditioners and certain stoves qualify for a 30 percent tax credit when you upgrade to newer more-efficient models.
- Don’t wait — insulate. Having air leaks or poor insulation in your home is like watching money literally escape through the cracks. Don’t let it happen to you! Weatherize your home with a 30 percent tax credit on insulation, doors and windows.
- Under the Inflation Reduction Act, you can get a tax credit for 30 percent of the cost of installing clean energy systems in your home, including solar panels, wind turbines, battery storage and more.
- Heat pumps are rapidly gaining popularity as an energy-efficient option for home heating and cooling. With a 30 percent tax credit available for a range of heat pump solutions (up to $2,000 per year), it’s a great time to investigate if this clean technology is right for your home.
- Local utility companies often offer their own rebates. Check their websites for what’s available now, and share it, not only with your current buyers and sellers but also with past clients and your sphere.
7. Help your global buyers save tens of thousands of dollars
If you’re working with buyers who are from outside the U.S. and they do not have green cards, you absolutely must advise them to see an immigration attorney who specializes in tax law for foreign investors in the U.S. prior to writing an offer on any property. Here’s why.
- If your buyers purchase and take the property in their own name, they will be unable to deduct depreciation if this purchase is an investment property, nor will they be eligible to do a 1031 tax-deferred exchange.
- In addition, the entire amount of their sale proceeds when they sell, whether it was an investment or their primary residence, will probably be subject to both state and federal income tax.
- Here’s the biggest challenge, however. Failing to use an offshore LLC could result in their offshore income being taxed by U.S. authorities in some states. The most notable case is in California, where, if this issue is not addressed, it could result in a substantial part of all their offshore income becoming subject to California state income tax.
The bottom line is that saving clients and prospects money is the best marketing you will ever do, whether it’s helping them obtain DPA, cutting their PMI, finding rebates or helping them obtain a more favorable mortgage at a better rate. Not only are you helping them, but you are also creating connection and trust, the foundation for building raving fans, referrals and repeat business.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, the founder of Profit.RealEstate and a national speaker, author and trainer with over 1,500 published articles.
by Bernice Ross | Jun 18, 2025 | Industry, News Feed
Since the NAR commission suit settlement, buyer agents have faced new rules, new documents and a new normal. This month, Inman drills down on Today’s Buyers Agent with the fresh marketing strategies, skills and tools buyer agents are using to prosper in changing times.
Even if you have errors and omissions insurance, being a defendant in a lawsuit can have a huge negative impact on both you and your business. Being deposed by a superstar litigator is your worst nightmare. Everything you say can be twisted and, in many cases, turned against you.
Hopefully, you have never been or will be in any real estate litigation. If you want to keep the attorneys at bay, here is a list of behaviors to avoid as well as best practices that can keep you out of trouble.
Wrong place, wrong time
What’s really upsetting is that you can do everything right and still end up in litigation. Sometimes you’re just in the wrong place at the wrong time.
For example, there was one case where the seller failed to make a major disclosure about the property. The seller went bankrupt, so the plaintiff’s attorney turned to the agents and the other people involved in the transaction.
When the attorney discovered that the painting contractor had errors and omissions insurance, he was named as a defendant as well, along with the agents and brokerage because they also had E&O insurance.
6 best practices to avoid litigation
Below you will find six common sources of real estate litigation as well as six strategies to avoid being sued.
1. ‘What’s that spot on the ceiling?’
Even if you are a roofing expert, never answer this question. I had two listings where the brown spot on the ceiling turned out to be a beehive with over 100 pounds of pounds of honey.
Best practice: Avoid diagnosing any issue regarding the condition of the property. Instead say:
“I don’t know what caused the stain on the ceiling. If you are interested in the property, then you should hire a competent roofer and conduct a thorough physical inspection to thoroughly investigate the condition of the property.”
In terms of what you put on your mandated written disclosure documents, avoid diagnosing there as well. Instead, describe what you see: “Brown stain noted on living room ceiling.” Or, “Buckled sidewalk noted adjacent to Ficus tree in front yard.”
2. We aren’t going to disclose that old inspection report
Sellers often don’t want to disclose previous inspection reports, especially if the report caused their transaction to be canceled. Failure to disclose is always a poor idea. Here’s why.
A geological inspection on a house revealed that it could collapse during an earthquake. The first set of buyers walked away from the property.
The listing agent failed to disclose the geological report to the second set of buyers. The house collapsed during the Northridge Earthquake and two people died. Needless to say, the settlement was several million dollars.
Best practice: When you have a transaction that falls apart due to the physical inspection, it’s smart to disclose it to the buyer. If the seller won’t disclose the report, walk away from the listing. It’s simply not worth the risk.
3. Where’s the property line?
While the seller may swear under oath that they know exactly where the property line is, don’t believe it. In a case where the sellers said the fence was the property line, they were actually off by 1 foot. That mistake cost them over $200,000.
Best practice: When a buyer asks about where the property line is say:
“I don’t know. If you want the exact location of the property lines, hire a surveyor.”
4. How much will the seller really take for the property?
A luxury agent had a listing that was priced at $2.4 million. When a journalist asked her where she thought the property would sell, she said $1.8 million. When the seller read this in the paper a few days later, he filed a lawsuit for an unauthorized price reduction. The judgment against her and her brokerage was over $2 million.
Best practice: When a buyer asks you how much a seller will take for the property, there’s only one correct answer:
“The only way to know for sure is to write an offer.”
In fact, you can’t even represent that the seller will sell for the asking price because in a multiple-offer situation the property could sell for over asking.
5. Is this a good family neighborhood that has a low crime rate?
You may believe that a property is located in a great neighborhood; however, that can all change if the wrong tenant or owner moves into just one house.
Best practice: When a buyer asks you about the characteristics of the neighborhood, including crime statistics, ethnic composition of the residents, or “families” that live in the area, you cannot comment. If you do, you run the risk of violating the fair housing laws. Instead, provide them with links to census, crime and school data where they can search out this information for themselves.
6. It’s a new property — do I really need a physical inspection?
If there was ever a time to have a thorough physical inspection, it’s when a buyer purchases a new property. For example, in one of the new homes that we purchased, the plumbers hooked up the hot water to one of the toilets — talk about being steamed.
Best practice: On all new properties, make sure that the buyer does a thorough physical inspection and walk-through prior to closing. The buyer has leverage before the transaction closes. Afterward, some builders aren’t very good at following up on post-close problems.
Ultimately, your first line of defense is always to follow the Golden Rule. Never say anything negative about anyone, never represent what your buyer or seller will do, and never diagnose the condition of the property.
Instead, have your clients use trained professionals to evaluate the property. Also, for additional peace of mind, order a home warranty policy as well.
Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, the founder of Profit.RealEstate and a national speaker, author and trainer with over 1,500 published articles.
by Bernice Ross | Jun 16, 2025 | Industry, News Feed
Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
Thinking about buying a second home to use as a short-term rental (STR) or adding a rentable unit to your primary residence? Dreaming of scaling into a full-blown business with multiple Airbnbs and Vrbos? While STRs are often hyped as a fast track to wealth, the reality is far more complicated than what you see on TikTok. If you’re serious about entering the STR market, here’s exactly what is required to succeed.
Make the shift from tourist to investor
Having a great location where you have a beachfront view or where you can ski directly to the lifts from your unit is great but avoid making the mistake of choosing a property based upon what you would rent. When you’re investing, the decision must be tied to a variety of other factors that are even more important than the location.
1. ALWAYS investigate the local regulations and restrictions governing the property BEFORE you begin your property search
Many popular cities such as Austin, New York, San Francisco, Honolulu and large parts of Florida, have severely restricted or banned short-term rentals. For example, Austin has very specific requirements governing how homeowners may use part or all of their primary residence as an STR. Other areas require all STR stays to be a minimum of 30 days.
Check the zoning and HOAs
Even in short-term-rental-friendly markets, neighborhood HOAs and condo associations often prohibit rentals under 30 days. If you’re looking at a condominium property, always check the property’s HOA’s CC&Rs to make sure short-term rentals are allowed.
Use data tools
Platforms like AirDNA, Rabbu, and Mashvisor let you compare occupancy rates, average daily rates (ADR), and seasonality for Airbnb and Vrbo listings side-by-side. By the way, don’t assume Airbnb is your best choice. Vrbo is strong in many vacation markets.
2. Airbnb vs. Vrbo: Which one is right for you?
Both platforms offer short-term rentals, but they often serve very different types of travelers. The question is what type of guests would you like to attract?
Airbnb
Airbnb appeals more to urban travelers, younger guests, digital nomads and quirky stays. Think: tiny homes, Airstreams and well-designed condos near downtown attractions.
Vrbo (Vacation Rentals by Owner)
Vrbo attracts families and larger groups looking for traditional vacation homes, often in beach towns, mountain resorts and suburban getaways.
Vrbo guests often stay longer and spend more
Their average booking value tends to be higher, but they also expect more space and amenities, including full kitchens, multiple bathrooms and kid-friendly features.
Cross-listing is smart
Most successful hosts list on both Airbnb and Vrbo (and sometimes Booking.com), using tools like Lodgify, Guesty for Hosts, or Hostaway to sync calendars, automate messages and avoid double bookings. Guesty claims that users who switch from Hostaway to their platform increase their revenue by 16.4 percent.
3. Buy a property that performs — not just one that looks good
Not every cute cottage is a winner. To succeed with short-term rentals, you need a property that guests love and that fits your management strategy.
Size matters
One-bedroom units often get higher occupancy, while three- to four-bedroom homes attract family groups on Vrbo and command higher nightly rates.
Outdoor amenities boost income
Fire pits, hot tubs, BBQs and fenced yards add value, but pet-friendly may add the most.
Themed properties stand out
A mountain retreat, midcentury modern hideaway or coastal beach bungalow can help you charge more and get booked faster.
Avoid big renovation projects
Unless you’re experienced with permits, design, code, supply chain issues, time delays due to slow responding city/county inspectors, unexpected costs can destroy your return.
4. Beware: Pitfalls that can turn your investment into a money pit
Short-term rental ownership isn’t just mortgage + dreams. There are layers of costs that can turn a profitable property into a money pit.
Furnishing and staging
In terms of your budget for furniture, decor, kitchenware, linens, cable, internet, etc., it’s smart to hold your budget between 10–15% of the property’s value.
Licensing, taxes and inspections
These requirements can vary based on the city, the state, subdivision or even a specific condominium building. For example, some cities require short-term rental permits, business licenses, hotel taxes and annual safety inspections. Penalties for noncompliance can be steep.
Caveat: Your homeowner’s insurance policy doesn’t cover short-term rentals
Standard homeowners’ insurance does not cover STRs. Resources for STR insurance include the following companies:
- Proper: Offers comprehensive short-term rental insurance, including property damage, liability and lost income.
- Safely: Known for its flexible “pay as you go” model and short-term rental coverage.
- CBIZ: Provides tailored insurance solutions for short-term rental businesses.
- American Family Insurance: Offers short-term rental coverage as an add-on to existing home insurance.
- Allstate: Offers HostAdvantage home-sharing insurance with a discount.
- Nationwide: Offers comprehensive protection for landlords with short-term and vacation rental property.
Vrbo’s damage protection is separate
Unlike Airbnb’s AirCover (which has limits), Vrbo allows hosts to set damage deposits or require guests to purchase protection, providing you with control but also increased paperwork.
5. How will you manage your short-term rental?
There are three options when it comes to managing your short-term rental: handle it all yourself, hire a property manager or use a hybrid model.
Do-it-yourself
As mentioned above, use tools such as Lodgify, Guesty for Hosts, or Hostaway to sync calendars, automate messages and avoid double bookings. Other useful tools include:
- Hospitable for automated guest messaging and channel management
- PriceLabs for dynamic pricing and revenue management
- Turno Automated cleaning scheduling for short-term rentals worldwide.
Hire a local property manager
Expect to pay 20 percent to 30 percent of gross rental income. This is ideal if you don’t live near the property or are seeking true passive income. Thorough vetting of your property manager is an absolute must.
Hybrid approach
Handle bookings and messaging yourself but outsource the cleaning and maintenance. This reduces costs while keeping you involved in guest experience and reviews.
6. Marketing your short-term rental: Good images mean more bookings
Your photos will make or break the number of bookings you receive. Here are some important guidelines to follow.
Hire a professional photographer
High-resolution, professionally shot images are one of the best investments you can make. Properties with great photos often see up to 40 percent more bookings.
Stage your STR like a boutique hotel
Cozy throws, coffee setups and books on the nightstand evoke a lifestyle, not just a short-term stay.
Highlight key amenities
Pools, views, fire pits, bunk rooms and spacious kitchens should be front and center. Also, if you’re property is “pet friendly,” make sure that is featured as well. If there’s a local dog park or hike and bike trail nearby, be sure to show that as well.
Photograph all the spaces in your STR
Include outdoor areas, entrances, workspace setups and bathrooms — guests want to see everything.
7. Provide your guests with the little touches that make a big difference in your reviews
The guidelines below are essential to getting great reviews and booking repeat business.
Be in constant communication with your guests
Respond quickly when your guests reach out to you or risk receiving a poor review. Both Airbnb and Vrbo reward responsive hosts with better visibility.
Cleanliness is king
A missed crumb or unwashed dish can tank your reviews. Systematize cleanings and quality control.
Overdeliver
Provide a basket of local snacks, a handwritten welcome note, games for kids or a guide to local restaurants. These little touches make a big impact on guest satisfaction and future bookings.
8. Additional resources
Letting strangers into your short-term rental, particularly if it’s also your second home, isn’t risk-free. Here are additional steps to take that can reduce the chance of damage or complaints.
Guest vetting
Consider minimum stay requirements, ID verification or even hosting only guests with prior positive reviews.
Smart locks and cameras
Use code-based entry, doorbell cams (at the front door only).
Have strict house rules
Spell them out in the listing as well as clearly posting them on-site. Include quiet hours, guest limits, and rules for smoking, pets and events.
Insurance and deposits
Airbnb’s AirCover provides up to $3,000 in damage protection, but it’s still recommended that you carry commercial STR insurance. Vrbo allows hosts to require damage deposits or renter protection directly from guests.
Other issues to consider include booking your short-term rental, security, noise monitoring, protecting your property and guest vetting.
- Hostfully provides direct booking websites as well as digital guidebooks for assistance.
- Minut is a great service that not only monitors the noise in your STR like NoiseAware does, but also detects “crowd events,” temperature and cigarette smoke as well.
Short-term rental buyer checklist:
Before you buy, ask yourself:
- Are short-term rentals legal in this location?
- Is this a high-demand market for Airbnb and Vrbo?
- Have I identified how the cleanings, emergencies and other communication will be handled?
- Have I budgeted for furniture, insurance, taxes and software?
- What makes my listing more attractive than others nearby?
- Would I want to stay here?
If you answered all these questions, “Yes,” you’re ready to take the next step and launch your STR business.
