Short-term rentals (STRs) through platforms like Airbnb and VRBO allow property owners to rent their property for periods ranging from one night to several months. STRs can generate significantly higher income than long-term rentals but come with more regulatory complexity, higher operating costs, and active management requirements.
9 steps across 1 sections
1. Deductible Expenses
- Mortgage interest (prorated for rental use)
- Property taxes (prorated)
- Supplies (toiletries, linens, kitchen items)
- Platform service fees
- Professional photography
- Repairs and maintenance
- Depreciation (27.5 years for residential)
- Property management software
- Smart home devices (locks, thermostats, cameras for exterior only)
Common Mistakes
- Operating without permits
- Relying solely on platform insurance
- Not collecting all required taxes
- Underestimating operating costs
- Poor guest communication
Pro Tips
- Start on one platform, then expand
- Price dynamically
- Invest in professional photography
- Automate guest communication
- Build a "welcome guide."
Sources
- Short-Term Rental Regulations 2026 Guide — Minut
- Los Angeles Airbnb Regulations 2026 — StragentHub
- 10 Tax Tips for Airbnb/VRBO — TurboTax
- Tax Guide for Short-Term Rental Hosts — Block Advisors
- VRBO Host Requirements 2026 — Baselane
- Seattle STR Regulations 2026 — StragentHub
- 2026 STR Regulation Trends — Avalara MyLodgeTax
- Short-Term Rental Taxes — Bette Hochberger CPA