Is Your Property Vacation Rental Ready? A Complete Guide for Potential Owners before your hire your Property Manager.

The vacation rental market is thriving, but not every property is automatically destined for success. Before investing in—or converting—your property into a short-term rental, it’s essential to evaluate whether it can attract consistent bookings, earn great reviews, and generate strong returns.

This guide walks you through the nine key factors that determine rental potential—followed by a self-assessment checklist so you can score your property.

1. Location, Location… and Local Appeal

The single biggest driver of vacation rental success is location. Guests choose properties based on access to attractions, activities, and amenities. Ask yourself:

• Is your property in or near a popular travel destination?

• Are there seasonal draws, such as beaches or lakes in summer, ski slopes in winter, or fall foliage routes?

• How close is it to dining, shopping, entertainment, and cultural spots?

A property in a lesser-known area can still succeed—but it will require a compelling hook, such as privacy, unique scenery, or specialized activities. A Property Manager can help you sort and identify the right property if you are looking to purchase the right one, in the right area. They tend to have a cookie cutter property type with certain amenities that performs best in the area.

2. Accessibility and Transportation

Even the most stunning property will struggle if guests can’t get there conveniently. Consider:

• Distance from the nearest airport, train station, or major highway

• Availability of public transportation or rideshare services

• Parking options and ease of arrival

3. Target Market Fit

Identify the types of guests most likely to stay at your property:

• Families with children

• Couples seeking a romantic getaway

• Business travelers

• Adventure seekers

• Pet owners

Matching your property’s features—such as multiple bedrooms, work-friendly spaces, or fenced yards—to your ideal audience will increase your booking potential and justify your nightly rate. A Property Manager will be your expert in positioning your property for the right audience and maximizing your revenue.

4. Unique Selling Points (USP's)

Successful vacation rentals stand out. Evaluate your property’s uniqueness:

• Exceptional views or waterfront access

• Luxurious amenities (hot tubs, pools, fireplaces)

• Design and décor that photographs beautifully

• Proximity to exclusive attractions or experiences

Listen to your Property Manager on this one. Many owners are reluctant to take this advice up front and later find out it would have made them more money to choose the recommended location, add the right amenities, or decorate the house for a 5-star experience. Its much easier to get this right up front, rather than adjust later in between guests after launching.

5. Condition and Comfort

Guests expect a high level of comfort and cleanliness in vacation rentals. Ask:

• Is the property modern, well-maintained, and tastefully furnished?

• Are beds, linens, and seating comfortable?

• Is the kitchen fully stocked and functional?

• Are heating, cooling, plumbing, and Wi-Fi reliable?

Property Managers really come in handy here, as owners can get emotional and set false expectations as to what will work for their upcoming guests. STR Property Managers have been doing this a long time on many houses, and they know what works and what does not. If you need to update the kitchen, put in new beds or matresses, or fully stock the house, DO IT! It will pay dividends later and your will thank your PM when your bank account is growing and you are earning a 5-star review from all your guests.

6. Local Laws and Regulations

Vacation rentals are subject to a growing web of local ordinances, zoning laws, and HOA rules. Research:

• Short-term rental licensing requirements

• Occupancy limits and parking rules

• Taxes and reporting obligations

• HOA or condo board restrictions

Property Managers will know the areas ordinances and be able to guide you on the right property and if you can even do a vacation rental on your property PIN. There are a lot of legality and tax structuring with vacation rentals, and the average owner does not know how to navigate it and gets themselves in trouble either with the local county, or with the state and IRS. Let your Property Manager guide this for you.

7. Seasonality and Occupancy Potential

Some areas have year-round demand, while others are highly seasonal. Estimate:

• Peak season rates and expected occupancy

• Shoulder season opportunities (discounts, events, off-season marketing)

• Realistic annual occupancy percentage based on comparable listings

Many parts of the country have heavy peak and off-seasons. Talk to your Property Manager before purchasing or opening a vacation rental in an area that has a heavy off-season. There are ways to still drive occupancy in the off-season, but it takes a lot of strategy and implementation of marketing and advertising. A good STR Property Manager should have some great ideas for you to overcome the off-season and drive traffic.

8. Marketing and Presentation

Even a perfect property won’t rent itself. Success often depends on:

• Professional photography and video tours

• Well-written, optimized listings on platforms like Airbnb and Vrbo

• Guest-focused descriptions that highlight benefits, not just features

• Responsive communication and clear check-in/check-out instructions

Professional Property Managers that specialize in STR's can help owners earn 15-25% more revenues on average than testing this on your own. These professionals have invested in expensive revenue driving software, and have the insider knowledge to get your property more visible than others in your area.

9. Operating Costs and ROI

Before committing, run the numbers:

• Mortgage or rent (if applicable)

• Utilities, insurance, and maintenance

• Cleaning, supplies, and restocking costs

• Platform fees and marketing expenses

• Property Management Fee and Local Municipality Tax

Compare projected annual revenue against your total expenses to ensure your property can generate a healthy return on investment. A Property Manager can help you evaluate the Gross rental revenue potential and estimated expenses to give you your Net profit projections in the future. Dont be deterred to pay a Property Manager an average of 15% of gross rents. First of all, they will probably help spike your anual revenues 20%+, but they will also figure out how to cut your expenses 5-10%, and ultimately increae your Net Profitability 15-25% at the end of the day.

📝 Vacation Rental Potential Self-Assessment Checklist

Instructions: Score each question from 1 (poor) to 5 (excellent). Add up your points at the end to see where your property stands.

Category	Question	Score (1–5)
Location	Is your property near popular attractions, events, or scenic spots?
Accessibility	Is it easy to reach via car, public transport, or nearby airport?
Target Market Fit	Does your property’s layout & amenities match a specific guest type (families, couples, etc.)?
Unique Selling Points	Does your property have features that make it stand out from others in the area?
Condition & Comfort	Is it modern, well-maintained, and fully equipped for guest comfort?
Regulatory Compliance	Are you allowed to legally operate as a short-term rental in your area?
Seasonality Potential	Can you attract guests in multiple seasons, not just peak months?
Marketing Readiness	Do you have or can you get professional photography, optimized listings, and strong online presence?
Guest Experience	Can you provide fast, friendly communication and a smooth check-in/check-out?
Profitability	Does projected income exceed all expenses with room for profit?

Scoring Guide

• 40–50 points → 🌟 Prime Vacation Rental Potential! Your property is well-positioned to succeed.

• 30–39 points → 👍 Good Potential, but Needs Tweaks. Focus on improving weak areas.

• 20–29 points → ⚠️ High Risk. You’ll need significant upgrades or strategy changes.

• Below 20 points → ❌ Not Ideal for Short-Term Rentals. Consider alternative uses or major renovations.

  
  

✅ Final Thought: A successful vacation rental is more than just a place to stay—it’s an experience. By objectively evaluating your property’s location, features, condition, and market potential, you can determine whether it has what it takes to compete—and thrive—in today’s competitive short-term rental market. Go through this with your STR Property Manager, and be willing to let them evaluate the score as well. The PM will typically be more accurate with the score they come up with, and help you gauge a realistic expectation before you jump all the way in.

If you do not have a Property Manager yet to start the process, check out https://www.chainolakesvacationrentals.com/management and contact the professional today for a FREE initial evaluation of your property. You have nothing to loose.