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How to Invest in the Right Property for Short-Term Rental Performance and Long-Term Value

  • Writer: Olga Alvarez
    Olga Alvarez
  • Jun 17
  • 3 min read

Updated: Jun 25

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Not all properties are created equal when it comes to short-term rental success. While aesthetics and location play a role, the foundation of a profitable rental business lies in disciplined property selection backed by data, projections, and market awareness. That’s where I bring a unique edge.

With a background in finance and strategic investment, I don’t simply look at curb appeal. I evaluate properties through the lens of cash flow, ROI, and long-term value creation — combining analytical rigor with hospitality-centered design.


1. What Defines a Smart STR Investment

A high-performing short-term rental is more than just a well-decorated listing. It starts with the right asset, one that aligns with both guest demand and investor objectives. When I work with clients, these are the non-negotiables I assess:

  • Zoning and Regulatory Awareness

A great property means little if short-term rentals aren’t permitted. I carefully review current zoning laws and licensing requirements, while also considering local sentiment and past policy shifts. While future changes are never guaranteed, informed due diligence can help reduce regulatory risk.

  • Guest capacity and LayoutProperties with 3+ bedrooms, flexible sleeping arrangements, and multiple bathrooms tend to outperform due to their ability to host families and groups. More heads in beds translates to stronger gross revenue potential.

  • Location with sustainable demandI prioritize markets with diversified demand sources: tourism, healthcare, corporate travel, events. Seasonality is fine, volatility is not.

  • Layout optimizationFloorplans that enable privacy and togetherness, along with outdoor features like pools, decks, or patios, contribute directly to guest satisfaction and repeat stays.


2. Running the Numbers Like an Investor

Many realtors or cohosts will suggest properties based on aesthetics or gut feeling. I take a different approach, grounded in financial modeling and market comparables. Here’s what I calculate before recommending a purchase:

  • Projected ADR (Average Daily Rate) and occupancy using real-time local data and competitive analysis

  • Gross and net yield projections, accounting for management, maintenance, taxes, and reserves

  • CapEx and furnishing budgets based on the needs of a modern rental-ready setup

  • Sensitivity scenarios that outline performance under different occupancy and rate assumptions

My clients are never guessing. They’re entering each deal with clarity, confidence, and control.


3. Strategic Design That Increases Returns

Once the numbers check out, I help investors elevate the asset through intentional design. Smart staging and targeted amenities not only command higher nightly rates, but also reduce vacancy and enhance guest loyalty.

I consider how the home will photograph, how the layout will flow, and how we can create an emotional connection with guests ,which is what drives consistent five-star reviews and repeat bookings.

Every decision, from furniture to finishes, is made with both the guest experience and ROI in mind.


4. Advisory-Grade Support, Not Just Management

Most property managers focus on turnover logistics. I focus on asset performance. I approach each client relationship like a long-term advisory partnership, aligning property strategy with business goals. Whether you're entering the market, expanding your portfolio, or repositioning an underperforming asset, I bring data, design, and diligence to the table.

You’ll benefit not just from my hospitality know-how, but also from the strategic framework I developed over a decade in Finance and real estate investment.


Conclusion

A beautiful property can earn attention, but only a strategic one builds lasting wealth. When you combine smart acquisition, thoughtful design, and professional management, you don’t just own a rental, you operate a high-performing hospitality business.


If you're looking to purchase or optimize a property for short-term rental income, I’d love to bring both my financial and operational expertise to your project. Reach out to Olga@TurquesaCollective.com to schedule a consultation.


 
 
 

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