Setting Up Your First STR: A Complete Beginner's Guide

Starting your first short-term rental can feel overwhelming. There are properties to evaluate, furniture to buy, listings to create, and guests to prepare for. The good news? Thousands of people successfully launch STRs every month, and with the right approach, you can too. For a detailed checklist to guide you through each step, see our First STR Checklist Guide, and make sure to review our STR Supplies Checklist for everything you need to stock.

This guide walks you through every essential step, from choosing your property type to greeting your first guest. Whether you're converting your spare room or purchasing a dedicated investment property, these fundamentals apply to every new host.

Choosing the Right Property Type

Your first decision is what type of property to offer. Each has distinct advantages and challenges that affect your investment and hosting experience.

Spare Room or Private Room

Renting a room in your primary residence is the lowest-risk entry point:

• Minimal startup costs since you're using existing space
• No additional mortgage or lease to worry about
• You're on-site to manage guests and prevent issues
• Great for testing if hosting is right for you
• Lower earnings potential than entire properties
• Less privacy for you and your guests

Entire Apartment or Condo

A dedicated unit offers more earning potential with moderate complexity:

• Higher nightly rates than private rooms
• Complete privacy for guests increases appeal
• HOA restrictions may prohibit or limit STRs
• Building rules might create compliance challenges
• Shared walls mean noise concerns

Single-Family Home

Standalone houses typically earn the most but require more investment:

• Highest earning potential in most markets
• No HOA restrictions in many cases
• More space means more to furnish and maintain
• Yard and exterior require ongoing care
• Higher purchase price and operating costs

Unique Properties

Treehouses, yurts, cabins, and converted spaces stand out on platforms:

• Premium pricing for unique experiences
• Higher search visibility due to novelty
• Niche market appeal attracts specific guest types
• Permitting challenges may be more complex
• Maintenance can be specialized and expensive

Essential Setup Steps Before You List

Research Local Regulations

Before investing any money, understand what's legally allowed:

• Zoning laws: Does your area permit short-term rentals?
• Permit requirements: Do you need a business license or STR permit?
• Tax obligations: What occupancy taxes must you collect and remit?
• HOA rules: Do your community covenants allow STRs?
• Insurance requirements: What coverage do you need?

Secure Proper Insurance

Standard homeowner's insurance typically doesn't cover STR activities:

• STR-specific policies cover commercial guest activity
• Liability coverage protects against guest injuries
• Property damage coverage for guest-caused damage
• Loss of income coverage if you can't host during repairs
• Platform protection (like Airbnb's AirCover) supplements but doesn't replace insurance

Set Up Your Business Structure

Even for a single property, treating your STR as a business is wise:

• Separate bank account for rental income and expenses
• Accounting system to track all transactions
• LLC consideration for liability protection (consult an attorney)
• Tax preparation for Schedule E reporting

Furniture and Supplies Basics

Furnishing your STR requires balancing durability, comfort, and budget. Here's what you need to prioritize.

Bedroom Essentials

• Quality mattress: Don't skimp here. Guests notice bad sleep immediately.
• Mattress protector: Waterproof, essential for longevity
• Multiple pillow types: Firm and soft options for different preferences
• White linens: Hotel-quality, easy to bleach and replace
• Blackout curtains: Essential for guest sleep quality
• Bedside tables and lamps: Functional lighting on both sides
• Luggage rack: Keeps bags off beds and floors

Bathroom Must-Haves

• White towels: Multiple sets per guest, hotel-weight quality
• Quality showerhead: Upgrade from builder-grade
• Toiletries: Shampoo, conditioner, body wash, hand soap
• Hair dryer: Wall-mounted or under sink
• Toilet paper holder with spare: Never run out
• Plunger: Discreetly available
• Trash can with lid: Keeps things tidy

Kitchen Necessities

• Cookware basics: Pots, pans, baking sheets
• Dinnerware: Plates, bowls, mugs for maximum occupancy plus extras
• Utensils and tools: Can opener, corkscrew, spatula, tongs
• Coffee maker: This is non-negotiable for most guests
• Coffee, tea, and basics: Starter supplies guests appreciate
• Quality knives: At least one good chef's knife
• Cutting boards: Multiple sizes

Living Areas

• Comfortable seating: Sofa and chairs for your capacity
• Entertainment: Smart TV with streaming capabilities
• WiFi: Fast, reliable internet is essential
• Workspace: Desk or table area for remote workers
• Lighting: Multiple sources, not just overhead

Creating Your First Listing

Choose Your Platform(s)

Most new hosts start with one or two platforms:

• Airbnb: Largest user base, good for beginners, strong search traffic
• VRBO: Popular with families, often longer stays
• Booking.com: Strong international traveler base
• Direct booking website: Consider adding later to reduce fees

Write a Compelling Title

Your title should include:

• Property type (cabin, condo, house)
• Key feature or location highlight
• Something that differentiates you

Examples: "Mountain View Cabin with Hot Tub" or "Downtown Loft - Walk to Everything"

Craft Your Description

Structure your description for scanners:

• Opening hook: What makes your place special?
• Space description: Walk them through each area
• Location highlights: What's nearby?
• Guest access: What can they use?
• Other notes: House rules, check-in process

Take Quality Photos

Photos are the most important element of your listing:

• Natural light: Shoot during the day with curtains open
• Wide angles: Show full rooms, not tight corners
• Clean and staged: Remove clutter, add simple touches
• Key areas: Bedroom, bathroom, kitchen, living room, exterior
• Details that sell: Hot tub, view, unique features

Pricing Strategies for New Hosts

Research Your Competition

Before setting prices, study your market:

• Search Airbnb for similar properties in your area
• Note their nightly rates, minimum stays, and amenities
• Look at their calendars to see occupancy
• Read their reviews for insights

Start Lower to Build Reviews

Your first reviews are critical. Consider pricing 15-20% below comparable listings initially:

• Lower prices attract first bookings faster
• More bookings mean more reviews to build credibility
• Once you have 5-10 positive reviews, raise prices gradually
• Airbnb's algorithm favors new listings with good reviews

Use Dynamic Pricing Tools

Automated pricing tools adjust rates based on demand:

• PriceLabs: Popular choice with market data
• Wheelhouse: Good for beginners
• Beyond Pricing: Simple setup
• Airbnb Smart Pricing: Built-in but often underprices

Consider Your Costs

Calculate your minimum viable rate:

• Mortgage or rent
• Utilities (higher with guests)
• Cleaning costs per turnover
• Supplies replenishment
• Platform fees (typically 3% host fee)
• Taxes and insurance

Preparing for Your First Guest

Create a House Manual

A comprehensive guide reduces questions and problems:

• WiFi password (make it prominent)
• Check-in/check-out instructions
• How to use appliances (TV, thermostat, washer)
• House rules reminder
• Local recommendations (restaurants, attractions)
• Emergency contacts
• Trash and recycling procedures

Set Up Your Communication System

Guests expect quick responses:

• Enable notifications on your phone
• Create saved messages for common questions
• Prepare check-in instructions to send 24 hours before arrival
• Set up automated messages if available on your platform

Establish Your Cleaning Process

Clean turnovers are essential for good reviews:

• Hire a cleaner or create a detailed checklist for yourself
• Allow enough turnover time between guests (4-5 hours minimum)
• Stock backup supplies for quick restocking
• Take photos after each clean for documentation

Do a Test Stay

Before your first guest, stay in your property yourself:

• Sleep in the bed - is it comfortable?
• Take a shower - is water pressure good?
• Cook a meal - do you have what you need?
• Watch TV - does everything work?
• Note anything confusing or missing

After Your First Booking

The First Review Matters

Go above and beyond for early guests:

• Welcome basket with local treats
• Personal note thanking them for booking
• Quick response to any questions
• Follow-up message during stay to ensure satisfaction
• Review request after checkout

Learn from Feedback

Every guest teaches you something:

• Note any complaints or suggestions
• Fix issues immediately
• Update your listing based on questions received
• Add amenities guests request frequently

Track Your Numbers

Start measuring from day one:

• Revenue per booking
• Occupancy rate
• Average daily rate
• Expenses per turnover
• Net profit after all costs

Common First-Time Host Mistakes to Avoid

• Overpricing initially: Better to start low and build reviews than sit empty
• Cheap mattress: Guests will mention it in reviews
• Slow communication: Response time affects your ranking
• Unclear check-in: Confused guests leave frustrated reviews
• Skipping insurance: One incident can wipe out years of profit
• Ignoring regulations: Fines and forced closure are real risks
• No backup plan: What happens if your cleaner cancels?