The real source of demand for short-term rentals in any given market is the size and strength of the metropolitan areas from which visitors come–that is, feeder cities. You can use feeder city data to predict future demand and make smart investment decisions.

Best Vacation Rental Markets in the Next 5 Years

Understanding where your guests are coming from (feeder cities) can help you predict future demand.

Weigh population growth in feeder cities against the cost of purchasing a home in your market to determine a realistic return on investment (ROI).

Utilize our interactive dashboards to analyze feeder city trends and optimize your marketing and investment strategies.

Are you tired of feeling like you’re missing the boat on the best investment opportunities? Our annual Best Places to Invest report may feel like a race against time for would-be Airbnb hosts that can’t quite swing an investment within the calendar year. If you need more time to get your finances in order and do your homework, you need a different kind of roadmap. 

Enter our guide to the Best Places to Invest in Short-Term Rentals in the Next 5 Years. This is your go-to resource for future-proofing your investment strategy. We give you the insights needed to scout, prepare, and make a calculated investment when the time is right.

AirDNA’s powerful yet easy-to-use tools make hosting and investing a breeze. This means having every insight you need, all in one place, always up-to-date.

Whether you’re a well-seasoned investor or a first-time buyer, you probably have a good grasp on the basics—expected income and operating expenses are obvious considerations when you’re seeking to purchase a rental property. 

Future demand, on the other hand, is tricky. Predicting which markets will be hot in the next 5 years can feel like looking into a crystal ball.

We’ve cracked the code by analyzing Airbnb reviews and Oxford Economics forecasts. We track where guests come from—their "feeder cities"—and combine this with forecasts on population, employment, and income growth local to those areas. The real source of demand for short-term rentals (STR) in any given market is the size and strength of the metropolitan areas from which its visitors tend to come. Essentially, if a feeder city is booming, the vacation spots its residents love will likely thrive too.

Airbnb reviews give us the hometowns of guests, showing where demand originates. Oxford Economics forecasts reveal how these feeder regions will grow over the next five years. In merging these insights, we create a picture of future demand. This ultimately helps you to make informed investment decisions.

Let’s look at Houston, Texas as an example. Houston is a feeder city for several vacation destinations in the region. Within Texas, Fredericksburg, Corpus Christi, and Galveston all benefit from an influx of vacationers from Houston. Many Houstonians also venture a bit farther afield, frequenting Broken Bow, Oklahoma and Hot Springs, Arizona. If the population in Houston grows, then it follows that the number of demand nights in these popular vacation spots will increase, too.

Our methodology is grounded in historical data that proves the relationship between feeder city population growth and STR market demand. Here's how it works:

We tracked guest origins and linked them to feeder cities by analyzing historical Airbnb data (primarily guest reviews). We then examined population, employment, and income trends in these regions over the past five years. 

Our data reveals a statistically significant relationship: for the last two years (2022 and 2023) every 1% population growth in feeder cities correlates with a 2.5-3% increase in STR demand.

The historical perspective on how employment, population and income have actually evolved in the metro areas from which Airbnb guests are hailing provides strong evidence that growing feeder cities drive demand in STR markets.

Many of the same markets that are expected to perform well in coming years, such as Corpus Christi and Fredericksburg, Texas, rose to the top of the leaderboards for population and employment growth between 2018-2023. Keep in mind that the COVID-19 pandemic spurred an unusually high degree of migration, and it's unlikely we’ll see as much population movement in the coming years. 

The similarities in STR market rankings for the last 5 years and the next 5 years is no coincidence. Historical population growth points to movements that have already happened and will continue to impact demand in the future. Anyone who moved somewhere in the last couple of years will contribute to future demand for the next decade. Historical and projected population growth in feeder cities has a compound effect on the short-term rental markets that serve residents of those cities.  

However, a wider range of Western markets made the list for historical income growth: Pinetop-Lakeside and Flagstaff, Arizona; Provo/Orem, Utah; and Durango and Crested Butte, Colorado.

High housing costs and limited housing supply will begin to deter migration to major Western metro areas, or push people out of them entirely. Those metropolitan areas will begin to lag the population and income growth of places like Texas that continue to make room for new arrivals.

While we can't guarantee that past trends will continue, historical data offers strong evidence for how short-term rental demand growth is tied to projected population increases in feeder cities. Our future predictions are based on these proven trends.

Best STR Markets in the Next 5 Years Based on Feeder City Growth

They say everything’s bigger in Texas, and that’s definitely true for population growth. During the COVID-19 pandemic, lots of people moved to Houston and Dallas. These cities added over 250,000 new residents each between 2020 and 2024. Houston is projected to gain another 345,000 people and Dallas 225,000 people by 2028.

What is the impact of this migration on the long-term growth prospects of nearby vacation rental markets? For each short-term rental market on the list below, we averaged the projected growth rates of their feeder cities, weighted by visitor numbers. Population growth in feeder cities translates to more demand nights in the short-term rental markets serving those cities. 

Powered by projected 5-year population growth of 8.0% in Houston, 10.1% in Austin, and 7.3% in Dallas, the central Texas wine country town of Fredericksburg has the highest projected population growth among its origin regions (6.7%). Along with Corpus Christi, which shares the same feeder cities, these two vacation destinations lead the pack for future STR demand.

We tallied up the reviews left by guests—along with their hometowns that they included publicly with their reviews—to map out where guests staying in these top 10 short-term rental markets are coming from. Assuming future residents of booming Texas feeder cities travel similarly to current residents, we expect population growth there to boost STR demand in places like Fredericksburg, Corpus Christi, and Galveston over the next five years and beyond. 

The first non-Texas market to crack the top 10, Broken Bow Lake in Oklahoma, benefits from the same influx of metropolitan Texans. Half of the recent Airbnb reviews there were written by travelers from the Dallas area.

We've mapped out the top 3 origin metro areas for all 10 of the best places to invest in short-term rentals in the next 5 years.

Explore feeder cities for other top markets

Let's put data on promising STR markets into action. If your vacation rental is located in Broken Bow, Oklahoma, digging into Houston data feels irrelevant at first glance. Why focus on origin metro areas? Knowing where your guests are traveling from can give you a huge advantage in predicting demand and tailoring your offerings

Whether you’re an investor hunting for the next hot spot or a host wanting to fill up your calendar, leveraging feeder city insights will give you an edge. 

Identify Growth Markets: Use data to find STR markets with strong feeder city growth, promising a steady flow of future guests.

Informed Property Purchases: Keep an eye on travel trends in feeder cities to understand guest preferences, which can inform your choice of property types and locations. For example, if travelers from Houston prioritize access to water, consider investing in waterfront properties or properties with a pool.

Market Research: Scour reviews from guests in feeder city areas to gather insights on what travelers are looking for. If guests praise specific amenities or experiences, use this information to guide your investment strategy and the upgrades you choose to make before listing.

Targeted Marketing: Focus your marketing efforts on the top feeder cities, tailoring ads and promotions to attract travelers from those regions.

Seasonal Planning: Use monthly STR performance and booking lead time information, accessible through the AirDNA dashboard, to anticipate peak travel times from specific feeder cities and adjust your pricing and availability accordingly. Keep an eye on the school calendar in your feeder city as well as any regional holidays specific to that area.

Local Partnerships: Forge partnerships with local businesses in feeder cities to create travel packages or special deals.

Worst STR Markets in the Next 5 Years Based on Feeder City Growth

Not all markets are poised for growth. Some vacation destinations around the Great Lakes and the southern Sierra Nevada face slow population growth in their feeder cities, affecting future STR demand.

Lake Geneva / Alpine Valley, Wisconsin, sits at the bottom due to the huge influence of Chicagoland visitors. Chicago is expected to lose nearly 1% of its population in the next five years. 

The overall projected population growth rate affecting Lake Geneva / Alpine Valley is still positive at 1.1%, though. This is thanks to forecasted in-migration to Madison, another major feeder city to the Lake Geneva area. 

All of the short-term rental markets in the bottom 10 rely in large part on vacationers from New York City, Los Angeles, Chicago, and Detroit. It’s no coincidence that 3 of these major metropolitan areas experienced huge population declines between 2020 and 2023. New York City lost a staggering 656,000 people. Los Angeles experienced an outmigration of approximately 437,000 residents and Chicago 250,000 residents. 

By 2028, Chicago is projected to lose another 183,000 residents and Los Angeles another 65,000 residents. New York City’s population loss is expected to slow, bumping it off of the bottom 15 list for forecasted out-migration. 

Detroit, on the other hand, is a close third to Los Angeles with an estimated loss of 60,000 residents in the next 4 years. The STR markets in Michigan West and North Coastal will be hit particularly hard by this exodus from the Motor City—6% and 17% of their vacationers come from Detroit, respectively.

For investors, it’s crucial to recognize population growth trends and to connect the dots on what it means for various STR markets. 

Understanding the dynamics of feeder cities can help you make informed decisions and avoid markets with slower growth prospects.

Population growth isn’t the whole story when it comes to predicting STR demand. More people in a feeder city doesn’t mean much for the STR markets poised to benefit if the new residents don't have disposable income to fund their vacations.

That’s why we also look at personal income projections in each region. This extra layer of data reveals intriguing differences and surprising similarities in our rankings.

For example, Broken Bow, Oklahoma ranks high for population growth in its feeder cities but it doesn't crack the top ten for income growth. Whatever positive effect population growth in Texas would’ve had in Broken Bow is likely to be made milder by modest income growth. The effect of these conflicting trends might be seen on a more granular level in years to come—perhaps demand will indeed increase in Broken Bow, but primarily for budget-friendly accommodations.

Conversely, cities like Lubbock, San Antonio, McAllen, and Killeen in Texas don’t show up high in the population growth rankings for their feeder cities but they shine in terms of income growth (ranked 7-10, respectively). This could mean that whatever visitors are drawn to these short-term rental markets will spend more, on average, than vacationers that are coming from feeder cities with little to no income growth.

Conversely, weak income growth can reinforce the negative effect of slow population growth. The Wisconsin and Michigan STR markets that rank lowest for population growth also rank lowest for income growth. The worst STR markets are a clean sweep for the Midwest and a few Appalachian destinations, like the Red River Gorge in Kentucky, and Deep Creek Lake, Maryland. 
While population growth in feeder cities may be the strongest indicator of short-term rental demand growth in benefitting markets, it can’t be considered in isolation. There are other variables at play. Income and employment growth play a crucial role too, providing a fuller picture of future market performance.

Plan your STR strategy based on real booking activity and trends—plus, see how things change year over year.

Investing today: Balance Future Strength with Current Yield

If you’re considering a short-term rental investment, it's crucial to weigh future demand against today's revenue potential. One key metric for this is current yield, which AirDNA tracks for every market. Current yield is calculated by dividing the annual revenue potential of properties in a market by the purchase price of homes in that market. We use our database of STR performance to calculate annual revenue potential and we get home prices from Zillow.

Current yield helps investors understand the potential return on investment (ROI) in the short term. It's not the only factor to consider, but it does serve as a major guidepost. High yield indicates a market where properties make substantial money relative to their purchase cost.

Charting all the destination markets in our database by projected 5-year population growth and current yield helps us find investing sweet spots. “Sweet spot” markets are already delivering a high ROI (higher on the y-axis) and they’re projected to see continued growth in demand from their feeder cities (further to the right). 

This way of visualizing markets helps to differentiate vacation destinations with similar growth projections but differing barriers to entry. Take the Sawtooths in Idaho and Hot Springs, Arkansas, for example. The STR markets have similar projected population growth, with the Sawtooths slightly edging out Hot Springs (4.9% vs 4.7%). However, the Hot Springs market emerges as the clear winner in terms of current yield (15% vs 5%) when you consider the relatively affordable home price ($255,000 vs $1.4 million). 

Current yield can also paint a more nuanced picture for short-term rental markets whose low projected population and income growth might initially scare investors away. Wisconsin Dells, for instance, which ranks third lowest for forecasted population growth in its feeder cities, has an impressive current yield of 26% due to low home prices and high revenue potential. 

Similarly, Red River Gorge, Kentucky has a low projected population growth and income trajectory (11.7% growth compared to 16% or more in top STR markets), but the $137,000 average home price brings its current yield up to 28%. 

Remember, current yield figures are rough calculations of gross revenue divided by home values. They don't begin to account for operating costs like cleaning and property management services. Investors should use these metrics as a starting point and dig into property-level specifics when approaching a purchase decision. Market-wide averages can’t speak to the specific revenue potential and actual sale price of a particular property. 

A comprehensive approach that takes into account both current performance and future earnings helps balance short-term gains with long-term potential.

The following scatterplot is interactive! Hover your mouse over a point on the graph to see more information about that market.

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Explore Your Market’s Top Visitor Origins

Ready to see where your future guests will come from? Our interactive dashboards make it easy to apply the insights from this article to your specific short-term rental market.

The first dashboard is a map of the United States, accessible through the button that follows this instructive image. Select an STR market from the drop-down menu, and watch as lines appear, connecting your market to its feeder cities. This visual representation shows the flow of travelers and highlights the regions driving demand.

Try our interactive dashboard and visualize from what areas of the country guests are traveling from for any given market in the United States.

The second dashboard features a horizontal bar chart, displaying the percentage of travelers from each feeder city for the selected STR market. This breakdown helps you understand the dominant origins of your guests, providing valuable insights for targeting your marketing efforts and optimizing your investment strategy.

The following dashboard is interactive! Select or search for a market from the drop down menu to see feeder cities for that location. 

Hover over any bar in the chart to see the exact percentage of total visitors that each feeder city contributes to the selected STR market.

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This "Best Places to Invest in the Next 5 Years" guide isn't just data—it's fodder for daydreaming. It’s a chance to really start picturing yourself as a short-term rental investor.

Even if signing off on the dotted line for a new property feels far off, the reality is that your journey to successful Airbnb ownership begins right now.  By diving into the data well in advance of making an actual purchase, you can make informed decisions that align with future trends.

Remember, a booming feeder city means a thriving STR market. Armed with this knowledge, you can tailor your investment and management strategies to maximize returns. Dive into those reviews, track demographic trends, and make those savvy property upgrades that will attract guests and boost your revenue.

With the right insights and a bit of foresight, you’re already on your way to a future filled with happy guests and lucrative returns. Start prepping today, and watch your daydreams turn into a thriving reality!

Even if signing off on the dotted line for a new property feels far off, your journey to successful Airbnb ownership begins right now.

Short-Term Rental Insurance: A Buyer’s Guide for Hosts

Key Takeaways
Short-term rental insurance safeguards hosts from guest-related damages and liabilities, filling gaps not covered by standard homeowner policies.
Coverage includes property damage, liability, and lost rental income, but excludes wear and tear and damage from intentional acts or certain natural disasters.
When selecting insurance, hosts should assess coverage limits, terms, provider reputation, and the claims process to ensure comprehensive protection.

Short-term rentals are reshaping real estate and the risks that property owners face. While rentals can be lucrative, they also come with liabilities: damage from a revolving door of guests, larger fixes from undiagnosed maintenance issues, and even potential guest injuries. For all these reasons and more, comprehensive short-term rental insurance is imperative. 

Robust insurance coverage is one of the best tools property owners have to navigate risks wisely. In some cases, it’s the only thing standing between you and a total loss on what seemed to be a lucrative investment. However, insurance is anything but straightforward. 

Read on to better understand the intricacies of short-term rental insurance and the best policies to help protect your assets. 

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What Is Short-Term Rental Insurance? 

Short-term rental insurance is specialized coverage designed to safeguard property owners against unique risks associated with renting their homes or spaces temporarily. Traditional homeowners insurance may not adequately address the distinct risks of short-term rentals, which is why many insurers have started to offer more targeted policies. 

Coverage under a short-term rental policy can encompass a range of potential issues, from property damage caused by guests to liability concerns arising from short-term occupancy. 

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Why Do Property Owners Need Short-Term Rental Insurance?

Short-term rental insurance offers property owners robust protection against a spectrum of potential risks and liabilities unique to the transient nature of short-term rentals. Hosts with short-term rental policies can expect a greater level of: 

Comprehensive Risk Protection: Short-term rental insurance is a safety net for hosts should they encounter one of the many risks inherent in hosting guests. 
Financial Safeguard: For property owners, their real estate investment is a substantial financial asset. Short-term rental insurance mitigates potential losses and offers a protective buffer.
Resilience: Hosting guests introduces distinctive challenges, such as increased foot traffic, frequent turnover, and varied occupancy. Short-term rental insurance addresses these challenges specifically.
Protection Against Unforeseen Events: From accidental damages to unexpected events, short-term rental insurance provides an additional layer of protection.
Preserved Rental Income: Interruptions in rental income due to covered events can impact property owners significantly. Short-term rental insurance helps preserve income by covering losses during such disruptions.
Adaptability to Market Dynamics: The dynamic nature of the short-term rental market requires adaptive solutions, including the more flexible policies that some short-term rental insurers offer. 
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What is Covered By Short-Term Rental Insurance?

Short-term rental insurance covers more than you might think. Policies typically include coverage for: 

Property Damage: Short-term rental insurance covers damages to the physical structure of the property caused by fire, vandalism, natural disasters, and more. This reduces the cost of repairs for property owners.  
Liability Coverage: Protection against liability is a key component. If a guest gets injured on the property or if their personal property is damaged, liability coverage steps in to cover legal expenses and potential settlements.
Personal Belongings: Some policies extend coverage to personal belongings within the rental unit. This may include furniture, appliances, and other items provided by the host. Coverage varies and hosts should be aware of the limits.

Loss of Rental Income: If your property becomes temporarily uninhabitable due to covered risks, short-term rental insurance can provide compensation for the lost rental income while the property is being restored
Additional Living Expenses: If a covered event forces guests to vacate the property temporarily, the insurance may cover their additional living expenses during the displacement (e.g. the cost of other accommodations). 
Medical Expenses: Liability coverage often includes coverage for guest medical expenses resulting from injuries sustained on the property. This can include emergency room visits, surgeries, and related medical costs.
Legal Costs: In situations where legal action is taken against the host, short-term rental insurance may cover legal defense costs, settlements, or judgments up to the policy limits.
Host Protection Insurance: Some platforms offer additional coverage like Airbnb's Host Protection Insurance, which provides primary liability coverage for up to $1 million per claim.

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What Isn’t Covered by Short-Term Rental Insurance?

While vacation rental insurance provides crucial coverage, it's equally important for property owners to be aware of its limitations. Short-term rental insurance usually doesn’t cover: 

Wear and Tear: Insurance generally does not cover the natural wear and tear of the property or its contents. Regular maintenance and upkeep remain the responsibility of the property owner.
Intentional Damage: Deliberate damage caused by the property owner or guests is often excluded. Hosts should emphasize the importance of responsible guest behavior and following house rules.
Acts of War or Terrorism: Damage resulting from acts of war, terrorism, or other similar events may not be covered. Hosts operating in areas prone to geopolitical risks should explore additional insurance coverage.
Nuclear Accidents: Damage arising from nuclear accidents or related events is typically excluded. This is a specialized area of risk that requires separate consideration.
Certain Natural Disasters: While some natural disasters are covered, others may be excluded. Hosts in regions prone to specific natural disasters should carefully assess their policy's coverage in this regard. You may need to purchase a separate policy for wildfires or hurricanes, for example.

Business Activities: If the property is used for commercial purposes beyond short-term rentals, those activities might not be covered. Commercial insurance may be necessary.
Flood Damage: Flood damage is commonly excluded from standard policies. Hosts in flood-prone areas should explore separate flood insurance to make sure they get comprehensive protection. 
Pest or Rodent Damage: Damage caused by pests or rodents may not be covered. Proper property maintenance and pest control are essential for mitigating these risks.

Hosts must thoroughly review policy terms and conditions to understand these exclusions. Additionally, you may need to explore supplemental coverage or specialized policies to address specific risks related to your property and location.

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Types of Short-Term Rental Coverage

Not all insurance policies are created equal. There’s nuance in every single one, down to what they’ll cover and the amount they’ll compensate you. Understanding your options is essential to choosing a policy that’ll work for you when you need it most. 

There are eight different types of insurance policies you should know: 

Homeowner’s Insurance: This is the standard insurance for residential properties. While home insurance provides coverage for personal belongings and liability, it may not offer adequate protection for short-term rental activities. You can also make changes to your existing homeowner’s insurance policy with a home-sharing insurance endorsement, but only if your Airbnb is your primary residence. 
Property Insurance: Specifically designed for rental properties, property insurance policies cover the structure itself against dangers  like fire, theft, or vandalism. It's fundamental coverage for short-term rental hosts.
Landlord Insurance: Hosts who rent out their own home may opt for landlord insurance which includes liability and property coverage. 

Vacation Rental Insurance: Tailored for the unique risks associated with short-term rentals, vacation rental insurance combines elements of homeowner's and property insurance. It provides coverage for property damage, liability, and loss of rental income.
Commercial Insurance: If the short-term rental property is primarily used for commercial purposes, such as hosting events or operating a business, commercial insurance is essential. It provides coverage for business-related liabilities.
Liability Insurance: Liability coverage protects hosts against legal expenses and damages if they are sued for injuries or property damage sustained by a guest during their stay.
Umbrella Insurance: Umbrella insurance offers additional liability coverage that goes beyond the limits of standard policies. It provides an extra layer of protection for hosts facing substantial claims.
Other Specialized Coverages: Depending on the specific risks associated with the property's location or unique features, hosts may explore additional coverages such as flood insurance, earthquake insurance, or bed-and-breakfast insurance.

Rental property owners should carefully assess their individual needs and property characteristics to determine which combination of coverages works best. Combining multiple policies may offer the most comprehensive protection against various risks.

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Airbnb and Vrbo Host Insurance

Airbnb and Vrbo’s insurance programs can significantly impact the level of protection you have for your property. Let's explore the specifics:

Airbnb Host Liability Insurance

Airbnb provides hosts with a valuable safety net through its Host Protection Insurance program. This serves as primary liability coverage, offering protection of up to $1 million. This coverage kicks in if a guest files a claim against the host for bodily injury or property damage during their stay.

Airbnb Host Damage Protection

Complementing the liability coverage, Airbnb's Host Guarantee focuses on safeguarding hosts against damages to their property caused by guests. With coverage extending up to $1 million, this protection is automatically provided to all hosts at no additional cost. Hosts should familiarize themselves with the terms and conditions to ensure comprehensive coverage.

Vrbo Liability Insurance

Like Airbnb, Vrbo offers hosts liability insurance through its Liability Insurance Program. This $1 million primary liability coverage shields hosts from potential claims related to bodily injury or property damage. Hosts can either rely solely on Vrbo’s coverage for risks related to liability, or consider it as additional coverage to an external liability policy. 

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Short-Term Rental Insurance Providers

Numerous short-term rental insurance companies have emerged to address the unique needs of property owners. While they may seem similar at face value, understanding the nuanced offerings of each is key to choosing an insurance policy that will protect your vacation rental business. Here are a few prominent players in the short-term rental insurance market and what you need to know about them: 

Proper Insurance: This insurer stands out for offering substantial coverage limits against property damage and liability. Hosts opting for Proper Insurance can benefit from a policy designed to meet the dynamic needs of the short-term rental market.
CBIZ: With a focus on tailored insurance solutions, CBIZ provides short-term rental property owners with coverage against property damage and liability incidents. CBIZ's offerings are known for their flexibility, accommodating various property types and risk scenarios.
Thimble: Positioned as a provider with a commitment to simplicity, Thimble offers short-term rental insurance that caters to the evolving needs of hosts. Thimble's policies come with user-friendly terms and conditions, making it a suitable choice for hosts seeking straightforward coverage.
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Factors to Consider Before Choosing an Insurance Provider
Coverage Limits: Evaluate the maximum coverage amounts offered for property damage, liability, and other incidents.
Policy Terms: Understand the terms and conditions of the insurance policy, including any exclusions or limitations.
Reputation: Research the provider's reputation within the insurance industry, considering customer reviews and testimonials.
Claims Process: Familiarize yourself with the claims process, including how to file a claim and the provider's track record in settling claims promptly.

Protect Your Property—And Your Pricing

Short-term rental insurance is one thing hosts can’t afford to get wrong. As many details as there are to understand—coverage intricacies and provider options among them—the work is well worth it. Having a comprehensive insurance policy that protects your business is the shield you need to confidently welcome guests into your rental.

As crucial as short-term rental insurance is, though, protecting your business doesn’t end there. Push your proactivity even further by developing a personalized pricing strategy to attract more guests. Dynamic pricing tools automatically optimize your pricing based on real-time insights into short-term rental market dynamics, competition, and many other variables. With both robust insurance coverage and a dynamic pricing strategy, you’re playing both defense and offense—a key to success in the competitive short-term rental landscape. 

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Short-Term Rental Insurance FAQs
What does short-term rental insurance typically cover?

Short-term rental insurance generally covers property damage, liability arising from guest injuries, theft, vandalism, and loss of rental income due to covered perils.

Is short-term rental insurance mandatory for hosts?

While not mandatory, having short-term rental insurance is strongly recommended. It safeguards hosts from financial losses resulting from unforeseen events.

How does short-term rental insurance differ from regular homeowners insurance?

Short-term rental insurance is specifically tailored to the unique risks associated with renting out a property for short durations. It often provides coverage for incidents related to guest stays, which may not be included in standard homeowners insurance.

What factors should hosts consider when determining coverage limits?

Hosts should consider the property's value, potential liability risks, and the cost of rebuilding or repairing the property when determining coverage limits.

Can short-term rental insurance cover property damage caused by guests?

Yes, short-term rental insurance typically covers property damage caused by guests, offering protection against accidental damages.

Are there specific insurance options for Airbnb and Vrbo hosts?

Yes, both Airbnb and Vrbo offer insurance programs designed to address the unique needs of their hosts. Airbnb provides host liability insurance and host damage protection, while Vrbo 

offers liability insurance.

What should hosts do in the event of a claim?

In the event of a claim, hosts should promptly contact their insurance provider, provide necessary documentation, and follow the prescribed claims process to get it resolved.

Can short-term rental insurance cover personal belongings left on the property?

Short-term rental insurance may cover personal belongings left on the property, but hosts should review their policy terms to confirm this coverage.

Short-term rental insurance is one thing hosts can’t afford to get wrong. Explore our comprehensive guide and find the right fit for your property.

Best Vacation Rental Markets in the Next 5 Years

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We've mapped out the top 3 origin metro areas for all 10 of the best places to invest in short-term rentals in the next 5 years.

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