Short-Term Rental Hosting 101: 10 Things You Need to Know Before Starting

Renting out a property as a short-term-rental can be a great way to earn extra income, but success isn’t guaranteed. Hosting requires planning, effort, and a strong understanding of what short stay rental accommodation is.

Before jumping in, you need to know the key factors that affect your success. From legal requirements to guest expectations, there’s a lot to consider. If you want to maximise your earnings and avoid common mistakes, it helps to follow best practices for new hosts. These strategies can make your short-term-rental stand out and attract more bookings.

Here are 10 essential things you must know before becoming a short-term-rental host.

1. Understand Local Regulations

Before listing your property, check your local laws. Many cities and states have restrictions on short-term-rentals, and failing to comply can lead to fines, legal trouble, or even getting banned from hosting.

Key regulations to look into:

• Council and zoning laws – Some areas require permits or limit where short-term-rentals can operate.
• Short-stay rental caps – Some regions restrict the number of nights you can rent per year.
• Strata and building rules – Apartment complexes may have bylaws that prohibit short-term-rentals.
• Tax obligations –Income from short-term-rentals is taxable, and some states impose additional levies on these properties.

New hosts often assume the platform manages legal compliance. However, while short-term-rental platforms provide guidelines, you are responsible for following local laws. In some cases, you may need to register your property or obtain approval before listing.

If you’re unsure about compliance, consult a lawyer or property expert. Staying informed about local regulations helps avoid fines and protects your ability to operate.

2. Set Realistic Pricing

Pricing plays a huge role in your short-term-rental success. Set your rate too high, and guests may book elsewhere. Set it too low, and you might struggle to cover expenses.

Factors to consider when pricing your listing:

• Location – Properties in high-demand areas can charge more, while those in quieter areas need competitive pricing.
• Seasonality – Rates fluctuate based on demand. Holidays, festivals, and peak seasons allow for higher prices.
• Competitor analysis – Check similar listings in your area to ensure your price is competitive.
• Guest fees and cleaning costs – Short-term rental platforms take a service fee, and cleaning expenses should also be factored into your costs.

Using dynamic pricing tools such as platform pricing tools or third-party software can help you adjust rates based on market trends. These tools analyse competitor prices, demand, and seasonality to optimise your earnings.

If managing pricing and bookings feels overwhelming, consider professional short-term-rental management services. They handle everything from pricing strategy to guest communication, helping you maximise your income without the hassle.

A well-priced listing attracts more bookings and ensures steady income throughout the year.

3. Invest in Quality Photos

Your photos are the first thing potential guests see, and high-quality images make your listing more attractive.

Photography tips to improve your listing:

• Use natural lighting – Take photos during the day for the best results.
• Showcase key features – Highlight your best amenities, such as a balcony, workspace, or stylish kitchen.
• Declutter and stage the space – A clean, well-organised home looks more inviting.
• Capture different angles – Give guests a full view of each room.

Listings with professional photos tend to get more bookings. If hiring a photographer isn’t an option, use a smartphone with good lighting and a steady hand to take clear, well-composed shots.

Great photos set guest expectations and increase your chances of securing bookings.

4. Write a Compelling Listing Description

A great listing description helps your property stand out and attracts the right guests. It should highlight your best features while setting clear expectations.

What to include in your description:

• An engaging opening line – Example: “Escape to a modern beachfront apartment with breathtaking views.”
• Detailed property features – Mention bed sizes, amenities, and any standout features like a coffee machine or workspace.
• House rules – Be upfront about rules like no smoking, pet policies, or quiet hours.
• Local attractions – Guests appreciate recommendations on nearby restaurants, parks, and landmarks.

For more tips on making your short-term-rental listing stand out, check out this comprehensive guide.

A clear, detailed description helps guests feel confident in booking your space.

5. Prepare Your Property for Guests

Before accepting bookings, make sure your property is fully equipped for guests.

Guest-ready essentials:

• Fresh bedding, towels, and toiletries.
• A well-stocked kitchen with cooking basics.
• Reliable Wi-Fi with easy-to-follow connection instructions.
• Heating and cooling options for all seasons.
• Safety features like smoke alarms, fire extinguishers, and secure locks.

If you’re renting out a shared space, ensure guests have privacy. Offer storage space, locks on doors, and clear guidelines for shared areas.

A well-prepared space leads to better reviews and repeat bookings.

6. Decide If You Need a Property Manager

Managing a short-term-rental takes time. If you travel often or have multiple properties, hiring a property manager can help.

Services a property manager provides:

• Guest communication and check-ins.
• Cleaning and maintenance coordination.
• Pricing adjustments and listing optimisation.

A manager takes a percentage of your earnings, but their expertise can lead to better reviews and higher occupancy rates. If this sounds like a good option, check out this guide on finding the right short-term-rental property manager.

7. Plan for Cleaning and Maintenance

Cleanliness is one of the most important factors in guest reviews. Whether you clean the property yourself or hire a professional, consistency is key.

Cleaning options:

• Self-cleaning – Cost-effective but time-consuming.
• Hiring a cleaner – Ensures professional results but adds to expenses.
• Using a cleaning service – Ideal for high turnover but requires reliable scheduling.

Regular maintenance is also essential. Fix leaks, replace worn-out furniture, and ensure all appliances work properly.

8. Screen Guests Carefully

Not all guests are a good fit for your property. While short-term-rental platforms have safety measures, it’s smart to screen guests before accepting bookings.

How to screen guests:

• Check their profile for verified ID and past reviews.
• Ask about their trip purpose if details seem vague.
• Be cautious of last-minute bookings from new users with no reviews.

If something feels off, trust your instincts. You can decline requests that don’t seem right.

9. Get the Right Insurance

Standard home insurance doesn’t always cover short-term-rentals. Many policies only protect against damages from long-term tenants or owner-occupants, leaving short-term-rental hosts exposed to risks like guest-related damage, theft, or liability claims. Without the right coverage, you could face significant out-of-pocket costs if something goes wrong.

 While short-term-rental platforms offer host protection programs, they have limitations. AirCover provides some protection for property damage and liability, but it doesn’t cover everything. For example, it may not fully compensate for lost income due to cancellations, wear and tear, or certain types of guest-related damage. That’s why many experienced hosts invest in short-term-rental insurance.

A specialised insurance policy can protect you against:

• Property damage – Covers repairs or replacements due to guest negligence.
• Liability claims – Protects against lawsuits if a guest is injured on your property.
• Loss of income – Helps cover lost revenue if your property becomes uninhabitable.

Check with your insurer to ensure your policy includes short-term-rental coverage. A good insurance plan gives you peace of mind and financial protection while hosting.

10. Master Guest Communication

Clear, prompt communication improves guest satisfaction and can lead to better reviews.

Best practices for guest communication:

• Respond quickly – Fast replies improve your ranking and build trust.
• Provide detailed check-in instructions – Include directions, lockbox codes, and parking details.
• Create a house manual – List Wi-Fi details, appliance instructions, and emergency contacts.
• Check in with guests – A simple message after their first night helps address any concerns early.

A host who communicates well creates a better guest experience, leading to more positive reviews and bookings.

Frequently Asked Questions (FAQs)

1) How much money can I make as a short-term-rental host?
Your earnings as a short-term-rental host depend on several factors, including your property’s location, size, amenities, and occupancy rate. High-demand areas like major cities or tourist hotspots tend to generate higher revenue, while properties in quieter suburbs may see lower earnings.

Seasonality also plays a role. During peak seasons, such as holidays or local events, you can charge higher rates. On the other hand, off-peak periods may require price adjustments to stay competitive.

On average, a short-term-rental host can make anywhere from a few hundred to several thousand dollars per month. Using dynamic pricing tools helps optimise your rates based on market demand. Additionally, maintaining a high rating through great service and cleanliness ensures repeat bookings and positive reviews, increasing your earning potential.

To maximise your income, consider offering long-term discounts, upselling experiences, or adding extra amenities like a hot tub or workspace to attract more guests.

2) Do I need to be available 24/7 as a short-term-rental host?

You don’t need to be available 24/7, but quick responses improve guest satisfaction and increase bookings. Many hosts use automated messaging tools to send check-in instructions, FAQs, and welcome messages without constant manual effort.

If you travel frequently or have multiple properties, you may want to hire a co-host or invest in short-term-rental management services to handle guest communication and on-site needs. Some property managers take care of everything from guest inquiries to cleaning and maintenance, making short-term-rental hosting completely hands-off.

Even if you manage the property yourself, setting clear expectations helps. Provide a detailed house manual with all necessary information, such as Wi-Fi passwords, appliance instructions, and emergency contacts. This minimises guest questions and allows you to step away without worry.

A well-structured system lets you maintain a great hosting experience while balancing personal time.

3) What happens if a guest damages my property?
Accidents happen, and while most guests respect your property, there’s always a risk of damage. Short-term rental platforms provide host protection programs, which offer some level of protection for hosts, but they may not cover everything. That’s why having short-term-rental insurance is a smart move.

If damage occurs, follow these steps:

1. Document everything – Take photos or videos as soon as you notice the issue.
2. Contact the guest – Politely ask about the damage and see if they acknowledge responsibility.
3. File a claim with your short-term-rental platform – Use the Resolution Centre within 14 days of checkout to request compensation.
4. Claim insurance if necessary – If the platform doesn’t cover the full cost, your rental insurance policy should help.

To reduce the risk of damage, set clear house rules, screen guests carefully, and use security deposits for high-value properties. A well-managed short-term-rental reduces the likelihood of major issues.

4) How do I increase my short-term-rental bookings?
To get more bookings, your listing needs to stand out from the competition. Here’s how to attract more guests:

1. Use high-quality photos – Listings with clear, well-lit images get more views.
2. Write a compelling description – Highlight unique features and nearby attractions.
3. Price competitively – Check similar listings and adjust rates based on demand.
4. Offer flexible check-in options – Self-check-in makes it easier for guests to book.
5. Respond quickly – Fast replies improve your ranking on short-term-rental search results.
6. Encourage reviews – More positive reviews build trust and boost your visibility.

Additionally, promoting your short-term-rental outside the platform, such as on social media or through local travel groups, can attract more direct bookings.

5) Can I list a rental property on a short-term-rental platform?
Yes, but you must check lease agreements and local laws before listing a rental property on a short-term-rental platform. Many landlords and property managers have specific rules about subletting, and some leases explicitly prohibit short-term-rentals.

If your lease allows subletting, it’s best to:

• Get written permission from your landlord to avoid legal issues.
• Offer a revenue-sharing agreement to incentivise landlord approval.
• Check building regulations if you live in an apartment complex, as strata bylaws may restrict short-term stays.

Failing to get permission can result in eviction, fines, or legal disputes. If you’re looking for a hassle-free way to manage a rental property, consider finding the right short-term-rental property manager to handle everything professionally.

Start Your Short-Term Rental Hosting Journey the Right Way

Hosting on a short-term-rental platform can be a great way to generate income, but it requires careful planning. From pricing strategies to short-term-rental management, success depends on staying informed and providing a great guest experience. For more best practices for new hosts, visit bnbbooking.com.au for expert guidance and management solutions.

Please call us today on 1300 146 514 to learn more or leave an enquiry and we will get back to you as soon as possible.