OTAs
Starting an STR Business
How to Start a Vrbo Business: 101 Guide
While owning a vacation rental property can be more profitable than running a traditional long-term rental, it also comes with challenges. So if you are considering becoming a Vrbo host, there’s much to consider before diving in. Read to discover how to start a Vrbo business and what you need to do to make it a success.
Renting out your property short-term has become increasingly popular in recent years. Sites like Vrbo or Airbnb make it easy for anyone to create a listing and make extra money.
But while owning a vacation rental property can be more profitable than running a traditional long-term rental, it also comes with challenges. So if you are considering becoming a Vrbo host, there’s much to consider before diving in.
Read on to discover how to start a Vrbo business and what you need to do to make it a success. You may also want to download our free detailed guide on building an efficient short-term rental business.
How to Start a Vrbo Business: Essential Steps
If you own a secondary home in a popular travel destination, Vrbo could be a good opportunity to bring in some extra income or even turn your side hustle into a full-time vacation rental business. So where do you start?
Research local STR laws and regulations
Before planning your Vrbo business, it’s essential to consider legal issues first. Research short-term rental laws and regulations in your area to ensure you can rent your space and that it is worth it. Keep in mind that STR regulations vary by state and city, and depending on where you live, there might be specific requirements at the country, state, city, or even property level.
Many state and local governments in large cities and tourist destinations have passed laws restricting the right to rent homes and apartments on a short-term basis. Many localities allow short-term rentals only in specific zones and limit their number, set the minimum and maximum number of days you can rent out your property per year, etc. Some cities even prohibit any forms of short-term rentals.
For example, the local government in Honolulu has passed regulations that ban rental stays under 90 days. And in New York, it’s illegal to rent in the city for less than 30 days without the host present. There are also strict registration, zoning, and maintenance rules for STR hosts, who must provide proof that they live in the properties with their guests.
Local regulations also cover licenses and permits, building safety standards, health codes, liability insurance, and parking. STR laws and regulations are constantly in flux and can be confusing, so it’s essential to check out government websites and contact your local authorities with any questions. It’s a bad idea to rent out your property on Vrbo and its alternatives in violation of state or local STR regulations because you may be fined or suffer other penalties.
Still, the vacation rental market is trending upward, and in many urban areas and popular travel destinations, running a Vrbo rental can be profitable if you treat it as a business. You also need to do your best to provide an excellent experience for your guests, and one of the most important aspects to ensure this is effective and fast communication.
Being available to your guests 24/7 is very challenging, especially when you need to answer their questions and provide the necessary information at the right time. That’s why many successful STR hosts automate guest messaging using tools like Hospitable. Our STR super app lets you automate 90% of guest communication with AI, from initial inquiry to review and beyond.
With Hospitable, you can take advantage of the Suggest with AI and Improve with AI tools available in your Inbox to draft and correct detailed, personalized responses when you message guests manually, upload your guidebooks to the Knowledge Hub to educate the AI about your properties, and opt for a fully automated AI Inbox when you sleep or 24/7.
Budget your expenses
If you want to succeed in the vacation rental industry, it’s essential to approach hosting with a business mindset.
Decide how much time and energy you want to invest in running a Vrbo and set realistic business goals and expectations.
Think about how much money you want to make, how much business growth you project annually, and how long it can take to hit your targets.
Do market research to understand how much you can earn with your STR property and consider all costs associated with starting and running a vacation rental.
The cost to start a Vrbo business will likely vary by location, depending on several factors, including your target guests.
For example, if you want to target backpackers and adventure travelers and start a glamping business on Vrbo, this option requires low investment. But suppose you want to rent out your vacation home to families with children, large groups, or business travelers. You should consider the upfront costs of redecorating and furnishing your property.
You’ll also need money to stock essential supplies and provide basic amenities and extras to ensure your guests feel comfortable during their stay. Other costs include the price of obtaining a business license, extra short-term rental insurance, and expenses related to maintaining your rental property. These include utilities, regular repairs and maintenance, Vrbo fees, subscriptions, hiring a cleaning service, etc.
Understanding these expenses in advance is crucial for managing your expectations about the profitability of your Vrbo rental, so make sure you’ve counted all your costs.
Apply for licenses and permits
There are many areas where property owners must register and apply for permits or licenses if they want to rent out their homes on a short-term basis. Depending on the local STR regulations, this could include getting a general business license, sometimes called a business tax certificate, and a short-term rental license.
A general business license is required for all business owners in most states, and a short-term rental license demonstrates that your rental is up to code and complies with specific safety and health standards. In some cities, you may also need to obtain a permit to rent your property, which involves a home inspection and an annual fee.
You should contact your city or county officials to learn more about what is required of you. You can apply for the license on the city’s website by submitting a relevant form or visiting your local City Hall for the paperwork.
You should also visit your local tax office to get the necessary information about the taxes you must pay as a vacation rental property owner. You may want to check out our article to learn about vacation rental tax rules in the USA and find some valuable tips on how you can keep your income taxes to a minimum.
Remember that opening your door to strangers comes with risks of personal liability and extra taxes owed. But you can protect your personal assets and enjoy tax benefits. Check out our blog article to learn how starting a limited liability company (LLC ) for your STR business can help protect your assets from lawsuits and creditors and save taxes.
Prepare your home for welcoming guests
The next step is getting your home ready for guests, keeping their comfort and convenience in mind. Think about your target guests as you decorate, furnish, and equip your rental space with amenities to ensure it meets their needs and expectations for a great stay.
If you want to attract a wider audience and get more bookings, try to create a comfortable and inviting space for any guest, whether they are a business traveler, a family with kids, or someone traveling with a pet. Invest in practical, durable short-term rental furniture—this way, you can save money in the long run. If you are on a budget, you can mix store-bought items and secondhand pieces, but it's always better to avoid buying the least expensive items.
Remember that many travelers stay in vacation rentals to feel at home even when they’re away. So it’s smart to add cozy, homey touches with a throw pillow, soft blankets, cozy area rugs, interesting artwork, green plants, and other design details.
Check out our article for interior design tips on making your vacation home special and charming potential guests, even during the research stage.
Your Vrbo guests will need essential supplies to make their experiences comfortable, so stock your rental with basic items and extras. Specifically, you must invest in new towels, linens, and bedding. Equip your home with popular amenities that help travelers enjoy their vacation.
Consider checking local Vrbo listings to see what amenities your competitors offer. You may use our Vrbo checklist to ensure you have the proper inventory for every stay so you never fall short of guest expectations.
Consider installing a smart lock to offer your guests a self-check-in. This way, they can have a flexible arrival time and more privacy. Then you’ll need to provide your guests with unique codes, and you won’t have to be there when guests arrive at your property, which means less stress for you and travelers. If you opt for Hospitable, which integrates with popular smart lock systems, it will automatically create and send unique door codes to your guests shortly before check-in.
Set competitive prices
Attracting more bookings while remaining competitive is essential to running a successful Vrbo business. That’s why you’ll need an effective pricing strategy to help you achieve this goal and maximize your revenue potential. But finding that just-right rate isn’t easy—you need to pay attention to market data, seasonal demand trends, and local competition.
When you’re new to Vrbo, you may start with lower prices to appeal to budget-conscious travelers and encourage early bookings. But after you get a few positive reviews, which will help increase your visibility, you should gradually increase nightly rates to align with similar Vrbo properties in your area.
It’s crucial to analyze market trends and adjust prices accordingly to ensure that your listing remains attractive to travelers throughout different seasons or events happening nearby. Use dynamic pricing, an optimization technique based on market supply and demand, days of the week, lead time, and seasonality.
Dynamic pricing is a common approach in today’s vacation rental landscape. It will help you capture the highest number of bookings on Vrbo and make top dollar on every reservation.
Vrbo has its built-in pricing tool, Rate Automation, which provides customized rate suggestions to hosts every 48 hours, but it works only for Vrbo listings. So if you list your properties on other OTAs to reach more travelers, controlling nightly rates and ensuring parity can be very challenging.
There are third-party tools that offer dynamic pricing algorithms explicitly designed for vacation rentals. These tools work with listings on different vacation rental platforms, but they can be costly. The good news is that if you opt for Hospitable, you can get your pricing right across multiple booking channels without overpaying for a dynamic solution to optimize your rates.
Hospitable includes built-in Dynamic Pricing in the Host, Professional, and Mogul plans at no extra cost. If you enable our Dynamic Pricing feature for your property, Hospitable will automatically adjust your rates based on market demand, seasonality, and other factors to help maximize your revenue and occupancy.
Our system will immediately push the current recommended prices to your connected channels, including Airbnb, Vrbo, Booking.com, Agoda, and your Direct booking website. Your rates are then automatically updated every 24 hours based on the latest market conditions.
Create a stellar Vrbo listing
Create an account on Vrbo and set up your listing. First, consider a catchy title that mentions a unique amenity, a special offer, or something that sets your listing apart. This way, you can encourage travelers to click and learn more.
Write an accurate description of your property that showcases your vacation rental’s most significant selling points. Make your description informative and include basic details about everything your guests need. Specify how many rooms and bathrooms there are, what amenities you offer, and what’s nearby. Get creative and highlight the unique features of your vacation rental. Describe the kind of experience guests will have during their stay. Explore the description examples we compiled for you.
Upload at least 20 high-quality photos of your rental in landscape orientation; the more, the better. Include pictures of each room in your home and the outdoor area, and highlight unique features or charming details of your property. Post the photos in chronological order to create something like a virtual tour of your house. You won’t need a professional photographer if you follow the best practices for vacation rental photography.
You’ll also need to provide an accurate address of your vacation rental home, your payment and banking details, set your nightly rates and additional fees, and include clear Vrbo house rules.
Hospitable has a direct, certified integration with Vrbo. If you use Hospitable as your PMS for Vrbo, Hospitable becomes the source of truth for your listing data, calendar, and settings.
So with Hospitable’s listing management, you can create and publish a new Vrbo listing directly from your Hospitable account. If you list your property on Airbnb and have received at least three reviews on any other booking platform, you don’t need to manually set up everything on Vrbo. With the Vrbo Partner connection, Hospitable will automatically transfer your listing details.
You can find more tips on creating and optimizing your Vrbo listing to improve its visibility by checking out our blog article on how to list on Vrbo.
Hire a cleaning service
Although many people choose to stay in Vrbo or Airbnb rentals instead of hotels, they still expect the same hotel-quality cleanliness. In fact, cleanliness is a top priority for travelers. That’s why it’s essential to thoroughly clean your STR property during each turnover to ensure it’s ready to welcome new guests.
Of course, you can clean your rental space yourself and save some money. But going a DIY route means you’ll have to live locally and have enough time to carry out a deep clean once a week on average. And keep in mind that during high season, you may be required to clean your rental two or three times a week, with tight turnarounds that can become a constant source of stress.
Outsourcing this task to professionals specializing in vacation rental cleaning will benefit you in the long term. You’ll have to pay for their services, but they will save you the time you can spend on other critical business areas, such as marketing your vacation rental.
Professional cleaners will help you create an inviting environment for your guests, so you’re more likely to get great reviews that can win you more bookings. But you must provide your cleaners with a comprehensive Vrbo cleaning checklist to help you set clear expectations and ensure your team won’t miss anything.
Coordinating cleanings won’t be a problem if you opt for Hospitable as your property management system. With Hospitable Tasks, you can automate turnover cleanings and manage everything stress-free. Just create task rules, add cleaning checklists, and our system will automatically assign work based on check-ins and checkouts. We’ll notify your cleaners about upcoming jobs via email or SMS.
You can also invite your cleaners and other on-the-ground teammates to their teammate portal. Here, your cleaners can manage assigned jobs, complete checklists, share updates, upload photos, and message you directly. You’ll be able to manage all property tasks in one calendar, track progress in real time, and pay your teammates when the job’s done.
Use automation software to manage your rental efficiently
Running a short-term rental property is similar to being in the hospitality business. You need to take care of your guests and your home and deliver a 5-star experience, and that involves a lot of responsibilities and routine work, including:
Responding to booking inquiries
Communicating with guests before, during, and after their stay
Managing guest reviews
Handling bookings, cancellations, and refunds
Setting and adjusting competitive nightly rates
Restocking supplies for each stay
Organizing guest check-ins and checkouts
Managing the cleaning and maintenance team, and more
If you have enough time, you can manage everything yourself and fully control all your daily operations. Managing your short-term rental business can be rewarding, but it is very time-consuming, especially if you have more than one property.
You can also hire a property manager to do the work for you and get real estate passive income. But property managers charge hefty fees that can drain your profits. So what can you do if you don’t have enough time to manage your Vrbo business yourself and don’t want to hire external help?
Use reliable short-term rental software like Hospitable and automate most of your routine tasks. Hospitable is an all-in-one solution with advanced functionality to help you run your STR business on autopilot.
With Hospitable’s solution for self-managers, you’ll be able to ensure that everything runs smoothly and streamline many routine operations, including
Responding to booking inquiries and answering guests’ questions with the help of AI
Creating an automated message flow for each guest
Assigning tasks to your cleaners and maintenance team
Implementing dynamic pricing
Managing multiple listings on Vrbo, Airbnb, Booking.com, Agoda, Google Vacation Rentals, and more
Automating guest reviews, etc.
Under Vrbo Partner Connection, Hospitable can act as a Merchant of Record for your Vrbo bookings, processing guest payments and sending payouts directly to you. As a Merchant of Record, Hospitable also handles chargebacks, absorbs dispute losses, and collects and remits Vrbo taxes in supported jurisdictions (all 50 US states, the United Kingdom, and Australia).
We’ll also help you create a fully functional direct booking website and build relationships with guests to drive repeat bookings. Hospitable will help you manage your Vrbo rental more efficiently, minimize costs, and give you tools to scale your business faster.
Analyze your performance
In the STR business, success comes down to using reliable data to make smarter decisions. You need to understand your performance across key business areas, such as your operations, guest experience, occupancy, revenue, and reviews.
That means you need to track key performance metrics (KPIs) that can give you a complete picture of your business health and help you spot opportunities you might otherwise miss. Doing it on spreadsheets (like Excel or Google Sheets) isn’t the best way to track your numbers. It’s time-consuming, requires manual data entry, lacks automated syncing with booking channels, and leaves room for human error.
The good news is that you don’t have to spend time on spreadsheets to make sense of the property performance data. Short-term rental property management software with analytics, like Hospitable, offers integrated dashboards and reporting tools to track key business metrics, making it easy to gain meaningful, actionable insights into property performance and guest behavior.
For example, Hospitable features Metrics, an advanced analytics system that brings all your data together and allows you to see your properties’ performance in real time. Depending on your plan, you can explore the pre-built dashboards with curated performance insights or build your own dashboards for metrics that matter to you and share them with your team.
With Hospitable, you also get a Copilot, your personal AI assistant. It can help you analyze performance and get instant, real-time insights if you ask it simple, conversational questions. Copilot has access to your Hospitable account, including your booking data, calendar activity, task information, messages, and more, and will generate detailed answers that match your business in seconds.
You can use Copilot to check revenue, occupancy rates, length of stay, and booking trends; compare the performance of your listings; and analyze revenue breakdowns. You can ask Copilot to highlight common praises and complaints from guest reviews, get cancellation numbers and trends, show workload distribution across your team, and more. The more you use Copilot, the more it learns how you work, and over time, its suggestions feel more useful.
You may also want to check out our blog article to learn more about how property management data analytics can transform your STR data into actionable insights, enabling you to make smarter business decisions.
The Bottom Line
As you see, there are many things to consider when owning an Airbnb or Vrbo, and success can only come from extensive planning and consistent work. Hopefully, our guide on how to start a Vrbo business will help you make the most out of it.
You need to research, budget, obtain licenses and permits, create an ideal listing, invest time in marketing your property, and do your best to ensure your guests have a memorable experience. You must also invest in vacation rental automation tools to help you run your Vrbo rental effectively.
If you want to scale your vacation rental business eventually, property management software like Hospitable should become an essential part of your operations. It can save you hours by automating your routine and streamlining your management.
Table of contents
Research local STR laws and regulations
Budget your expenses
Apply for licenses and permits
Prepare your home for welcoming guests
Set competitive prices
Create a stellar Vrbo listing
Hire a cleaning service
Use automation software to manage your rental efficiently
Analyze your performance
Common questions
How do you start a Vrbo business?
Start by researching local short-term rental laws to confirm that your property can legally operate as a Vrbo. Then estimate startup and ongoing costs, obtain any required licenses and permits, prepare and furnish the property, set competitive pricing, create an optimized Vrbo listing, arrange reliable cleaning, and establish systems for guest communication and daily operations. Treating the rental as a business from the beginning makes it easier to control costs, deliver consistent guest experiences, and scale later.
What permits do you need for a Vrbo business?
Requirements vary by location. Depending on local regulations, you may need a general business license, a short-term rental license, a specific rental permit, or other registrations related to zoning, safety, health standards, and taxes. Some jurisdictions also require a property inspection and annual permit fees, so check with your city or county before accepting bookings.
How should you price a new Vrbo listing?
Research comparable properties, local competition, market demand, seasonality, and nearby events before setting your rates. New listings can start slightly lower to attract early bookings and reviews, then increase prices as the listing gains visibility and social proof. Dynamic pricing can automate these adjustments; Hospitable updates rates every 24 hours based on market conditions and pushes them across Vrbo, Airbnb, Booking.com, Agoda, and direct booking websites.
Can you run a Vrbo business without a property manager?
Yes. You can self-manage a Vrbo business instead of paying a property manager, especially if you use property management software to automate routine work. Hospitable can handle guest messaging, pricing, cleaning coordination, reviews, multi-channel listing management, and other recurring operations, allowing hosts to stay in control without taking on every task manually.
What tasks can you automate in a Vrbo business?
You can automate guest inquiries and messaging, scheduled communication, cleaning and maintenance assignments, dynamic pricing, review management, calendar synchronization, and multi-channel listing management. Hospitable can also automate smart-lock access and, under its Vrbo Partner Connection, can act as Merchant of Record for eligible properties, handling guest payments, payouts, chargebacks, dispute losses, and supported tax remittance.