How to Make Money in Short-Term Rentals Without Owning a Home

The short-term rental market offers huge earning potential but you don’t need to own a property to get your slice of the pie. There are smart, creative ways to make money in this industry without the hefty costs of buying a home.

Kyle Loveland, Managing Partner at Dreamspace and Hostaway’s Solutions Engineer, shared eye-opening strategies during Hostaway’s recent webinar on how to break into the market — no down payment or deed required.

Here are five key takeaways that will have you thinking outside the box.

1. Owning Property is Optional

Owner-operator partnerships

Collaborate with property owners who may lack the expertise to manage short-term rentals. Offer your services to manage and optimize their listings on platforms like Airbnb or Vrbo in exchange for a percentage of the revenue or performance-based milestones.

As Kyle puts it, “You’re basically helping the owner make more money while learning the ropes of the short-term rental business yourself.” 

Property management

If you prefer a more hands-on approach, consider property management. Take it up a notch by handling everything for property owners — from guest communication to cleaning. You can charge 20-40% of the rental revenue, and if you're managing a few properties, this can quickly turn into a full-fledged business.

Rental arbitrage

With rental arbitrage, things really get interesting. You rent a property long-term and then sublet it as a short-term rental. 

The barrier to entry is relatively low because you don’t need to own the property, but you will need to negotiate with landlords to get them on board. Emphasize the perks for them — like guaranteed rent and fewer tenant headaches.

Just make sure to run the numbers and check out local rental laws before you jump in.

2. Professional Photos Make All The Difference

Once you’ve secured a property to manage or sublet, the next step is making sure it stands out. And trust me — photos are everything. Kyle shared how professional photos helped one of his properties, Octopus Cottage, perform significantly better on Airbnb.

Listings with high-quality images grab potential guests' attention, drive clicks and can even help you rank higher on platforms like Airbnb. On the other hand, dark or cluttered photos will have guests scrolling right past. 

Kyle suggests investing in professional photography to showcase your property’s best features — from board games to a fully stocked kitchen to nearby attractions. Great photos often make the difference between a listing that gets booked and one that gets overlooked.

3. Optimize Your Listing with Detailed Descriptions and Amenities

While great photos grab attention, it’s the description that convinces guests to book. Don’t just list amenities — tell a story. Think about the experience you’re offering. 

Is your place perfect for remote workers with blazing-fast Wi-Fi? Or maybe it’s the ultimate family getaway, stocked with board games and a cozy kitchen for home-cooked meals.

The more specific you are, the fewer questions potential guests will have. A detailed listing reduces uncertainty and makes them more likely to book on the spot.

4. Find Your Niche to Stand Out

If you really want to stand out in the crowded short-term rental market, it’s all about finding your niche. The phrase “riches in the niches” is spot on here. Whether it's pet-friendly luxury homes, tiny cabins in the woods or family-friendly stays with a home theater, having a specific focus will attract the right guests.

Tools like AirDNA and Pricelabs can help you research popular amenities and demand trends in your area. Check this data against the features that are in short supply on platforms like Airbnb to see what’s missing. For instance, if you notice only a few places offer a hot tub or a gym, that’s your chance to tap into an underserved market. 

5. Use Technology to Automate and Scale

Between managing guest communication, setting prices, scheduling cleanings and keeping up with maintenance, it can get pretty overwhelming — especially as you add more properties to the mix.

To help tackle these challenges, here are some tools Kyle uses in his business:

• Property management software- Use a PMS like Hostaway, to manage your listings across Airbnb, Vrbo and Booking.com in one place. Strong channel integrations and reliable two-way API connections can minimize errors and streamline your operations.

• Pricelabs- Automatically adjusts your prices based on market demand, so you can boost profits without constantly tweaking rates manually.

• AI messaging tools- These tools automate guest responses and booking confirmations, saving you loads of time. Plus, platforms like TouchStay send out check-in details and digital guidebooks automatically, cutting down on repetitive questions and improving the guest experience.

• Breezeway or Turno- These tools help manage your cleaning schedules, ensuring your properties are always guest-ready with minimal effort on your part.

From Small Steps to Big Success

You don’t need to own property to succeed in the short-term rental market. Whether you’re managing properties for others or using rental arbitrage, the right partnerships and technology can help you build a profitable business. 

By investing in professional photos, optimizing your listings and finding your niche, you can stand out in this booming industry — no homeownership required.