Which Type of Vacation Rental Property Should You Invest In?

Vacation rental properties are essential for tourists who need a place to stay while traveling. But unlike a hotel, these properties are usually apartments, condos, and other accommodation types that guests rent out for a short period. They’re also typically fully-furnished and have everything that a guest would possibly need while they’re renting. 

 But starting your own vacation rental business requires significant investment, time, and energy, so you should let professionals from Avery Carl’s property management company, The Short Term Shop, help you get a head start. These are some of the most common types of vacation rental properties you can invest in: 


Studios are room-like properties, often found in high-rise condominiums, but don’t have divisions to separate each room inside. Although they are small, they still have basic amenities like a kitchenette, bathroom, and bed. Since they are small, they can usually accommodate one to two people, so they’re not usually the top choice among families and small groups. However, they’re one of the most affordable options, and they’re usually located in and around the CBDs, which makes traveling around the area very convenient.


More commonly known as a condo, this is a type of accommodation close to other homes within a community, usually in mid-to high-rise buildings. Most condos that are offered as Avery’s rental properties offer full amenities and are maintenance-free and upscale. They are also often found either in urban areas, by the beaches, or near public transportation, so they’re very appealing for guests who want to fully explore the area they’re in. 

 Since condos are a bit bigger than studios, they are spacious enough to accommodate a small family or group. Aside from that, they offer privacy compared to other types of vacation rental properties.


Cabins are usually found in forested destinations and are often one-story bungalows with only one floor. Since they have limited space, they can’t accommodate many people. They are also quite attractive, and their charm, especially during winter, can entice tourists to book the place. They’re also perfect for people who are more interested in hiking, hunting, or even just experiencing the holidays in a cabin in the woods.

Beach house

Beach houses are often found in places with a beautiful view of the sea. These properties offer a premium for guests not only for the stunning views but also for the convenient access to the beach and/or swimming pool and for their privacy. Aside from that, they are also very spacious, so large groups and families can book these properties. 

 However, since these usually offer complete amenities and are beachfront properties, they cater more toward customers who can afford high-end prices. 


Apartments are usually located in low- to high-rise buildings. They’re quite ubiquitous as they can be found in towns, suburbs, and most commonly in cities and touristy destinations like beaches. They also are usually maintenance-free and offer basic amenities, lower upfront costs, and convenient public transportation access. 

 Since most apartments often offer only the bare minimum for amenities, they often have an affordable price tag. Most apartments can also accommodate small families or groups. 


Houses are the quintessential vacation rental property since they offer complete amenities and ample space for larger groups and families. Like apartments and condos, they can also be found in almost every destination, be it a beach or in the middle of the city. They’re also usually larger than other properties when the whole unit is rented out, but some listings are just rooms inside an apartment unit (more commonly known as bed & breakfasts).


Townhouses are properties that are full-sized but attached to another unit on one side. Usually, they offer less space than larger types of vacation rental properties, but they provide complete amenities that would only be found in full-size, detached homes or villas. Also, they are found in neighborhoods that have shared amenities that can be used by everyone in the community. 

Townhouses are slightly less expensive than villas and other properties that cater to the high-end market, but they still offer good value. They can also accommodate larger families and groups. 


These properties are often separated from other villas in a resort or a community to provide more privacy for guests. They also belong to the more premium end of the market, so people who choose to stay in them can avail of all the usual amenities and a few extras like hot tubs, pools, or private beach access. Since they’re almost always found near beaches, offer excellent amenities, are fully-furnished, and are often very spacious, they appeal to tourists willing to spend money to experience luxury while traveling. 


These are typical yet charming looking homes that usually have one floor and are often found in residential areas. These properties are perfect for older people, small families, or couples who want to have some privacy and a quiet stay. Bungalows offer full amenities so that guests will have a very comfortable stay.

Bungalows have a wide price range, but they generally cater to the mid-range market. 


Chalets are very similar to cabins, but they’re built from more durable materials and are often more rugged. Aside from that, they look more stylish than the latter and offer more luxurious amenities that are not available in more quaint cabins. These properties are often found around hillsides, especially near ski resorts. They are very popular among tourists who love to go skiing and are often fully booked during winter. 

Unique Properties

Now that you know that vacation rental properties are not only limited to hotels and motels, you should also get to know about a trend that’s gaining more popularity among more adventurous tourists. Some of these properties often blow most tourists’ minds since they offer a special experience in the most unusual way. 

 Some of these unique properties include houseboats, barns, campervans, RVs, treehouses, nature lodges, yurts, shipping containers, and a lot more. When you decide to invest in the short-term rental business, be it through Avery’s rentals or elsewhere, you need to appeal to customers.

The Pros and Cons of Vacation Rental Properties

When you follow the right steps to buy a vacation rental property, they are more than likely to become a stable income source. But the biggest payoff in investing in vacation rentals is you’ll have better cash inflow. It is also a good way to diversify your portfolio.

 You should also utilize rental platforms such as Airbnb or VRBO because you will reap the benefits of short-term rentals. You might even generate better profits if your property sees a very high demand. But you should consider talking to a realtor/vacation rental specialist first so that you’ll know all the rules that you need to follow and some tips to grow your business.

However, like any investments, vacation rentals have both great potential and significant risks. Here are some of the pros and cons:


  • More income: A typical Airbnb listing can generate an average of $900 every month for its host. If you invest in property in tourist destinations where demand is high, your income can increase exponentially.
  • Having your own vacation home: Aside from generating income, vacation rental properties will be the perfect accommodation for your next vacation. You would save money by steering clear from hotels, and you’d have an ideal venue for parties, family gatherings, etc.
  • Tax perks: Renting a property for more than two weeks is often considered a business, which is very helpful for tax purposes. You can also write off other expenses like maintenance, improvements, hosting fees by rental platforms, cleaning, etc.


  • Managing the property: Vacation rentals are still a business, so it needs to be managed appropriately if you want to increase profits. But you can make things a bit easier by hiring a team, such as Avery Carl’s property management company,  to help you grow your investment, especially if you’re still new to running a business. 
  • Finding customers: Marketing your property is very important in growing your business. Although finding customers is difficult, there are some simple ways to make your property more appealing. Besides listing your property on rental platforms, you should make your property more cozy and attractive through its furnishings and set a price that offers good value while still earning income. 
  • Regulations and restrictions: Since rental platforms have seen rapid growth in the past few years, some cities and HOAs put up rules and regulations concerning short-term rental properties, so make sure to do your research. 

 Even though this list may be a bit of a downer for your enthusiasm, you can still have profitable vacation rentals like Avery Carl by listening to expert advice.


Investing in vacation rentals is one of the best ways to have passive income. Since there are many types of properties that you can spend your money on, you will have more choices to suit the specific destination you want to invest in and your budget. But your initial enthusiasm isn’t enough to succeed in this business; you need to plan. 

If this is your first foray into running a business, you can seek the services of a professional management company like Avery Carl’s property management company to ensure that your investment will grow and be sustainable. 

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Kishan Rana

Kishan Rana is a SEO Consultant and professional Blogger. He has 5+ years of experience in SEO. He loves Blogging Very Much.

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