Nightly Rate
Avg rate you expect to charge/night
Nights Booked
Avg # of nights you expect to book/month
Mortgage
Monthly mortgage payment
Utilities
Monthly costs for heat/hot water, electricity/AC, WiFi & cable
When you’re first starting out as a vacation rental owner, there’s one big question: how much money can I expect to make?
Short-term rental properties can give owners solid revenue returns, and are often more profitable than long-term rentals. But that additional income doesn’t come without costs. From taxes and insurance to cleaning and management fees, it’s important to factor a number of expenses into your income calculations to help paint an accurate picture of your home’s profit potential.
That’s where our vacation rental income calculator comes in. Simply plug in your monthly revenue and expenses below, then sit back as our tool automatically churns out an annual income estimate — all factors considered.
Not sure where to pull those numbers? Take a peek below our tool to understand your income and expense variables in more detail, and check out our bonus resources that can help you make confident estimates.
The first step toward accurately estimating rental income? Defining each term properly. Here’s a quick-reference glossary of what each variable used in our calculator means.
Nightly Rate
Avg rate you expect to charge/night
Nights Booked
Avg # of nights you expect to book/month
Mortgage
Monthly mortgage payment
Utilities
Monthly costs for heat/hot water, electricity/AC, WiFi & cable
Insurance & Property Taxes
Monthly costs for homeowners insurance, liability insurance, property protection plan + your state’s property tax rate
Other Expenses
Monthly sum of HOA & maintenance costs + avg stocking/upgrading costs
Management Costs
Monthly % of income set aside for management/marketing fees (dependent on how you run your business)
Let’s be real: estimating an accurate income for your investment property can be confusing. Certain elements — like mortgage and utility payments — have fairly standard numbers you can enter into the calculator without much math. But others require more contextual consideration. So, let’s walk through each step of the process in more detail.
To accurately estimate nightly rate and expected nights booked, it’s important to understand the current market in your area.
The good news: we’ve analyzed tens of thousands of listings across North America to compile the most impactful performance metrics for you. From nightly rate and nights booked to average lengths of stay and prime booking windows throughout the year, all of the results can be found in our vacation rental market analyses library. Each provides a data-backed gauge of how direct competition performs — and, in turn, how much you might be able to to charge and book.
Once you pull the nightly rate and nights booked averages from those market analyses, plug them into the vacation rental income calculator above to start laying a solid foundation for estimating monthly income (and overall revenue).
Owners who work with Evolve get access to our team of revenue experts and exclusive revenue optimization strategies that are proven to outperform the market.
From taxes to marketing fees, your expense estimate relies heavily on custom quotes and individual choices.
First, add up the monthly costs of your different types of insurance — like homeowners insurance, liability insurance, and a property protection plan.
Evolve owners are automatically covered for accidental damages via our risk protection programs.
Then comes property taxes. How they’re applied varies by state, so be aware of your particular municipal requirements. If you’re not sure, you can plug your rental property’s address into this complimentary tool to receive the right rate.
Once you have an estimate for both, combine the numbers and enter the sum into our short term rental calculator.
Next, input your monthly mortgage payment and utilities.
To incorporate other expenses, first combine monthly HOA and maintenance costs, cleaning fees, and the average expense of keeping your short-term rental inventoried and well-stocked for guests.
If you need to make furniture or decor upgrades, put a price to those overarching updates and divide by 12 before adding to your total monthly view of those additional expenses.
Finally, there are management costs to consider. These fees and how they work look different depending on how you choose to run your vacation rental business.
If you run a vacation rental without any help:
If you use a property manager:
If you work with Evolve (who lists your home on all the best vacation rental sites at no extra cost):
Between the steep fees of traditional property managers and the overwhelming responsibility of a DIY approach, it’s hard to strike a cost-benefit balance that guarantees your success. At least, it was until Evolve came into the picture.
For an industry-low management fee (that’s backed by our Risk-Free Guarantee), we’ll apply a proven-to-work marketing and booking strategy to your vacation rental, boosting your revenue potential while keeping costs (and stress levels) down.
Hop down to the form below to see if you qualify for our services and kickstart a conversation with one of our vacation rental pros.
Real estate is known for being a solid investment, and recent travel trends like eco-friendly staycations, solo travel, and luxurious amenities all highlight the strong demand for accommodations that are unique to vacation rentals. As the market continues to grow, investing in short-term rental today can be a great play for long-term income.
Here are eight major benefits of owning vacation rental property to underscore exactly why it’s a good investment.
In This Article:
Increased Income Potential
Varied Market Opportunity
Offsetting Owner Costs
Even More Revenue Opportunity
A Built-In Vacation
Regular Maintenance & Upkeep
Tenant Flexibility
Home Appreciation
Not only is the vacation rental industry showing plenty of income potential, it’s also creating opportunity for what our real estate experts consider a “high-reward profile.”
Most investors look at cap rate — the ratio between a property’s net income and its market value — as a key measure of success, because it indicates return on investment. Our experts say long-term rental cap rates can hover around an average 4-5% in metro markets (where investors are typically drawn), but short-term rental cap rates can frequently come in at 10% or higher. That’s because long-term rentals lock in rates for longer periods of time, while short-term rentals have more room to dynamically change rates based on demand, seasonality, and other market conditions.
This means your ceiling for profitability is significantly higher when investing in short term rentals vs. long term rentals — and that’s more money that could land in your pocket.
While finding success in long-term rental generally requires a purchase near a major metro area, buyers can find vacation rental properties with profit potential in a wide variety of markets.
And since travelers’ favorite locations are scattered from coast to coast, you’re spoiled with choices for vacation rental investment properties –– whether you’re looking for a beachfront property, lakeside rental, mountainous ski house, or cozy cabin.
Ready to explore your options? Our team helps investors find success in vacation rental investment markets all across the country.
Creating solid revenue streams and growing your income property portfolio are the main investment goals for many second home owners. But there’s also massive value, particularly when it comes to investing for beginners, in offsetting owner expenses from the start.
From mortgage payments and utilities to insurance fees and maintenance costs, vacation rental income can cover monthly expenses and help your home pay for itself in a shorter time frame. Vacation rental owners are also eligible for certain tax deductions, which could help close the gap between income and expenses.
Bonus benefit: using a vacation rental management company with especially low fees (like Evolve) can help owners break even and start earning profit faster.
The best part about investing in vacation rental properties is that great guest feedback makes your home more lucrative over time.
When rental properties hit new listing sites, they have to compete with established competitors for visibility and bookings. But the more five-star experiences you deliver (along with smart responses to any poor reviews), the more sites like Airbnb and Vrbo will show your property to browsing travelers — making it more likely to earn bookings.
Best-in-class hospitality also makes it easier to raise daily rates (when the market allows for it), increasing your profit margins on any given stay as you establish the value of your vacation rental property.
Unlike long-term rental properties, a vacation rental investment is also a place where you can get away. It provides the luxury of carving out time to spend with family and friends, or to switch up your work-from-home space — without necessarily needing to spend money on accommodations each time you travel.
In other words, you earn rental income and boost revenue when you’re not there, but also save money when you’d like a change of scenery yourself.
When you frequently host new guests, you’ll be able to keep close tabs on your property during cleanings and maintenance. This regular upkeep can prevent long-term issues and maintain your property’s condition better than long-term rentals, which may suffer from a neglectful tenant.
With frequent access to your property, you can inspect for damages or wear, prep for seasonal changes, and quickly address any issues while they’re still manageable.
While some owners prefer the stability of a long-term tenant, short-term rental investments can help mitigate the impact of ending up with a problematic person leasing for a year or more, or having to weather lengthy vacancies between renters.
Payment is also more streamlined with vacation rentals. Since stays are typically paid for upfront, it can reduce the risk of rent arrears or non-payment issues that are more common with long-term tenants.
As with all smart real estate investments, you can expect your vacation rental’s market value to appreciate over time. So, if and when you become ready to sell, you’d likely earn more than the previous owners did when you bought it.
Your home will also have a track record as a vacation rental to appeal to the next investors, so you can use its earning potential to your advantage. If you work with Evolve, we’ll provide you with historical performance metrics, as well as feature your property on our website and connect you with vetted realtors that specialize in short-term rentals.
To help you target the right people when your home goes on the market, Evolve’s real estate experts can help you sell directly to buyers who are looking to invest in vacation rentals.
Investing in vacation rentals might feel like a big undertaking, but Evolve is here to guide you at every stage of the journey — whether you’re just starting out or consider yourself an industry pro. Our experts can help you:
And if you’re hoping to lock in a short term vacation rental investment with proof of performance, our listings for sale page features homes that already have a successful track record.
No matter where you are or plan to buy, we’re here to help you reach your vacation rental goals.
Digital nomads, rejoice: Work and play no longer have to be separate. While you’re still remote, get some fresh air without using all of your vacation days. Switching up your routine a little can inspire new thinking and deepen your focus — all while you enjoy all the luxuries of vacation on your off-time.
Ready to get out of the house? Pick one of these places based on how you like to feel at work and change up the scenery.
Make your co-workers jealous by joining the company meeting poolside. Lounge in the sun while you knock projects off your list, then enjoy a crisp plunge in the water. Bonus: all of our homes are vetted in person, which means these pools are as good as they look.
Soak in the desert sun from this Goodyear home with a resort-style hot tub and pool combo. Work on your tan while you work from the sprawling patio, complete with a fully shaded outdoor area. The interior’s open layout and farmhouse furnishings are so beautiful that you’ll want to stay in and make meals at home — but when you’re ready to get out, grab ice cream at The Frozen Monkey and take a stroll around South Lake Park.
If you’re feeling fancy, this Florida short-term rental is like stepping into a palace you can call your own. Here, 6,500 square feet of space is yours — meaning you can find a new place to work remotely every day. Sit al fresco in the expansive outdoor cabana or lounge by the palm tree-lined pool worthy of a magazine shoot. On weekends, day trip to the Florida Keys or take it easy with a bottle of local wine from Schnebly Winery.
The moment you set your bag down, the cerulean waters of this backyard pool will invite you to take a dip. Catch up with your group beneath the pergola, then swim laps in this sophisticated marvel as the sun goes down. Enormous windows let the light in here and make it feel like you’re by the pool, even when you’re hard at work inside. When you need to get out, experience the big city feeling by taking a walk through downtown Austin.
Honorable Mentions: Enjoy views of your own private lake and private pool at this luxurious vacation rental in Norman, OK, visit this meticulously decorated home with its own mini golf putting green and awe-inspiring pool in the Coachella Valley, or swim by day, stream movies in the home theater by night from this Pigeon Forge vacation rental.
Exercise helps mental health and increases productivity — and companies are encouraging their teams to work out more than ever. These vacation rentals are perfect for a getaway that blends work-life balance, with a home gym to break up your day.
Redwoods and red wine are waiting for you in Sonoma County. This charming cabin is the place to go glamping in the woods while still keeping a wi-fi signal. Nature is your gym here in a home that’s surrounded by trails and a few minutes from the beach, but if you want a more traditional place to exercise, hit the cabin’s small home gym. After a long work week, hop in the car, soak in ocean views, and savor wines from famous vineyards.
Turn your workday into a fairytale at this welcoming Acworth mansion, complete with a pool and its own movie theater. Take your lunch break in the home gym, catch up on emails from the gazebo, and toast to the day by the outdoor fire pit once five o’clock hits. There are so many ways to clear your head — whether it’s playing billiards, or cooking a meal for your group and enjoying it in the sprawling dining areas.
Honorable Mentions: This budget-friendly vacation home in Glendale, AZ offers all the perks of a private resort, including a pool and a putting green. Or, go big and work remotely from this enormous vacation home sitting over the lake in Kaiser, MO. You can also sit out by your own private creek and access some of Colorado’s most pristine trails from this home amid the treetops in Evergreen, CO.
Evolve only rents homes with private entrances, which means that every place on our site is perfect for finding focus. But if you’re looking for a getaway where you can separate your 9-5 from your night of relaxation, these picks come with a home office and the bliss of complete quiet.
Enormous Retreat In Erie, CO
This vacation rental is made for remote work retreats with multiple offices, plenty of separate seating areas, and a boardroom-style table. Travel with friends and tackle the workday separately from your own private spaces, then reconnect over a game night in the living room. Wind down while strolling downtown Boulder (just a short drive away) with the Flatiron mountains as your backdrop.
Enjoy a life of luxury from this scenic cabin equipped with its own lofted office for working remotely. Catch up about the day around the outdoor fire pit or sip wine on the sprawling wood patio immersed in the forest. If you feel like getting outside, explore the easy Show Low Bluff Trail on foot or spend a leisurely day fishing at Fool Hollow Lake.
Honorable Mention: Work remotely from this vacation rental in Fairplay, CO, and enjoy a cozy, log cabin exterior with a clean, modern interior.
Good books are meant to be enjoyed next to a crackling fireplace. After a long day at the (virtual) office, sink into the couch at one of these places and find your cozy. All you need to bring is hot cider and groceries — each of our homes comes fully equipped with all the amenities you need to stay in for the night.
Hit the road and head to Idyllwild, which sits in California’s San Jacinto mountains. Pets are welcome at this airy dome house that’s a theater to thousands of night stars. Once you’ve closed up your laptop for the day, hit the trails at Mount San Jacinto State Park, then bring home a mountain pie to share from Idyllwild Pizza.
Rise to the sound of trees rustling out this bright property filled with natural light. Kick your feet up in the loft to get some focus, then spend happy hour in the hot tub before cooking up a feast in the gorgeous, modern kitchen. When you’re ready for fresh air, take an evening bike ride along Lake Tahoe, or just sit out and enjoy the lake.
Breckenridge is an outdoor paradise — and this enormous cabin that sleeps 14 is just the place to enjoy it. Take your calls from the quiet porch, indulge in a midday break to shoot some hoops in the in-home basketball court, and wind down by the fire after an evening of exploring the area’s sites. Window shop along Main Street and grab takeout, or find a hike like Hoosier Pass you can do as the sun goes down over the mountain.
Honorable Mentions: Sip a nightcap on a porch overlooking the creek at this vacation home in Frisco, CO, or soak your bones in the hot tub surrounded by trees in this Alto, New Mexico cabin.
Get some new perspective on what you’re working on from one of these places with a view. Find yourself thinking in new ways as you walk along the beach or sit out on the lake, free to let your mind wander. Just be sure to bring a notepad with you as you roam these houses for the moment a great idea strikes.
If you’ve ever had the dream of looking out to the shoreline from a hot tub, this is just the place for you. This hilltop home in the Pacific Northwest is a destination for remote work, with several cozy seating areas, an unbelievable porch view looking over the coast, and a hot tub where you can dip and drink it all in. After work, take a scenic, slow drive along the Tillamook Bay and end the evening with scoops at the iconic Tillamook Creamery.
A lake with a private dock is yours at this calming escape in Albion, MI. This home is filled with windows so you never miss the view, even when you’re inside. There are so many places to work at this home on the golf course — whenever you need some fresh thinking, just pick a new room. The spacious kitchen opens right up into the living room, so you can share stories as you prepare the dinner to share. Days off can be spent on the course, dipping in the lake, or curling up next to a roaring fire while keeping the view.
Beachfront Home In Topsail Beach, NC
Creativity is often sparked by a long walk, and here, you can take that walk out on the beach. Sit out on one of the two decks facing the waves, then step out onto the sand when you need a break. Sunsets here look like a postcard, and you can enjoy them from a bright, cheerful house that is decorated to feel like vacation in every room. Spend the weekend grilling up porch on the outdoor barbecue and catching up your beach read in the pristine sand.
Honorable Mentions: Get out into the mountains at this Jefferson, CO cabin with a verdant view of the mountains and its own game room and treehouse. Or, book this cheerful beachfront home in New Smyrna Beach, FL with ocean access and take your morning coffee in the sand.
Enjoy the freedom to work remotely from a vacation rental anywhere, with all the comforts of home. Find your perfect place to get some fresh air and rest easy knowing that it’ll be professionally cleaned and ready for your arrival.
“Aren’t you just like Airbnb and Vrbo?”
We get that question a lot from people who haven’t worked with us yet. It’s easy to see why. We’re all in the same industry, short-term property rentals. You can find and book great properties on our website or on theirs. And the fact that every Evolve property appears on Airbnb, Vrbo, and other online marketplaces just adds a little more to the confusion.
So let’s clear things up and outline exactly how Evolve is NOT Airbnb, Vrbo, HomeAway, TripAdvisor, or any other online marketplace.
Airbnb, Vrbo, and similar websites are online “marketplaces” where guests find properties and homeowners find guests. Essentially, they act as a distribution channel for owners or property managers, attracting potential guests to their website but leaving the management of the properties and listings to the owners (or whoever is representing the property) themselves.
Evolve helps you start, manage, and grow a vacation rental business. That means we actively work on behalf of our owners, ensuring maximum bookings and eliminating the stress of the traditional vacation rental process.
Here’s where it gets interesting. Evolve is a BIG customer of the online marketplaces. We have tens of thousands of properties listed on their sites, and we constantly implement cutting-edge strategies to make sure our owners’ homes are positioned for maximum traffic and bookings.
Behind the scenes, we have teams of specialists working on the hardest parts of managing a vacation rental: marketing, booking, and customer service. Our teams do everything from creating search-topping property listings to revenue optimization to answering guest questions and asking for online reviews. We even hire professional photographers at no cost to owners to show each property in the best possible light.
As a result of our approach, Evolve properties outperform most others on the online marketplaces. So we don’t compete with Airbnb, Vrbo and the rest. We work with them–and everybody wins.
Unlike most marketplaces, we don’t offer home sharing, extended stays, campsites, trailers, or other mobile structures. Each Evolve property has its own entrance and kitchen (typically a house or condominium). A lot of Evolve guests appreciate having the comforts of home when they travel, and our properties reflect that.
We take even more guesswork out of vacation rental by making sure our properties meet our four core standards. We believe guests simply won’t have the experience they’re looking for unless the property they’ve booked is:
By focusing on properties ideally suited for vacationing and making sure each one lives up to our standards, we’re building a brand that guests can trust to have the time of their lives.
Since Airbnb, Vrbo, and the like don’t handle property management, homeowners have traditionally been forced to either hire a local company to do it or fend for themselves. Evolve is different.
We give homeowners performance-focused marketing and booking support, plus the flexibility to choose their own partner(s) to clean the property and greet guests. Evolve handles all guest inquiries, bookings, and pre-stay communications. We can also connect owners with hundreds of vetted partners nationwide that can handle cleaning and guests.
With Evolve’s help, every guest enjoys a booking experience that feels as professional as the world’s top hospitality brands. We handle all inquiries directly, resolve guest and owners questions, and communicate directly with cleaners to ensure the property is ready for every guest. Our unique approach makes vacation rental actually feel like vacation for owners and guests.
Once you work with Evolve, you quickly discover the difference between our service and all of the others. Soon you’ll book — and earn — more for an industry-low fee that’s backed by an unmatched Risk-Free Guarantee.
Owners should be able to relax, trusting that their property is living up to its potential. And guests should be able to relax with an experience that feels like a big hospitality brand. That’s the Evolve difference.
Learn more about how Evolve helps owners — from newcomers to industry veterans — maximize their listing exposure and passive income
Bend, Oregon, is one of the Pacific Northwest’s most sought-after travel destinations — and with more than 3 million annual visitors, it continues to offer strong short-term rental opportunities for buyers.
Its alpine views, sunny skies, and year-round outdoor recreation attract travelers of all ages, creating consistent demand that can translate into steady rental income.
If you’re considering a Bend vacation rental investment, our free Bend Vacation Rental Market Analysis breaks down the numbers you need to evaluate earning potential. Inside, you’ll find:
👉 Download the full Bend Vacation Rental Investment Analysis.
Bend receives more than 160 days of sunshine each year, making it a rare four-season playground in the Pacific Northwest. That climate supports a long list of outdoor activities and drives traveler demand almost year-round.
Bend’s vibrant city scene also boosts year-round bookings. Travelers are drawn to spots like The Old Mill District, a trendy riverside neighborhood featuring restaurants, breweries, riverside trails, and local art galleries.
Bend’s median home value is around $728,000 — high, but still more affordable than neighboring West Coast metros like Seattle (~$824,000). Combined with steady travel demand, many buyers find that the right Bend investment property can offset ownership costs and generate meaningful revenue throughout the year.
To understand your potential ROI, consider three key factors: property size, location, and amenities. Here’s what the Bend data shows.
Smaller homes (1–3 bedrooms) see the highest number of nights booked per year, according to our data. One-bedroom properties lead in occupancy, and these sizes also make up the majority of Bend’s available inventory — offering more options at approachable price points.
Larger homes (4–5 bedrooms) generate the highest annual revenue. Though inventory is limited, they earn more per booking and tend to attract groups willing to pay higher daily rates. Last year’s top Evolve earner in Bend was a four-bedroom home.
Bottom line: Bend offers strong performance across all property sizes, giving buyers flexibility to choose a home that matches their budget and revenue goals.
Real estate experts consistently rank proximity to Bend’s major attractions as a leading revenue driver. Fortunately, many homes sit just outside downtown, keeping guests close to:
Buyers who want a more nature-forward stay can also explore properties near Mt. Bachelor or Smith Rock State Park, where guests look for quiet, scenic retreats away from the bustle of city life.
No matter the neighborhood, Bend visitors want easy access to the outdoors. Consider upgrades that emphasize nature, relaxation, and convenience:
Amenities like these can improve guest satisfaction, increase five-star reviews, and help your listing stand out in a competitive market.
Bend’s mix of four-season adventure, strong traveler demand, and vibrant city culture makes it one of Oregon’s most resilient vacation rental markets. Whether you’re exploring your first purchase or considering converting an existing home, our Bend Vacation Rental Market Analysis equips you with the data needed to make confident decisions.
Inside the full report, you’ll find:
Use this data to evaluate opportunities, project earning potential, and feel as relaxed about your next investment move as you would drifting down the Deschutes River.
👉 Download the full Bend Vacation Rental Investment Analysis.
The past year proved something important about the vacation rental market: demand is still strong, but how that demand shows up is changing.
For owners, this meant more unpredictability. And for us, it meant doubling down on smarter strategies, faster innovation, and tools that give our owners more control.
In the 2025 Winter Release, Evolve CEO Brian Egan shared the key updates from the past year and how they support stronger, more resilient performance for 2026.
Demand held up well compared to last year, and travelers booked peak dates with confidence. But economic uncertainty had an impact on occupancy and booking patterns in slower seasons. That hesitancy influenced both how far in advance travelers committed and how often they waited until the last minute to book.
We adjusted pricing strategies and launched new features that put the power in our owners’ hands to get last-minute bookings and longer stays when they mattered most, including:
We see these trends continuing, but we’re confident demand will stay healthy overall, with big opportunities around peak seasons and major events like the World Cup.
At the same time, we’re prepared to handle whatever comes our way. Our approach moving into the new year is straightforward:
Combine industry insights, revenue management strategies, and platform upgrades to deliver a feedback-driven owner experience that gives more clarity, control, and confidence — no matter what the market does.
Here’s a look at the latest updates to the owner experience, built on the commitments in our Owner Promise to provide a more convenient and comprehensive experience that makes vacation rental easy:
Why it matters: Managing a rental is easier when your schedule lives where you already plan your daily life.
What’s new: Owners can now sync their Evolve calendar directly with Google, Apple, or Outlook — letting them view upcoming stays and availability in their preferred calendar without switching apps.
Why it matters: In a quick-moving industry, pricing decisions lose value when changes take too long to go into effect.
What’s new: Updates to default or custom minimum rates now publish within 3 hours instead of 24. Owners get faster feedback and more responsive control during changing market conditions.
Why it matters: Some HOAs or local regulations limit how long guests can stay, and violations can lead to compliance issues or unnecessary cancellations.
What’s new: Evolve owners can now set a default maximum stay length, giving peace of mind and reducing the risk of booking conflicts.
Why it matters: Filing season is stressful enough without having to search for documents in multiple places. A hub for all your important info makes taxes less taxing.
What’s new: The new Tax Center consolidates 1099-K forms, property-specific tax rates, and other key documents so Evolve owners have easy, secure access at any time.
Why it matters: A better guest experience depends on smooth operations on the ground and behind the scenes.
What’s new: Our improved Partner App now includes updated tools for cleaners and guest contacts, giving them more modern and reliable functionality to better support the rentals they work with.
Why it matters: Navigating taxes and permitting on your own can feel like a full-time job, and finding a reliable partner isn’t much easier. But the right one can help you reduce your tax burden and increase your cash flow.
What’s new: Owners on our Plus management plan now receive access to trusted experts in short-term rental taxes, compliance, and cost segregation, including free consultations and exclusive rates.
Our upcoming improvements are all about making our platform more flexible, easier to navigate, and adaptable to our owners’ needs.
Why it matters: Listing accuracy is crucial for setting the right guest expectations. Being able to quickly edit details yourself makes it easier to get five-star reviews and build a strong reputation for your vacation rental.
What’s coming: Owners will soon be able to update even more of their property’s amenities directly in the Owner App — no request needed.
Why it matters: Many rentals are co-managed by partners, family, and friends. Having limited ways to share access or manage multiple accounts complicates what should be the easiest part of the process.
What’s coming: Owners will be able to manually add or remove users to their account in their Owner App. Those handling multiple accounts will only need one email address to log into all of them.
Why it matters: The ability to create targeted discounts lets you get more granular with your pricing strategy to attract new travelers, bring back repeat guests, and boost earnings.
What’s coming: Based on feedback from a recent Beta test, we’re finalizing a tool that lets owners create custom promotions at the property level.
Why it matters: Owners and operators of multiple rentals need specialized tools built to boost performance and simplify the day-to-day across a portfolio of properties.
What’s coming: Our new Pro management plan will improve the experience for owners, managers, and co-hosts who handle multiple properties, including features like:
2025 brought meaningful improvements across the owner experience, from revamped support structures to new tools for boosting bookings. None of it would be possible without owner feedback guiding where we focus and pushing us to move faster.
Our commitment remains the same:
Deliver the best owner experience in the industry and continue earning our owners’ trust every day.
Whether you’re a first-timer just getting started or a seasoned owner looking to expand your portfolio, our team of experts is here to help make vacation rental easy. Fill out the form below to determine if you qualify for our services and join us as we move ahead.
Here’s to a strong finish to the year, and an even better 2026.
Even small upgrades to your vacation rental can make a big impact on bookings, guest satisfaction, and long-term revenue. Many owners hesitate to invest in improvements because they’re not sure the updates will pay off. But our data consistently shows that properties with simple, strategic upgrades see:
That means the right improvements don’t just help you earn more today — they help your property command higher rates in the future.
Below are the top vacation rental upgrades with the strongest return on investment.
In This Article:
Upgrade the Kitchen for Maximum Guest Appeal
Enhance Bedrooms for Better Sleep (and Better Reviews)
Refresh Bathrooms to Impress Guests
Improve Curb Appeal and Outdoor Living Spaces
A well-equipped kitchen is one of the main reasons travelers choose a vacation rental over a hotel. Guests want space to cook, dine, and entertain, so your kitchen setup can directly influence booking decisions and reviews.
High-ROI kitchen upgrades include:
You don’t need a full renovation. Even a week or two of small improvements can result in rave guest reviews and dramatically stronger booking performance. When travelers highlight your kitchen in their reviews, future searchers are more likely to book — and pay higher rates.
The bedroom experience can make or break a review. If guests struggle to sleep because of an outdated mattress, scratchy sheets, or poor lighting, it will show up in your ratings.
Must-have bedroom upgrades include:
Comfort-focused touches tell guests you’ve thoughtfully prepared the space for them, leading to excellent reviews and increased pricing power.
Bathrooms often get overlooked because they function “well enough,” but small updates can significantly improve guest sentiment and tip reviews in your favor.
High-impact bathroom upgrades include:
These low-cost enhancements elevate the guest experience without requiring a full remodel.
First impressions start at the curb — and travelers expect your property to look exactly like the listing photos. If the exterior feels unkempt, guests begin their stay with disappointment.
These simple improvements help guests enjoy a smooth arrival and build confidence right away.
A great backyard can become the highlight of a stay — and a significant driver of higher nightly rates.
High-value backyard additions include:
Whether big or small, outdoor improvements can elevate your listing photos and inspire more travelers to book. Check out our backyard-focused article for more detailed tips and inspiration.
You don’t have to figure it all out yourself. Evolve’s design and staging experts specialize in short-term rentals, removing the guesswork and helping you earn five-star reviews.
Owners on our Plus membership plan get access to an exclusive marketplace where they can:
If you’re ready to take your vacation rental to the next level, complete the quick form below to see if you qualify and connect with our team.
If you’re in the middle of peak season but still have unbooked nights on your vacation rental calendar, you’re not alone. Even when traveler interest is high, many owners see strong early-season demand only to hit a mid-season slowdown.
The good news: Last-minute travelers are actively searching, and a few small adjustments can help you capture those remaining reservations quickly.
Below are fast, high-impact strategies to help you fill calendar gaps, improve booking visibility, and convert last-minute guests more effectively.
In This Article:
Adjust Your Pricing to Match Last-Minute Demand
Offer a Clearly Displayed Special Discount
Lower Your Minimum Night Stay Requirements
Re-Engage Previous Guests With a Personal Invitation
Respond Immediately to New Inquiries
Many early-season guests are willing to pay premium rates to secure their ideal stay. But as travel dates get closer, price becomes a larger motivator. If your listing isn’t booking those final nights, your rates may simply be higher than comparable options.
Evolve Advantage: SmartRates, our exclusive dynamic pricing algorithm, analyzes billions of data points to continuously adjust pricing based on demand, seasonality, competition, and booking patterns — helping Evolve owners optimize revenue automatically.
Lowering your rate behind the scenes works, but displaying a discount works even better.
Many listing sites highlight discounted pricing visually, showing guests the original rate alongside the reduced one. This makes the deal feel more compelling and drives faster action, especially for last-minute planners.
Evolve Advantage With Last-Minute Minimum Rates, our owners can book hard-to-fill nights by automatically reducing their default minimum pricing by up to 20% for bookings made within 30 days of check-in.
Longer minimums can unintentionally filter you out of last-minute searches.
Travelers today often plan shorter trips, like long weekends, three-night getaways, or spontaneous quick stays. If you require a five-night minimum, your property may never appear in the search results for the majority of last-minute guests.
Evolve Advantage: Custom Minimum Stays let our owners automatically override default minimums when they need to fill calendar gaps without sacrificing their long-term strategy.
If you still have time before the vacant dates arrive, reach out to past guests. They already know your property, and many would be happy to return, especially with a small incentive.
This can:
Speed is everything for last-minute travelers. Guests booking close to arrival dates often want to finalize their plans within minutes, not hours.
Our data shows that travelers are twice as likely to book if you respond within 15 minutes instead of waiting up to 24 hours.
Evolve Advantage: Our owners rest easy knowing that the Evolve customer support team is available 24/7 for things like guest inquiries, pre- and post-stay communications, and review responses.
Keeping your listing competitive during high-season — optimizing your listing, adjusting pricing, and managing quick communication — can feel like a full-time job.
If you want to make sure you capture every booking opportunity without doing all the work, a professional team can help.
If you’re looking to maximize your income while minimizing the work, Evolve can help keep your property fully optimized year-round. Fill out the short form below to see if you qualify and start making vacation rental easy.
Beach getaways remain one of the most requested travel experiences — and demand continues to rise. In our most recent State of Travel survey, travelers named a waterfront getaway as their top planned vacation, and 59% said a beach house is their most preferred property type.
For buyers, this trend raises an important question: Is purchasing a beach house a smart investment?
Beach rentals can be strong income-producing assets, but every market and property is different. Below are the key questions to ask before buying a beach house to help you evaluate investment value, risks, and long-term earning potential.
In This Article:
What Are My Investment Goals for a Beach House?
How Much Does It Cost to Buy a Beach House?
When Is the Best Time to Buy a Beach House?
Does This Destination Have Year-Round Demand?
Where Should I Buy a Beach House?
How Close Should My Beach House Be to the Water?
What Amenities Make a Beach House More Appealing to Renters?
Bottom Line: Is a Beach House a Good Investment?
Start by defining what you want your property to do for you. Common goals include:
Once you’ve set your objectives, you can narrow your search to properties that align with those expectations.
A useful tool here is a market’s cap rate, which estimates return on investment and helps determine the best places to buy a beach house based on your financial targets. If personal enjoyment is part of your plan, begin with your favorite destinations, then evaluate profitability next.
The cost of a beach property varies widely based on location, property type, and ongoing expenses. To estimate your upfront spend and payback timeline, consider:
Popular beach markets often come with higher listing prices, though some remain surprisingly affordable. In many U.S. beach destinations, homes under $400,000 still appear — while high-demand areas like Seabrook Island, SC can exceed $670,000.
A common buyer question is: Do beach condos pay for themselves?
Condos often have lower entry prices than standalone beach houses, but additional expenses such as HOA fees, higher insurance rates, local taxes, and building maintenance must be factored in.
A local real estate agent with vacation rental expertise can help you compare total ownership costs. For investment forecasting, a vacation rental income calculator can provide clearer profit estimates once expenses are added.
Evolve advantage: When you work with our team, we connect you with our network of licensed real estate agents and lenders that specialize in short-term rentals, ensuring your purchase is grounded in accurate local and financial insight.
The best time to buy is often during a destination’s off-season, when:
For many beach markets, fall and winter bring the most inventory — although regions like southern Florida may see a spring or summer surge due to opposite seasonal trends.
An off-season purchase also gives you time to:
Seasonality is one of the biggest drivers of vacation rental performance.
Understanding demand patterns helps you estimate expected occupancy, annual revenue potential, and long-term ROI.
Choosing the right market can make or break your investment. You can focus on:
Well-known vacation rental markets top our list of the best places to buy a beach rental. Examples include Gulf Shores, AL, Hilton Head, SC, and Galveston, TX, which reliably attract repeat visitors and families.
Areas like Hampton, VA, and Ocean Shores, WA, offer lower entry prices and rising traveler interest, often resulting in stronger long-term growth opportunities.
Many travelers now prefer beach homes that are walkable to downtown shops, restaurants, and boardwalk areas, giving them more to do beyond the shoreline.
Proximity matters — both for guest experience and revenue potential.
If you’re marketing the property as a “beach house,” guests expect easy access to sand and water.
Amenities heavily influence booking rates and nightly pricing. The most-requested beach rental features include:
Balconies, decks, and patios that highlight the scenery are major value boosters.
Homes closest to the shoreline command higher rates and higher occupancy.
Travelers appreciate:
Many travelers want both options: beach days and pool days. Condos with shared pools or homes with private pools and hot tubs often see increased year-round demand.
Evolve advantage: When you work with Evolve, our marketing team creates optimized listings with professional photography to highlight these amenities and improve booking performance.
For many buyers, the answer is yes — especially when demand for coastal travel continues to climb and remote work boosts off-season stays. The key is choosing the right location, understanding costs, and setting realistic revenue expectations.
If you’re considering your first (or next) beach investment, our team can help you make informed decisions rooted in real market data and long-term strategy.
Searching for beach houses for sale can be overwhelming without experienced support. Evolve’s real estate experts help you:
With the right guidance, owning a beach house can be both rewarding and profitable. Take the first step by connecting with our team of experts today.
If you’re new to the short-term rental world, you’re not alone. Hundreds of people enter the vacation rental industry every day looking to build equity, create passive income, and turn properties into high-performing investments.
But understanding how to make money with a vacation rental can feel overwhelming at first. We asked seasoned Evolve owners what they wish they had known when they were just starting out, then paired their insights with our expertise in managing thousands of vacation rentals nationwide.
Below is a simple, high-impact guide to help first-time owners set up their rental for long-term profitability.
In This Article:
Do Your Vacation Rental Homework
Don’t Cut Corners at the Start
New owners often underestimate how much foundational knowledge goes into running a successful short-term rental. You’ll need to understand:
“When I first started in the business in 2007, there wasn’t as much information about vacation rental readily available,” says Karen Hopkins, owner of eight short-term rentals in Branson, Missouri. “I would read everything I could get my hands on and study other rentals in my area.”
The takeaway: the more you study the market, the better your chances of avoiding first-timer mistakes — and the quicker you learn how to make money with a vacation rental.
Many first-time hosts try to save money upfront by:
But under-investing early usually leads to more work and fewer bookings.
Quality upgrades, trusted cleaning and property maintenance partners, and potentially a professional vacation rental management company can dramatically decrease your workload and maximize your investment. They’re often the difference between a rental that struggles and one that becomes a strong passive-income source.
Your design choices directly affect booking conversions. It’s best to create a comfortable and convenient space for any guest to enjoy.
To appeal to the widest audience:
“At first, we used the outdoor furniture we had instead of shelling out for new chairs, and our guests noticed,” says John Lisanick, the owner of this cozy cottage in White Stone, Virginia. “We corrected that right away and added ample deck chairs and cozy cushions.”
A well-designed, well-stocked home helps create the “understated luxury” travelers look for and can increase your positive reviews and repeat bookings.
The fastest way to maximize profits is to stop trying to do everything yourself. The most successful short-term rentals rely on professional support for:
“After I made the switch to partnering with Evolve, my revenue increased by far more than my fees,” Hopkins says. “Plus, it left me with more time to take care of all the other parts of the business so we could continue to grow.”
A trusted partner can give you an instant sense of professionalism, help you avoid common missteps, and unlock higher ROI with far less work.
Pricing mistakes are one of the biggest reasons DIY owners lose money.
To set the right nightly rate, new owners should consider:
A dynamic pricing strategy ensures your home stays competitive and profitable throughout the year. At Evolve, our exclusive algorithm analyzes billions of ever-changing data points to continuously optimize rates, helping owners earn more than traditional pricing methods allow.
Learning how to make money with a vacation rental is easier when you have the right resources and strategies.
Our free downloadable guide, The 6 Biggest Secrets to Making Thousands More with Your Vacation Rental, walks you through:
And if you ever want expert support, Evolve is here with the guidance and tools to help you earn more and stress less.
Choosing the right vacation rental management company can make a huge difference in the success of your property. Whether it’s your first time renting or you’re a seasoned owner, partnering with the right team can save you time, reduce stress, and maximize your income. Here’s a streamlined guide of questions you can ask managers to help you make an informed decision.
Want to know how Evolve would answer these questions? See if you qualify for our services today and we’ll put you in touch with one of our vacation rental experts ASAP.
In This Article:
What’s the Vacation Rental Market Like in My Area?
What Are Your Fees and Contract Terms?
What Services Are Included in Your Fees?
How Will You Market My Property?
When and What’s Your Booking and Customer Support Availability?
How Will You Maintain My Property’s Condition and Handle Damages?
Understanding the local market is crucial for maximizing your property’s performance. Ask the management company about:
Why It Matters: A company that knows the local market can tailor pricing, marketing, and booking strategies to optimize your revenue.
Be prepared: Get ready for the conversation with our vacation rental market analyses, which cover everything from income potential by property size to average daily rates by season.
Many companies charge management fees that typically range from 25-50% of your rental income. Before committing to anything, be sure to:
💡Look for a company with flexible terms and clear payment schedules. Evolve doesn’t require long-term contracts, there’s no cost to join, and our approach is backed by a Risk-Free Guarantee.
Different companies include different services. Clarify what’s covered in the management fee, such as:
Specifically ask what services aren’t included in their fees so you won’t be surprised by hidden costs. Comprehensive support and expert-level attention to detail shouldn’t depend on extra charges after you sign a management agreement.
A robust marketing strategy with a strong online presence is essential for high occupancy rates. Ask about:
Evolve Advantage: We promote listings across all major platforms, including those that owners can’t access on their own, ensuring maximum visibility.
Make sure the management company offers:
These benefits ensure you never miss a booking opportunity and that guests have a seamless experience.
To keep your vacation rental guest-ready, make sure the company:
Making sure you’re covered for any accidental damages or issues is the best way to protect your investment.
Evolve advantage: We support our owners throughrisk protection programs, so you can rest easy knowing your home is in good hands.
Before signing a contract, ask to:
Client feedback can provide valuable insight into how the company performs over time.
Choosing the best vacation rental management partner can feel overwhelming, but it’s nothing compared to doing it on your own. The right company makes ownership easier, more efficient, and far more profitable.
If you want a proven, low-stress path to better performance, work with Evolve. Our revenue-driving approach includes everything from helping you find your next investment to filling it with guests and boosting your income.
Ready to see if we’re the right fit? Use the form below to connect with one of our vacation rental experts and see how we can help you achieve your goals as an STR owner.
If you’re preparing your mountain vacation rental for ski season, the right amenities can make or break a guest’s experience — and your winter booking rate. To help you understand what travelers actually search for and ask about, we gathered info on the top winter amenities requested by travelers booking ski homes, cabins, and other mountain getaways.
Below are expert answers to questions about the most in-demand mountain rental amenities, based on insights we’ve gathered from everyday conversations with guests.
In This Article:
Do Ski Travelers Expect Snow Removal?
What Kitchen Essentials Should a Mountain Rental Have?
What Mountain Access Information Do Guests Need?
What Mountain Access Information Do Guests Need?
Should You Add Holiday Decorations?
Do Mountain Rentals Need WiFi and Cable?
Yes — snow removal is one of the top amenities winter guests ask about.
Travelers want to enjoy their vacation, not shovel their way to the front door. Offering professional snow removal for driveways and walkways:
💡If you’re in a high-snow region, highlight “snow removal included” clearly in your listing.
Ski season overlaps with major holidays, meaning families often cook large meals at your property. To meet expectations (and show up in “fully stocked kitchen for holiday cooking” searches), be sure to provide:
💡Call out these details in your listing. A well-equipped kitchen is a major booking driver for Thanksgiving, Christmas, and long winter weekends.
Your guests are likely unfamiliar with the area and may not know how to get to popular destinations, what transportation options are available, or how to access ski lifts and rent equipment.
Help them by providing:
Distances to ski resorts and town centers
Transportation options and shuttle info
Equipment rental locations
Ski school details
Driving/traffic tips
Best times to hit the slopes
💡Compile all these details in a pre-stay email and include them in a Welcome Book at your property so your guests feel like insiders.
Absolutely. Parking questions are among the most common traveler inquiries for any property.
Garage parking is especially valuable in snowy climates because it eliminates the need for brushing or scraping and protects travelers who may not be used to winter driving.
Guests want to know:
Is parking available on-site?
Is covered parking included?
💡If you don’t offer covered parking, give guests a list of nearby affordable options.
Surprisingly, yes — guests frequently ask about holiday lights and décor.
Keep it simple and universal:
These features add charm without alienating guests with specific holiday preferences.
Reliable WiFi is one of the top guest concerns in mountain markets. Since many mountain towns have spotty cell service, guests want reassurance before booking.
You should provide:
Going the extra mile to make sure guests know they won’t be forced off-grid during their vacation instantly reduces anxiety and boosts booking confidence.
Yes. “Cabin with fireplace” is a highly searched term in major mountain and ski markets, and some travelers refuse to book a cabin without the amenity.
If you have a fireplace, make it a star feature in your listing and showcase it in your lead photo.
💡If not, an outdoor fire pit is an easy upgrade that adds extra coziness and attracts guests looking for après-ski ambiance.
Small comforts go a long way. Popular bonus amenities include:
💡Simple touches can turn a stay into a memorable experience — and often into a repeat booking.
The owners who get the best reviews are the ones who anticipate what out-of-towners need most. As you get ready for peak season, think about the services, supplies, and small comfort upgrades that help guests feel at home in an unfamiliar environment.
You can even welcome travelers with a small gift. For ideas, explore our guest gifting guide to elevate their stay from the moment they arrive.
At Evolve, we help owners increase revenue while delivering the five-star experience guests expect. Fill out the form below to see if your property qualifies and learn how our team of experts can support your vacation rental goals during the winter season.
If you’ve got your vacation rental fully stocked, furnished, deep-cleaned, and guest-ready, the next big step is getting it in front of travelers.
That leads first-time STR owners to the next biggest question:
“What are the best sites to list my vacation rental on?”
To help you decide what’s best for your property, this guide breaks down the top vacation rental listing sites, how each one works for owners, who each site attracts, and what it costs.
Fast answer: If you don’t want to choose, Evolve lists your home on all major booking sites for you — Airbnb, Vrbo, Booking.com, Google Vacation Rentals, Expedia, Hopper Homes, Homes & Villas by Marriott Bonvoy™, and more.
In This Article
Airbnb
Vrbo
Booking.com
Google Vacation Rentals
Expedia
Hopper
Homes & Villas by Marriott Bonvoy™
Best for: broad reach, younger and tech-savvy travelers
Audience size: estimated 275M+ global users
Airbnb is one of the most recognizable vacation rental platforms. You can list almost any type of accommodation, including private rooms, entire homes, and unique stays.
It’s a flexible, hands-on platform, but new hosts may feel the learning curve if they want step-by-step business guidance.
Best for: families, longer stays, older travelers, locals
Audience size: 48M+ monthly active users
Vrbo focuses exclusively on entire-home rentals (not shared spaces), making it ideal if you want to cater to families or groups.
Guests tend to book longer stays here, meaning fewer turnovers and potentially lower cleaning and maintenance costs.
Owners choose between:
Both options include a 3% payment processing fee on total payment and taxes.
Booking.com includes hotels, rentals, flights, and more, attracting high-intent travelers who are ready to book. It has the broadest audience of all the best short-term rental sites.
This platform behaves more like a travel marketplace than a community, which some owners appreciate for predictability.
Best for: maximum visibility on Google search results
Audience size: virtually anyone searching for stays on Google
Google’s vacation rental feature displays rental listings directly in search results. Combined with their near-monopoly on internet searches, it can dramatically increase your exposure.
You cannot list directly. Google Vacation Rentals isn’t DIY because it isn’t technically a marketplace. You must work with a property manager partnered with Google (like Evolve).
Since Google relies on search algorithms:
Expedia is one of the most well-known travel agencies globally; travelers often book rentals alongside flights and activities.
Owners can’t list directly. You must work through a property management company (like Evolve).
Working with an Expedia subsidiary (like Vrbo) gets you the opportunity to show up on Expedia’s site, but there are specific criteria to be featured.
With the right management partner, your listing may also appear on Orbitz, Travelocity, Hotwire, Hotels.com, and other Expedia Group sites.
Best for: Millennials & Gen Z, mobile-first travelers, packaged-trip shoppers
Audience size: 120M+ app users
Hopper offers flights and rental cars in addition to stays. It markets aggressively on social platforms like TikTok and Instagram, and 70% of its users are Gen Z and Millennials.
Hopper has two separate fee structures for owners working with a property management company and those doing it themselves:
Best for: premium properties and loyalty-driven travelers
Audience size: 220M+ Marriott Bonvoy™ members
Homes & Villas’ vacation rental collection showcases high-end, hand-selected homes.
HVMB is only accessible through partnered property management companies.
Listing on just one platform limits your visibility. More sites mean more exposure, more bookings, and higher revenue.
But managing multiple listings yourself presents many challenges:
Evolve eliminates the need to choose. As part of our services, we:
All while only charging an industry-low management fee of 10% or 15%, depending on your chosen management plan.
If you want simplified, high-performing vacation rental marketing without managing it all yourself, fill out the short form below to see if your home qualifies.
Recent federal legislation restored a powerful short-term rental (STR) tax loophole, allowing owners to take advantage of 100% bonus depreciation. For owners who qualify, that means the chance to deduct a substantial portion of property-related costs from your ordinary income (i.e. primary income from W-2 wages or business income).
This creates a sizable new opportunity to grow your rental business, but it’s also not the only tax advantage STR owners have at their disposal. Whether you’re considering investing in a short-term rental, turning a second home into one, or looking to maximize the profitability of an existing STR, there are ways to reduce your tax burden and free up more cash to reinvest.
Evolve can be an ideal partner to help you leverage these benefits. Here’s what capitalizing on the STR tax loophole and other tax advantages entails — and how our management model can support your success.
Note: Evolve cannot provide tax advice. The information in this article is meant to help you understand general concepts that may apply to short-term rental ownership. Consult a qualified tax professional for guidance.
💡 Eager to buy? Get market recommendations, custom income projections, and access to financing and furnishing partners when we work together.
In This Article:
What is 100% bonus depreciation?
How do owners qualify for bonus depreciation?
What is material participation?
How can owners benefit from material participation?
Taking bonus depreciation further with cost segregation
Hiring specialists
Strategy in action: How the numbers can play out
Key takeaways
Frequently asked questions
100% bonus depreciation lets STR owners deduct the entire cost of qualifying assets in the year they’re listed for rent from your ordinary income — instead of spreading them out over many years.
Under current legislation, the enhanced benefit will apply to assets placed in service between January 20, 2025 and December 31, 2029. Owners with properties placed in service prior to January 20, 2025 can also benefit from bonus depreciation. Percentages vary by year, but many STR owners are sitting on significant amounts of unrealized tax savings.
Maximum bonus depreciation percentages for qualifying years:
2025: 100%
2024: 60%
2023: 80%
2018-2022: 100%
To use bonus depreciation, your property must meet certain IRS requirements. The most critical are:
Material participation is what lets the IRS treat your short-term rental as an “active business” instead of just a passive investment. That’s important because it can open the door to bigger tax benefits.
To demonstrate material participation, you or your spouse must spend 100+ hours per year on the property, and more time than any other individual. There are other ways to satisfy the material participation requirement, but the “100-hour test” is most common among STR owners.
Preparing your property for guests, time spent coordinating repairs or improvements with contractors once it’s up-and-running, managing turnovers, or checking in with guests during their stays can all count.
Partnering with Evolve makes this simple. You can demonstrate active involvement in operations while we handle your booking management, pricing strategy, and guest support.
Plus, the team we put behind you includes a variety of experts, from revenue managers to customer support reps to trusted service partners. So no individual would ever contribute more than the 100 hours you do in a tax year.
This is the best of both worlds for leveraging material participation as a tax strategy — you get strategic management at scale without overshadowing your role as the owner, which you generally can’t achieve with full-service property managers.
💡 Keep a log of your hours, receipts, and emails to document your material participation.
As we’ve covered, material participation is a key requirement to qualify for bonus depreciation — but it can also unlock other valuable tax benefits unique to STRs.
Here’s why: the IRS usually considers rental properties generators of “passive” income, but demonstrating material participation in an STR creates a special exception that can move your property to an “active” classification.
As a result, you may be able to use STR-related deductions to offset W-2 or business wages, making STRs uniquely powerful in potentially reducing your taxable income more broadly whether or not you’re in your first year of operation.
This can really depend on your circumstance, though. Speak with a tax professional to understand the ins and outs.
While residential real estate generally depreciates on a standard 27.5-year schedule, many owners also use a cost segregation study in order to generate a deductible loss through depreciation on shorter timelines.
Through cost segregation, the physical components of your property as well as certain improvements associated with getting your short-term rental ready to use (like renovations or new appliances) can qualify for bonus depreciation in year one.
Turn to the services of specialists, such as a firm focused on cost segregation studies or a tax planning firm with proficiency in real estate asset protection. Evolve can connect you with trusted guidance in these areas:
CSA Partners focuses exclusively on cost segregation, with over 30,000 studies completed nationwide. Evolve referrals get a complimentary benefit analysis, and owners on our Plus management plan will receive $150 off a cost segregation study.
Learn more about CSA Partners →
The experts at Anderson Advisors look at your situation from the legal, tax, financial, and business planning perspectives to help you navigate the complexities of real estate and make informed decisions. Evolve referrals are eligible for a free asset protection strategy session, and if you’re an Evolve owner on our Plus management plan, you’ll receive up to $500 off select tax advice packages.
Learn more about Anderson Advisors →
Say you make $180,000 annually and purchase a $500,000 condo. You consult professional tax guidance and decide to partner with Evolve — making it easy to get set up as a short-term rental while materially participating in your rental operations.
This qualifies you for 100% bonus depreciation, which you opt to maximize through a cost segregation study. Major property components like appliances, flooring, and landscaping are reclassified into shorter depreciation schedules — which makes more of your upfront costs fully deductible in year one.
As a result, you’re ultimately able to deduct 30% of the property’s total value — $150,000 — reducing your taxable income from $180,000 to just $30,000 for the year. This creates massive upfront savings you can then reinvest in further upgrades and future growth of your vacation rental business.
Bonus depreciation can be a powerful tool short-term rental owners can use to boost cash flow and make a property investment work harder from day one. Pair it with a cost segregation study, and the benefits may be even greater. Layer on the potential to offset active income with your material participation demonstration, and you’ve built a dynamic STR tax strategy.
At Evolve, we can help you strike an ideal balance for leveraging these opportunities: you stay in control of your property operations while we simplify the management side, making it easier to qualify for bonus depreciation while focusing on your growth. Connect with us today if this sounds like the partnership you’re looking for.
And if you’re on the hunt for the right property, we can help there, too. We partner at any stage of your buying journey — whether you’re still defining your business goals or ready to chat with an agent.
To reap the benefits of the STR tax loophole, you can leverage 100% bonus depreciation and maximize its impact with a cost segregation study. Work with a CPA and a firm that specializes in cost segregation studies to make sure you’re taking the appropriate steps to qualify.
100% bonus depreciation lets STR owners deduct the entire cost of qualifying assets from ordinary income (primary income from W-2 wages or business income) in the first year their property is listed for rent.
You or your spouse spend 100+ hours per year — and more time than anyone else — actively involved in your property operations. Time spent coordinating repairs with contractors, managing turnovers, or checking in with guests can all count. This helps qualify you for 100% bonus depreciation, and may also open up additional opportunities for deducting losses.
As an Evolve referral, take advantage of Anderson Advisors’ free asset protection strategy session to talk through your situation and create an asset protection blueprint. And if you’re an Evolve owner on our Plus management plan, you’ll receive up to $500 off select tax advice packages.
A cost segregation study reclassifies parts of your total property cost so those components are deductible on shorter timelines — and depreciate faster than the building itself. It’s conducted by professionals — generally a firm that specializes specifically in these kinds of studies.
Get your complimentary benefit analysis from CSA Partners to see how much hidden cash flow you can unlock, and take $150 off a cost segregation study if you’re a Plus owner with Evolve.