Short term rental investing is a form of real estate investing that involves renting out residential or commercial properties for short-term periods. This type of investment can provide investors with immediate cash flow and can be done with both residential and commercial properties. Depending on the location, investors can rent out their property to travelers or other tenants for as little as one night up to several months at a time.

The primary benefits of short-term rental investing are that it can generate higher returns than traditional long-term rentals due to higher demand in certain seasons or from specific types of guests. Additionally, investors do not have to go through the process of finding and screening long-term tenants, as they would with traditional rental investments.

Short-term rental investments also come with potential risks that investors should consider before getting involved in this type of venture. Since tenants stay for shorter periods and often come from different places, there is a greater risk of damage to the property or nonpayment of rent. Investors must also factor in additional costs such as furnishing the property, paying for cleaning services after each guest leaves, and paying fees associated with being part of a platform such as Airbnb or VRBO.