Renting out a property looks different for everyone. While some landlords commit to long-term leases, others choose to offer short-term arrangements. This latter route, though more unconventional, can be an excellent opportunity for landlords, especially in cities that are home to famous events.
In this guide, we’ll explore the ins and outs of short-term leasing and the opportunities it presents during big-ticket events. From music festivals to sporting matches, we’ll cover the top considerations for landlords looking to capitalize on these high-demand opportunities.
Key Takeaways:
- Major events drive huge rental spikes—Kentucky Derby rates soared 144% to $714, and Coachella Valley saw demand more than double.
- Super Bowl LIX in New Orleans led to a 378% jump in nightly rates and a 31% occupancy increase.
- Landlords cite wear and tear (79%) and permit issues (37%) as top concerns, emphasizing the need for strong protections and compliance.
Why Consider Short-Term Leasing for Events?
So, what are the benefits of short-term rentals for landlords? Are they more profitable than long-term leases? Or is this only determined case-by-case? It’s common to have these questions when deciding the fate of your property investment. To find your answers, here are some key benefits to consider:
High-profit potential
Though some events only last for a weekend, you’d be surprised at how much revenue a short-term event rental can generate. Think renting a Palm Springs apartment during Coachella or a Louisville home for the Kentucky Derby. In these instances, renting out a property can yield a huge profit – one that could surpass multiple months’ rent from a normal tenant.
According to a recent article on short-term rental trends by AirDNA, major events have a clear correlation to rising short-term rental demand and revenue. The blog cites the 2024 solar eclipse as an example, which increased average daily rates by 18.4% in locations along the viewing path. Similarly, college towns also experience short-term surges during graduation weeks, commanding a 55% premium on average daily rates and increasing booking revenue by 186% on average.
More flexibility
Another big advantage of short-term event rentals is flexibility. Rather than committing the property to a tenant for six months or a year, you have the freedom to pick and choose when to rent it out. This gives you the ability to use the property for personal use or offer it to friends and family. Whether you want to rent out your property for a weekend, a week, or a month, the flexibility of short-term rentals allows you to customize your rental schedule according to your needs.
Less vacancy gaps
One of the biggest challenges that landlords face is dealing with vacancy gaps - periods of time where their property is not generating any income. With short-term event rentals, these gaps are significantly reduced as there will always be demand for short stays from tourists, business travelers, and other visitors. This means a more consistent and reliable stream of income for landlords, particularly those renting out properties in vacation destinations or major cities.
Event-Specific Rules and Regulations
Short-term event rentals are often subject to specific rules and regulations that may differ from traditional long-term rentals. These rules vary depending on location, type of property, length of stay, and scope of the event. So, before you start inflating pool floats for Coachella guests or upgrading televisions for a Super Bowl stay, consider the following:
Common restrictions
While restrictions vary across markets, most local governments will enforce short-term rules involving the following:
- Local permits and licensing requirements: Many cities require hosts to obtain a business license or a special short-term rental permit. These documents ensure you are operating legally and often involve an application process and fees. Failing to secure the proper permits can result in significant fines.
- Zoning restrictions: Certain residential areas may have zoning laws that prohibit or limit commercial activities, including short-term rentals. It's crucial to check your local zoning ordinances to confirm that your property is eligible for this type of use. These laws are designed to maintain the residential character of neighborhoods.
- Occupancy limits and safety codes: Local regulations often dictate the maximum number of guests allowed based on the property's size and the number of bedrooms. You must also adhere to fire safety codes, which may require smoke detectors, carbon monoxide alarms, and fire extinguishers. These rules are in place to ensure guest safety.
- HOA or lease restrictions: If your property is part of a homeowners' association (HOA), you may face additional restrictions. Many HOA bylaws and lease agreements prohibit or place strict limits on subletting or short-term rentals. Always review these documents before listing your property to avoid violating your contract.
- Tax compliance: Income generated from short-term rentals is typically subject to taxes. This can include local transient occupancy taxes (TOT), state income taxes, and federal income taxes. You are responsible for collecting, reporting, and remitting these taxes to the appropriate authorities.
Municipal examples
Cities that are home to big events often have specific short-term leasing rules for landlords to follow. For example, cities across Coachella Valley, Greater Palm Springs, and surrounding regions have strict guidelines in place for those renting out properties during Coachella or Stagecoach. These can cover anything from having a specific type of permit to filling out specific tax forms.
Additionally, many local jurisdictions have “Good Neighborhood Guides,” which advise property owners about occupancy limits, noise levels, parking rules, and more. The city of Palm Springs, for example, enforces a $500 fine for violating rules outlined in its Neighborhood Guide. These rules include: no music or sound outside the property, only one vehicle per bedroom, no dogs off-leash outside the property, etc.
Compliance tips
One of the best compliance tips we can offer is to review your state rental laws before renting out your property. Then, make sure to also check your neighborhood’s specific guidelines, which could include parameters on quiet hours, parking regulations, and more. You will then be responsible for communicating these rules to occupants before their stay and making sure they adhere to them.
Keep written records when dealing with short-term event rentals. This includes any communication between you and the occupant, photos of the property before the stay, receipts of payments/bookings, and more. Having these components clearly documented can come in handy if disputes arise between you and your guests.
Pricing Strategy During Special Events
Pricing strategies for short-term rentals differ from those of traditional properties. Rather than setting a fixed price, short-term rentals often fluctuate based on demand and seasonality. For example, you might charge more during a popular weekend event when demand is high. However, before adjusting your rates, consider the following points:
Rent comparable reports
Establishing the right price for your property during special events begins with effective benchmarking. One approach is to analyze comparable properties, otherwise known as rent comps, in your area. Look for listings with similar sizes, amenities, and proximity to the event venue, and examine their pricing history during previous similar events.
Supply vs. demand tactics
During high-profile events, demand for short-term rentals can skyrocket as available accommodations dwindle. Monitor local trends and adjust your pricing to capitalize on this imbalance. When demand is high but supply is limited, you may increase your nightly rates to reflect scarcity. Conversely, if there is a surplus of listings, consider offering promotions or highlighting unique amenities to stand out in a crowded market.
A strategic tactic during high-demand periods is to implement minimum-night thresholds. Require guests to book at least two or three consecutive nights, ensuring longer stays and reducing turnover costs. This approach can maximize profitability while minimizing the operational load, such as frequent cleanings or check-ins.
Day-by-day or block pricing
Flexibility is key when setting prices around special events. Instead of applying the same nightly rate throughout the period, adjust your pricing day-by-day based on event schedules or peak booking days. For multi-day events, consider block pricing where guests pay a flat fee for the entire duration. This strategy can simplify bookings and secure more extended stays upfront.
Upsell additional services
Offering optional services can further boost your revenue during special events. Consider upselling conveniences such as professional cleaning services, airport transfers, or reserved parking spaces. These extras not only enhance the guest experience but also provide an opportunity to increase your overall income. Make sure to clearly market these options in your listing for maximum visibility.
City-by-City Case Study Snapshots
We’ve mentioned a few examples where short-term event rentals thrive, ranging from concert festivals to sporting events. Below, we’re going to further break down some of the most notable events for short-term rentals, showcasing their effect on the area’s occupancy and profitability:
Coachella and Stagecoach
Coachella and Stagecoach are the events of the season for dedicated music lovers. Held on the sandy desert grounds of Indio, California, these back-to-back festivals are known to attract thousands of attendees and skyrocket short-term rental demand each April.
Festival goers’ stays aren’t limited to Indio, as many stay in neighboring submarkets like Palm Springs, Thermal, and Coachella. During the first weekend of Coachella in 2023, each of these submarkets saw staggering spikes in short-term rental demand, some of which were over a 100% increase, according to data from AirDNA. However, despite this impressive growth, attention in more recent years has been directed toward Stagecoach, which is now neck-and-neck in terms of notoriety and demand.
In the same report, AirDNA reported an impressive 40% YOY increase in demand pacing for Stagecoach. In April 2024, demand for Stagecoach was only 9% lower than that for the first weekend of Coachella and 21% higher than the second weekend. This is great news for property owners across Coachella Valley, Greater Palm Springs, and surrounding regions, as it shows not one but two opportunities to earn short-term rental income.
Kentucky Derby
The Kentucky Derby is another annual event that sparks conversation about short-term rentals. Referred to as “The Most Exciting Two Minutes in Sports,” the Derby takes place on the first Saturday in May and draws in crowds from all over the world.
Similar to Coachella and Stagecoach, the Derby sparks a massive increase in short-term rental demand. According to 2024 data from AirDNA, the average daily rate for Louisville rentals increased by about 144%, to $714. This, along with the area’s increased occupancy rate of 78%, showcases the profitable opportunities that come from short-term event rentals.
Super Bowl
The Super Bowl is an all-American sporting event that attracts a massive audience each year. While its venue changes each year, the Super Bowl always generates a huge turnout and, as a result, a huge spike in the local short-term rental market.
According to a 2035 report by RESU by PriceLabs, the Super Bowl LIX weekend in New Orleans yielded a 31% increase in occupancy compared to the previous week and a 6% increase year-over-year. As far as short-term rental prices, the city of New Orleans’ average daily rates increased by 378% week-over-week and 87% year-over-year. These impressive spikes showcase how strongly a popular event can shift short-term rental markets.
World Cup
The 2026 World Cup is another event to keep on your short-term leasing radar. With matches set across several North American cities, this big-ticket event is projected to attract millions of visitors. That said, if you have a short-term rental property in one of the following cities, you may want to capitalize on World Cup demand:
- Atlanta
- Boston
- Dallas
- Houston
- Kansas City
- Los Angeles
- Miami
- New York New Jersey
- Philadelphia
- Seattle
- San Francisco Bay Area
As with any rental, always verify local and state regulations before listing. According to a 2025 article by Rent Responsibly, several host cities are revisiting their short-term rental rules and evaluating housing supply ahead of the World Cup. Kansas City, for example, anticipates over 600,000 visitors for its six matches. However, because of its limited short-term rental supply, Kansas City municipalities are pushing for neighboring areas, like Parkville, Missouri, to temporarily ease restrictions to accommodate the influx of World Cup guests.
Potential Challenges of Short-Term Event Rentals
While short-term leasing has plenty of benefits, it can also come with some drawbacks. We polled over 50 landlords and property managers about the challenges they’ve faced when renting out their property for short-term use. Here are some of the obstacles they mentioned:
Property wear and tear
A majority of our survey’s respondents (79%) said property wear and tear was their biggest challenge when renting out properties for events. This is to be expected with more frequent turnovers and shorter stays. However, it can be mitigated with stringent and clearly communicated property expectations. Upon guests’ arrival, make sure they’re aware of any rules or regulations, including policies on damage and cleanliness. Doing so will lessen the risk of major property damage and costly repairs.
Another effective way to address property wear and tear is by charging a security deposit. Security deposits serve as a financial safeguard, ensuring that any damage caused by guests can be repaired without direct financial strain on the property owner. Be transparent about the deposit amount, what it covers, and how it will be refunded to encourage guest accountability.
Getting appropriate insurance coverage is another way to mitigate the risks of wear and tear. Options like short-term rental insurance or event-specific riders provide tailored coverage, protecting against potential damage or liabilities that may arise during short stays or event rentals. By acquiring the right coverage, communicating expectations, and utilizing financial safeguards, you can minimize potential losses and ensure a positive experience for both parties.
Scheduling conflicts
Scheduling conflicts are another common challenge faced by property owners who rent out their properties for events. With surges of demand in a short amount of time, there is a possibility of double-booking or overlap in schedules.
To avoid this issue, it's important to have a clear and organized booking system. Use a calendar to keep track of stays and bookings and ensure that they do not overlap. Consider implementing a policy where guests must confirm their booking before it is officially reserved to prevent double-bookings.
Permit issues
Our survey found that 37% of respondents have faced challenges with permits when hosting events at their vacation rental properties. These issues can range from not having the proper permits to being fined for violating local regulations.
To avoid permit issues, it's important to research and understand the rules and regulations in your area regarding short-term rentals and events. As mentioned earlier, some areas may require a special event permit or limit the number of guests allowed at a short-term rental property. Make sure to obtain all necessary permits before hosting any events on your property and inform your guests about any restrictions they need to follow.
Practical Short-Term Rental Checklist
An easy way to ensure your property’s success is to create a short-term rental checklist. Categorize tasks by pre-stay, during-stay, and post-stay to make sure you’ve covered all your bases. Here’s an example of what to include:
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Stage |
Tasks |
Details |
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Pre-Event |
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During Event |
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Post-Event |
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Leasing Long-Term? Here’s How Apartments.com Can Help
Choosing between a short-term event rental and a long-term rental property can be challenging. Short-term rentals offer flexibility and higher profit potential, while long-term rentals provide stability and reduce wear and tear. The right choice depends on your personal preferences and business goals.
If you opt for a long-term rental, Apartments.com is here to simplify the process. Our comprehensive suite of Rental Tools makes managing properties easier than ever. From tenant screening to expense tracking and property listings, we offer everything you need to streamline rental management. Get started today and maximize the potential of your rental business with Apartments.com.
FAQs
Can I rent out my property just for a weekend?
Yes, you can rent out your property for just a weekend. This is a common practice for short-term rentals, especially during special events or holidays. Just be sure to check your local city ordinances and any HOA rules, as some may have minimum stay requirements.
Do I need special insurance for short-term guests?
It is highly recommended to have special insurance for short-term rentals. Your standard homeowner's policy may not cover damage or liability from paying guests. Look into short-term rental insurance policies to ensure you're protected.
How do I avoid legal issues when renting for festivals?
To avoid legal issues, start by familiarizing yourself with your city's short-term rental regulations, including any permit or tax requirements. Use a clear and comprehensive rental agreement that outlines rules, occupancy limits, and noise policies.
What if my property is in a zoning-restricted area?
Renting in a zoning-restricted area can be challenging, as it may be prohibited. First, verify the specific zoning laws for your address through your local planning or zoning department. If short-term rentals are not permitted, you could face fines or legal action, so it's crucial to ensure compliance before listing your property.
