Short-term rentals (STRs) are properties rented for periods of less than 30 days, typically through platforms like Airbnb, VRBO, or Booking.com. STRs can generate 2-3 times the revenue of traditional long-term rentals in the right market, but they also come with higher operating costs, more management intensity, and regulatory risk. Operating expenses include furnishing, cleaning between guests, platform fees (typically 3-15%), utilities, and consumables. Many municipalities have enacted regulations restricting or banning short-term rentals, making local ordinance research essential before investing. Successful STR investors focus on occupancy optimization, guest experience, and dynamic pricing strategies.