Short-term rentals offer unique tax advantages for non-real estate professionals. Understanding income classifications and tax implications is key. Best practices include keeping good records, conducting a cost segregation study, leveraging tax deductions, and considering benefits for high-income earners.

There are several factors to consider when operating a short-term rental, from zoning laws to occupancy restrictions to tax requirements. Here are seven steps to take to ensure that your property is compliant with all relevant regulations: