Lesson: Due Diligence – The Deal-Breaker Checklist Before You Buy or Lease
Module 2: Evaluating Opportunities and Markets
Due diligence for a short-term rental is the checking you do after a property fits your brief and before you sign. It covers legal permission, the physical condition at full guest capacity, market demand, the numbers in a bad year and whether you can actually run it. Any red flag that can't be resolved before signing should stop the deal, however good the property looks.
What this lesson covers
- What due diligence is, and when to do it
- Where it fits in this module
- How to use the checklist
- Three stages
- Part 1: Legal checks
- If you are buying
- If you are leasing
- For every property
- Part 2: Physical checks
- Professional reports (purchase)
The full lesson is for clients
Clients get every step, the live walkthrough videos and our exact settings and templates from Skye’s Beach House.
Questions people ask
What should I check before buying an Airbnb property?
Whether the rules allow short-term letting at the address, the building's condition at full guest capacity, local demand and competition, the numbers in a bad year, insurance, and whether you can get cleaners and trades.
What are red flags for an Airbnb investment?
Rules or strata by-laws that restrict short-term letting, no sensible insurance quote, oversupply, reliance on one event, numbers that only work in a good year, and a lease shorter than the time it takes to recover your setup costs.
Should I get legal advice before leasing a property for Airbnb?
Yes. A property lawyer in your state should review the lease and any short-term letting consent, because tenancy rules and what makes a clause enforceable differ by state.
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