STR HUB
08
STR Property Selection for Agents · Lesson 8 of 12

Inspection & Infrastructure

A standard inspection asks: is this house sound? An STR inspection asks a second question: can this house survive 200 guest-nights a year? Different question, different checklist.

Septic capacity vs. sleeping count

This is the classic rural STR trap. Septic systems are rated by bedroom count — a 3-bedroom septic serving a house marketed as "sleeps 12" is a system running at double design load. Some counties cap STR occupancy at septic-rated capacity, instantly cutting the revenue model. Pull the septic permit, confirm rated bedrooms, and get a full inspection with pumping — not a drive-by.

Well water

Wells that serve a couple fine can fail a full house running four showers and three laundry loads a day. Order a flow test (gallons per minute over sustained draw) and water quality testing. Guests write reviews about water pressure.

Electrical for the amenity plan

The hot tub your client plans to add needs a dedicated 50-amp circuit; the EV charger guests increasingly expect needs another. A 100-amp panel in an older cabin may need a $3–5K upgrade before the amenity plan works. Have the inspector assess panel capacity against the intended use, not the current one.

Insurance quotes BEFORE closing

Non-negotiable. STR properties need commercial or specialty STR policies — a standard homeowner's policy excludes business use. Some properties are hard to place at all: certain roofs, wildfire and flood zones, older cabins, properties with pools and no fencing. A client who discovers a $9K premium (or no willing carrier) after closing has a broken pro forma. Get a bindable quote during the option period.

Short-notice cancellation clauses

If the property has future bookings, understand what happens to them at closing — and warn clients that carriers and permits can also force cancellations. Cancelled guest bookings mean platform penalties and reviews for the new owner.

Go deeper: the STR Due Diligence Checklist and the STR Insurance Guide.

ACTION: Add three lines to your inspection-period template: septic rating vs. marketed sleeps, panel capacity vs. amenity plan, bindable STR insurance quote in hand.

Next lesson: financing fluency — DSCR loans, the 10% second-home play, and why pre-approval conversations sound different for STR buyers.

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