Air holes, yes... Drain holes, optional... You don't need very much water, SRS... Your kitchen scraps have water in them... Now, stop off at your local gardening center and get some compost starter... It's grainular and just sprinkle some of it in there... It will have the bateria to start the process... After you have yer composter going for awhile if you just empty 3/4's and leave a 1/4th that is enough bacteria to get the next batch going again so technically speaking it's like sour dough bread... Once you get it going it will keep itsel;f going... Our composter is a 2 chamber tumbler... It has 2 40 gallon chambers so we can empty one completely, use half of the other and have enough left to get both chambers going again...
Grass is fine but just grass ain't all that good... Lots of leaves if ya have 'um... If not, Janie will ship you some... lol...