Whether you are purchasing a home in warm weather for winter or a getaway home in the mountains, a vacation home is a good investment. During those times you won't be there, you can make extra income utilizing your home as a vacation rental for travelers. While it does make sense financially and logistically though, there are a few things to consider. Before you choose your vacation home, let us walk you through some things to think about.
KNOW ALL THE RULES
Every neighborhood has a different set of guidelines and a majority have some sort of governing body. However, if you have a home that is not part of an HOA, you have a little more leeway. If you are planning to purchase a home in a community, or already have a home you are interested in renting out, check the rules first. Not all homes can be used as a rental property and some guidelines state that if it is used, the governing body receives a percentage of profit. Make sure you know all the rules before making a big decision.
Don't set extremely high expectations initially on what you expect regarding rental income. There are expenses that come along with vacation rentals including maintenance and repairs, cleanings in between bookings, posting your listing on vacation rental sites, and possibly property management. Be sure to create a realistic budget so that you can effectively plan.
CALCULATE ALL COSTS
There are a lot of little details that go in to preparation of a rental property. If you are just purchasing the home, there will be added expenses above the purchase price. Consider renovations, utilities, HOA or condo fees, property taxes, insurance, all furnishings, and appliances. Depending on location, you may also want to purchase ski equipment, snowboards, kayaks, and other water equipment.
HAVE A BACKUP PLAN
Have someone you can contact to handle any maintenance emergencies in the event you are away. It is important if you are renting out the home that you prioritize guests needs. Having someone always available is very important. If your property is in a hurricane zone, you may need shutters put up last minute. It is important to have someone reliable on call who can be there when you can't.
HAVE A BUSINESS PLAN FOR YOUR RENTAL
There are multiple routes to choose from and sites to post your property. If you are planning to do your own advertising and marketing, make sure your content is detailed and your pictures are catching. Having a good cleaning team is crucial, you will always want to wow your guest. You will need payment capabilities if you do not use vacation sites for your listing.
Purchasing a vacation home is a great idea and can be very profitable for you. There is a lot that goes along with it, but that is where we can make the entire process easy and smooth. If you are interested in renting our your home and aren't sure where to start, we would love to help! For more information