Thinking About Owning a Vacation Property?
The season for snow-birding is soon upon us, and for those flocking to the tropics, renting out one’s own home, or purchasing a vacation property can be a fantastic way to earn income, and give guests a welcoming alternative to staying in a hotel. With careful research and planning, becoming a seasonal landlord can be a lucrative opportunity. While getting into this business is rewarding, it isn’t without reading the fine print, so following some important tips can turn your vacation rental into a profitable retreat.
Review your insurance coverage. According to Bankrate.com, deciding to sign up for landlord insurance, versus using an existing homeowners policy will depend on whether you plan to have guests stay long term, or on an occasional basis. Experts recommend landlord coverage if the home will be tenant occupied for long periods of time, and utilizing one’s homeowner’s insurance if your house guests are only staying a short while. It’s a good idea to contact an insurance agent, and/or real estate expert for professional advice about protecting, you, and your investment to avoid any red tape.
Create an inviting atmosphere. This is especially true if you’re renting out your primary residence. Guests want that home away from home ambiance without feeling like they’re invading someone’s private space. Store personal belongings, and mementos while you’re away, and keep a supply of clean bedding, towels etc. specifically for overnight guests. Provide a few basic toiletries, and most importantly keep everything pristine! If you plan to rent for longer periods of time, consider hiring a cleaning service, or property manager to maintain the home in your absence.
Location is everything. If you plan on purchasing a vacation rental property to attract out-of-towners, geographic location is key. Obviously, a waterfront property in Miami is going to draw more attention than an inner city apartment, so doing some investigating to find the most desirable areas will increase the chances of profiting from your rental. Many landlords find listing their home with a property management, or vacation rental company a great way to advertise, and research other properties in the area in terms of current rates, and demand
Using your home as a vacation rental can be a rewarding opportunity whether you’re a seasoned real estate mogul, or just getting your feet wet in the investment world. The most important thing to remember is to do your homework and consult with professionals to make an educated decision. Owning a holiday home is a great way to meet new people, and if done right, can also boost your income potential!