Owning and Renting out a Vacation Home

Rules to Follow:

• You must learn the laws on short-term rentals. The locations that are perfect for vacation rentals usually have a lot of hotels and tourism. These areas typically have definite laws relating to short-term rentals.
• Short term renting is considered less than one month. (nightly, weekly)
• Be sure to talk to a property manager or the city, to find out the legality of short-term renting in that specific region.
• You must find a rental that either has a long peak season or more than one peak season.
• Having only one short peak season can cause financial woes during the downtime
• Learn what areas have a lot of success when choosing location
• VRBO/homeaway and Airbnb have many vacation homes that have already been reserved and reviewed.
• Purchase a home in an area people love. This will make it easier to book up
• Find a Nice Property at Reasonable Price. I usually look for cheap finds when looking for real estate, but to find your dream vacation home in the best location, you need a nice property in a great area, at a decent price.

Advantages:

• You can own a vacation home without it being a financial burden
• Owning a vacation rental is an investment that will make you money
• Free Vacations

Disadvantages:

• Traditional Mortgage
• Down payment
• Furniture/upgrades may be needed
• During peak holidays you may want to rent the home out instead of using it for yourself
• There’s always the worry tenants will wreck the place. This is why you ask for a security deposit

Tips:

• Hire a property manager to take care of all day to day operations
• Put the home on Airbnb or Homeaway
• Choose a great home and an ideal area
• There will be added expenses so be prepared
• Up your marketing
• Have a professional take photos/videos
• Learn what added accommodations are suitable for your area (hottub, sled, surfboard)