The Perfect Vacation Rental Home: Your Definitive Rental-Buying Guide
Vacation properties can be a smart investment. You can enjoy them yourself, and hopefully, you can earn a profit by renting them out to other would-be vacationers. However, there are some things you need to consider before diving into the vacation market.
Buying the Right Rental Property
Starting your business off on the right foot is imperative when considering long term success. One of the tools you have at your disposal is registering your business as a Florida LLC. This can be a huge first step since it will provide you with much needed personal liability protection and also add taxation flexibility. Another idea is to heavily research and network in the area you want to purchase rental properties in. By creating business connections that are tied to the rental market, you can provide yourself with options when you look for new places to rent. Having a seasoned Realtor like Michelle Thomas can also connect you with tradesmen in the area to revamp properties that may need some work. Additionally, this resource can provide you with accurate rental pricing that keeps your place booked year-round.
Your first step when researching a vacation rental is to gauge home prices where you hope to buy. With this in mind, you could make a reasonable offer and know you aren’t overpaying. It’s also important to ensure the market in your preferred area is on an upward trend, giving you solid prospects for both a profitable resale and a decent income should you use it solely as a vacation rental. This is particularly important if you get a mortgage — rather than buy outright — to avoid negative equity. After all, the goal of owning a vacation rental is to earn a profit, or have a place to spend your time off without stress.
Decide the Type
Next, before you jump in, you have to decide whether you’d like a condo or a more traditional home. To make an informed decision, it’s good to know the advantages of each. For example, condos can be a great investment, especially if you’ll be staying there for a large chunk of time. Indeed, your energy and utility bills, and you won’t have to spend as much time (or money) maintaining a yard or landscaping. In contrast, houses offer a different set of benefits. Often, you won’t have monthly fees (unless there is a strict HOA), and houses tend to give higher returns on investment if you choose to sell up at some point. Best of all, you’ll be able to fully realize your vision, as you can transform your home in ways you just can’t with a condo.
With rental properties, you’ll have to consider the long term. Unfortunately, that means planning for things like changing shorelines and potential weather-related disasters. Thankfully, there are steps you can take to be ready for anything, including earthquake-proofing your home. Indeed, that could be as simple as ensuring your property has good drainage to prevent water from accumulating under the home and destabilizing your foundation.
Pick the Right Amenities
Not only do you want potential guests to be comfortable, but you yourself will want to enjoy your property. That’s why it’s good to look into the most popular amenities available from other rentals, such as those near you. While having access to a pool or a hot tub may be an excellent addition, you always need to hit the basics first. In particular, focus on having a quality kitchen, decent laundry services, available parking, and great entertainment options, including a television (quality sets can be purchased for under $500), internet, or a gaming console. Even if you only use the vacation home for yourself, these additions will be worth it to make your trip more enjoyable.
Have a Draw
To make the most of your new investment, you might want to be near to something that will draw visitors in. After all, the more options a place offers, the more exciting it can be for both you and your guests. With that in mind, find out what your chosen state has to offer, and what your specific town is close to. Of course, if you know what you enjoy, you may not need variety to spice things up and can instead focus solely on your favorite leisure activities.
With the right research, you have a strong chance of earning a good income from your vacation rental. Of course, the best arrangement allows you to enjoy your property as well. In the end, half the fun is taking time for yourself and unwinding for a week or two.
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