If you’re thinking about investing in vacation rental properties, the holidays are a great time to do so. Short-term rentals can be highly profitable if you choose the right location and property. There are several things to take into account before you choose a rental investment property.
Keep the following in mind as you shop for properties:
- Do you live near a vacation destination? These are the best types of properties for short-term rentals. This is especially true if you’re located near five-star resorts and expensive hotels.
- Local laws and regulations vary from city to city. Before you invest in a vacation rental property, make sure you’re familiar with the laws in your state and region. Look for areas that allow you to advertise your property on HomeAway, Airbnb and similar sites.
- With the right marketing strategy, you can turn your real estate investment into a great source of secondary income. Additionally, you can carve out time for your family to stay in your property and enjoy tourist hotspots.
- Some savvy investors hire a property manager to provide turnkey service and relatively passive income while they build equity in their property.
Screen Tenants Carefully
It’s important to screen tenants closely. Check reviews from previous landlords and make sure anyone booking your property understands the rules you have put in place. This is the number one way to protect your investment and avoid expensive refurbishing, which is one of the downsides of investing in full-time rental properties.
Market Around Local Events
Whether you plan to market around specific events or local attractions, it’s important to time the market precisely. You’ll also need to set aside a reserve for the slower season if you are depending on vacation rentals to pay for your property expenses.
You may choose a property by the ocean and have seasonal traffic during the warmer months or invest your money in a ski lodge that’s busy all winter. Either way, it’s important to understand the income you can generate prior to putting money down on a vacation rental investment property.
You can also market around local events, such as music festivals or fairs, especially if they happen in the offseason. This can help you increase your total annual income and maximize your earnings.
Maintain the Property
Vacation renters expect an extremely well-maintained property. Staging between visitors can help you improve your ratings and attract future visitors. If you don’t live locally, consider hiring local caretakers to check on the property and keep guests happy.
Keeping all appliances in working order, simplifying entry with keyless door locks and receiving payment online can simplify life for both you and your renters.
Provide Good Customer Service
Good customer service is the hallmark of any business, especially a vacation rental. If you provide great service, you can expect return visitors and referrals, which are key if you live in an area saturated with short-term rentals.
OneTrust Home Loans
If you are looking for a mortgage loan officer with your best interest in mind, we can help you navigate the details of securing a mortgage for a rental property. if you already have a vacation rental, consider refinancing your existing loan to take advantage of today’s low rates. You can even take advantage of your equity to secure a mortgage for a second or third investment property.
Contact the Potempa Team with OneTrust Home Loans to set up an appointment today!