If you’re an investor with property in a favorite vacation hot spot, consider renting your property as a vacation home. Yes, you’ll have to cater to multiple renters during the year as opposed to one long-term tenant but the vacation niche is very popular and tourists are looking for other housing options besides stuffy hotel rooms.
Many families today prefer to rent a house or condo if they will be away for more than 3 nights. Private properties offer more space, a place to cook, and rooms to separate the children from the adults. It’s also becoming more popular for extended families to meet up at a vacation home for a reunion. HomeAway.com is the leading site for renting vacation homes and their rental numbers have multiplied by 10 in the past 5 years.
Vacation rental properties really vary and although you want your property to stand out from the rest, you must be factual, honest, and up-front when presenting the property information to prospective renters. Some people prefer private out of the way places while others like to be in the midst of activity. Be clear about your property’s features and if you offer a refund or not. They also need to know if there is air conditioning and what kind of heating is provided. Have lots of pictures available. Think about if you are going to cater to adults or families. It’s possible to ease into it by offering a discount to family and friends. You can ask them for feedback about what should be included or what they needed while there.
Vacation rentals require a fully furnished home and you should hire a local cleaning service to make things sparkle in between renters. Think about what furniture is best for a large group of people and how many people your property can accommodate comfortably and safely. Be prepared that whatever items are left in the property WILL get used by the tenants so take out any personal or valuable items.
Leave a lasting impression on your vacation tenants by leaving a standard welcome packet at the property. Include things like places to do laundry or grocery shopping, food delivery phone numbers, places of worship, or entertainment hot spots. Also leave an emergency phone number in case there are any unexpected problems for your tenants. The easier and more pleasant you make the rental experience for your vacation tenants, the more likely you’ll get positive reviews and word of mouth advertising from previous renters.
This article leaves out the most important question any investor should ask about vacation rentals. Will they cashflow? While all places vary most real estate professionals will tell you they don’t, so you should plan on trying to enjoy it yourself as much as possible because you will be laying out cash for it.