Do you love spending summers at the beach, but let your vacation home sit idle the rest of the year? Or, perhaps you have just gotten into real estate and are wondering if a vacation rental property is really as lucrative of an investment as you think it is?
Millions of tourists flock to beach towns in Florida every year. Since the pandemic, American families are looking to escape their homes and enjoy national parks, beaches, and other outdoor destinations. If your beach house or mountain chalet is sitting empty this year, why not rent it out? Let’s explore how you can monetize your vacation home in a way that works for you.
How Do I Get Started?
1. Consider The Location
If you don’t already have a vacation home, let’s discuss what you can do to get started. First, must choose a location that is right for you. If you’re planning on using this as a personal vacation home and renting it out when you’re not present, choose a destination you love that could also appeal to tourists.
For example, a property near the beach, a national park, or the ski slopes could attract renters year-round. If you want to truly make money from this property, you must keep the interests of future renters in mind as well as your own interests.
2. Consider Your Finances
Be sure you are ready to take on the financial responsibility of owning a second home. While the goal is to have this property rented out most of the year, you will still need a substantial amount of money in the bank in the event your property has vacancies. In that instance, you would have to pay the mortgage yourself.
Few actually buy a home with cash, and it’s smart to consider your loan program options. If you partner with the right team, they can help you create a plan to finance and monetize your future investment with a clear head and full pockets.
How Can I Monetize My Vacation Home?
The most common way of building wealth through your vacation home investment (besides growing equity in a home that is constantly appreciating) is to host renters throughout the year. Let’s explore some of the “dos and don’ts” of attracting renters to your property and keeping them happy during their stay.
1. Don’t Cut Corners
Owning two homes is no joke, and if you’re going to rent out your vacation property you can’t skimp on the upkeep. Make a plan to travel to your home every few months to check on major appliances and assure your rental is safe and comfortable for guests. This is a great time to create a lasting relationship with a local house cleaning service that can freshen the place between guests.
2. DO Have Professionals On Speed Dial
Additionally, you’ll need to secure a team of professionals to take care of any issues that may arise when you’re away. This may include an electrician, contractor, plumber, exterminator… the list goes on. If this seems overwhelming, don’t be afraid to hire a property manager to take care of the property while you’re away.
3. Do Advertise With Intelligence
If you want to attract clean, lovely guests to your beloved vacation home, be mindful of how you advertise. Many homeowners find great success advertising their home on Facebook through a network of family and friends. Others enjoy the simplicity of Airbnb or VRBO to advertise their vacation rental home, as you can easily turn dates off when you plan to be there.
4. Don’t Forget To Optimize Your Listing
Be sure you are optimizing your listing. There are thousands of rental properties out there, so why should renters choose your home for their vacation? Using clear and aesthetically pleasing photographs is a great place to start. No one wants to click on a photo that is blurry or dark, and cluttered rooms are unappealing.
Before taking photos, open up the drapes, clear the clutter, and fluff the pillows! You spent a lot of time and effort decorating your vacation home, so you want to show your property in its best light. If this feels stressful, consider hiring a professional to stage and take the photos for you. A cute, concise description of what makes your home special is the icing on the cake.
Whether you’re new to the world of real estate or your vacation home is one of your many investment properties, you can monetize your vacation rental home by advertising with intelligence, optimizing your listing with beautiful photographs, and creating a safe and lovely environment that is appealing to renters.