What To Consider Before Buying A Vacation Rental Investment Property
The uncertainty of the stock market is prompting many investors to move their money into the real estate market instead.
Are you looking to invest in real estate and create a vacation rental property? How can you ensure that you are buying a property that will bring the best returns for your investment? Here are some tips to consider for a profitable vacation rental property.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
- Franklin D. Roosevelt, U.S. president
Tip #1 – Invest In a Location That Fits Your Both Your Budget and Your Lifestyle
It’s important to find a location that suits your needs -- a place you would visit and possibly retire. Beach and mountain areas are popular destinations, but people of all ages are thinking outside the box and investing in places like college towns.
Remember, short term rental properties are not always a house. Condos make a great investment and can save on startup costs and offer amenities, such as a pool, work-out room, and clubhouse.
Tip #2 – Startup Costs, Property Management Fees and Taxes
Whether you're investing in property in or out of state, it’s important to find a reputable property manager. A property manager will help market your listing, interact with your guests, organize cleaning services, and solve any other issues that might arise. Property Management fees range from a percentage of the rental income to a flat fee per month. When getting your rental ready to rent and market, property managers help with hiring photographers, writing up the listing, and getting your property online. It is vital that your online rental listing includes high-quality photos of both your property, and amenities and attractions in the area. You should also find an accountant to help take advantage of tax deductions -- it is well worth the effort!
Tip #3 – Consider Seasonality
Your profitability is better if you have a longer season. Beach, lake and mountain properties have very profitable seasons. Consider some of the off-season activities like festivals, concerts, golf, horse racing, and food and wine festivals. These events are ideal for boosting rental profits. If you want to do some research in the off-season rental industry, just do a quick Google search. You'll quickly find that there are lots of options for travelers who enjoy traveling during non-traditional times.
Tip #4 - Work With a Real Estate Agent
It’s exciting to think about property that will produce extra income and offer you a place to visit. Finding a good real estate agent is important too. Real Estate agents are most familiar with the market trends and have access to active listings as well as coming soon listings.
Tip #5 – Hire a Vacation Rental Designer
Vacation rentals are fully furnished. A vacation rental designer will help save with your startup costs by creating a plan that will suit both your property’s needs and your budget.
It is important to have a rental property that guests will want to return to and give great reviews. Designer’s that specialize in vacation rentals have the industry knowledge that help with “tricks of the trade”. Furniture, accessories, and linens are just some of the components of creating a guest experience that will rival your competition.
If you are exploring investing in a vacation rental property, we can maximize your investment and improve your returns! We are experts in the industry of vacation rental design. We can advise you on where to spend, where to splurge and how to find the right property management company for your needs. We know the keys to a beautiful -- and profitable -- vacation rental property. To schedule a consultation, call us at (281) 547-8276, message us through our website, or send an email to email@example.com.