Are you planning to buy a second home to turn it into a vacation rental? Before you start checking in guests, there are a few things you need to think about first. RE/MAX Select Professionals offers a few questions to ask yourself before you turn your home into a vacation rental.
Are You in a Location That’s Popular with Tourists?
This has to be the first question you ask yourself before deciding on where to buy. If people are not frequently traveling to your area, then you may not be able to make enough profit to justify the added expenses of getting your home ready to rent. That’s not an issue for folks who live in or near Palm Coast, since this destination is located on the Atlantic Coast, offers temperate weather and an easy commute to St. Augustine and Daytona Beach—and there are ample things to do. From golf courses to beaches to amusement parks, there is something for everyone throughout the area.
While you’re searching for the right spot, it can be helpful to stay in a vacation rental in the area you’re considering. Little is more useful than a personal perspective on what counts. Look for a rental that offers the support and conveniences that are useful to both guests and property owners, see what amenities pack a wallop, and find the location that makes the most sense to you.
Will Your Rental Property Offer Enough Return on Investment?
As Forbes points out, most people opt to start a vacation rental to generate extra income—which is extra tantalizing during your retirement years. While you can indeed make some extra money renting out a vacation property, there are also some extra costs involved. For one, you may need to hire a property manager. This is a wise choice for homeowners who will be away when their property is rented, who do not want to deal with the logistics of renting a property, and who may be worried about marketing their rental to the right audience.
Property managers typically take a percentage of the rental fees you collect, so be sure to factor this into your overall vacation rental plan, as well as any hotel taxes, insurance costs, or utility fees you will need to pay. And keep in mind too that while it’s not required for vacation rental owners to form an Arizona LLC, it’s still worthwhile when it comes to liability and tax advantages. You can make this an easy task by filing through an online service.
This may seem like a no-brainer, but many people don’t really think about what it means to have complete strangers staying in their home. If you are going to rent your property out to vacationers and travelers, you will need to think about how that will impact the furniture, appliances, and decor you put into it. For a vacation home to shine, it needs to be decorated in a fairly neutral fashion. This means using minimal furniture and decor throughout the areas that will be accessible to guests.
Will You Be Able to Keep Up With Maintenance Around Your Home?
In addition to hiring a property manager, you may need to look for other professionals to help you keep your rental in good condition. U.S.News notes second home maintenance can be a challenge, especially if you live far away for most of the year or you have other things keeping you busy during retirement, like playing with grandchildren, volunteering and so forth. If you have yet to buy a vacation home, you can ask your property manager to take care of repairs and maintenance for you.
Of course, you can also DIY home maintenance tasks when you are around. That includes simple projects, such as changing batteries in smoke detectors and checking your roof for damage. If you opt to forgo the DIY option, you may also have the added stress of finding contractors to take care of repairs when you cannot do so yourself.
Owning a vacation rental property can be a lucrative way to earn extra income and a good use of a second home when you are away. Of course, be sure that this is the right choice for you so you can make getting started less stressful. And partner with RE/MAX Select Professionals for the best experience in your property search.
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