Many people who travel a lot, especially if it’s frequently to the same location, often feel that their needs would be better met through purchasing a vacation home. While it can be fun to stay in various hotels, the cost savings you can experience with a vacation home can make this investment worth it to many. However, it’s a select few who can afford to simply pay for their vacation home on their own. Others rely on the additional income from renting out that property when it’s not being used by them. If this sounds like something you’d be interested in, here are three tips for renting out your vacation home.
Make The Property Ready To Entertain
To appeal to those looking to rent a vacation home, it’s important that you give them things that they can’t get from a normal hotel room. To do this, Teresa Mears, a contributor to U.S. News and World Report, recommends that you do whatever it takes to make the property ready to entertain on its own. This means that it has all the amenities people would expect—like furnishing, linens, and a stocked kitchen—as well as additional perks like a hot tub, outdoor space, barbeque grill and more. When you feel that your home’s ready to house people without you being there to manage things, that’s when you should feel confident putting it on the market for vacation rentals.
Who’s Going To Manage The Home?
If you don’t have your full-time home near your vacation home, you may wonder how you’ll manage this property. While you can handle it on your own, you could also hire a property management company to take care of this aspect of your vacation rental. According to Jean Folger, a contributor to Investopedia.com, you may be able to save some money by handling the property management yourself, but that could also be a big investment of time. Either way, you’ll have to spend some of your money making sure everything’s running the way it should be.
Know Your Pricing Structure
The pricing you decide on for the rental of your vacation home will vary. According to Trey Duling, a contributor to BiggerPockets.com, a good strategy is to put your prices a little higher than your competitors in the busy season and a little lower than your competitors in the slow season. By doing this, you should be able to have a consistent flow of occupants, which will help to offset certain costs associated with owning a vacation home.
If you’re considering renting out a vacation home, use the tips mentioned above to help you figure out the best way to go about this for your finances and lifestyle.