Dos and Don’ts for vacation Rentals

Acquiring a property to use as a vacation rental can be a great investment, and if you want to make that investment safer and more profitable, you should consider these aspects:

1. Create a financial plan. This will help you predict the potential income and expenses of owning a rental property.
2. Get a real estate agent knowledgeable about investment properties to buy. A good agent can help you find a property in a good location with the best rental potential.
3. Know the property, whether it is new or not. Carefully check all parts of the house and repair or replace what is necessary.
4. Hire a property manager. Check their reputation in the area and in the interview ask how they will: Maintain the house so it stays in good condition, communicate with you, and maximize your income.
5. Perform preventive maintenance. It’s better to repair or replace that aging water heater or HVAC system now than to break it during the tenant’s stay.
6. Make strategic use of the house. If your goal is to maximize rental income, consider staying there outside of peak seasons.
7. Plan to reinvest in the house. Estimate that you will have to spend 1% of the property value each year on maintenance.
8. Be realistic about prices. Research rental rates in the area and don’t overestimate them. Your ultimate goal is to make a reasonable profit and that will require a high occupancy rate.

Sources: enterprise.com, sfgate.com, Morris Invest, blogs.netintegrity.net For more personal and direct advice about your vacation rental, you can contact me and I will be happy to help you.