Instead of selling your home and buying a new one, perhaps you’ve considered keeping it as an investment and putting your home on the vacation rental market. Or, if you currently have traditional rental properties, maybe you’ve thought about converting one or more of them into short-term vacation rental properties.
With short-term vacation rental sites like Airbnb and VRBO, venturing into the vacation rental market is easier than ever. And if you do it correctly, it can be a very lucrative venture. But before you dive in and incorporate vacation properties into your real estate portfolio, consider the following points.
Keys to Vacation Rental Success
1. Get the proper permits. Depending on what city or town your home is in, you may need a permit to legally put your property on the vacation rental You may even find out that your town does not allow vacation rentals. Go to the website of your city to find out. While it’s tempting to skirt around the laws and plead ignorance later, that’s not a good strategy. Always do things the legal way so you have fewer headaches later.
2. Get professionals to help you. This means talking to your banker and getting a separate checking account set up for guest payments. Talk with your insurance agent to make sure your coverage applies for vacation rentals. Get your attorney involved to draft a rental agreement that protects your investment. You may want to also consider hiring a professional home stager to stage your rental, and a photographer to take some great marketing photos.
3. Get your ongoing team lined up. Managing a vacation rental requires many steps on a daily or weekly basis. This can include having a cleaning company on retainer so you can have quick turnarounds of the home. You may also want a property manager to help manage the day-to-day activities like guest check-in, check-out, lawncare, and maintenance requests. While you could do these things on your own, having professional help will make management much easier.
When you follow these simple steps, you’ll find that vacation rentals can be a great part of your real estate portfolio and can positively impact your bottom line. If you need more advice about vacation rentals, remember that you can always find many great real estate tips on our Facebook page. If you’re thinking about buying or selling your home, we can help! Contact us today!