So You Want To Buy A Vacation Rental?

One option is to invest in a vacation rental property somewhere you already love to visit. That’s what we did.  You get it all: a home away from home when you want to go on vacation – and rent it out to guests for cash flow the rest of the time when you aren’t there. When you purchase a property in a location you love, it brings a unique perspective into what other guests may want when they travel to that area.  You know what the area is like and what other  can experience.  That knowledge can give you a competitive advantage in the marketplace. Before you fall in love with a particular property, consider properties that have a great location: close to local attractions, restaurants, nightlife, beaches or whatever it is that makes visitors select that location.  There is a huge difference between “driving distance” (or taxi) and “walking distance” when prospective guests decide which property to book.  It is wise to bear that in mind when you are selecting a property.  The distance

After you’ve selected the location, the next decision is what type of property do you want to buy? Condos can be a good choice for first-time vacation rental investors.  They tend to be less expensive than single family houses, and less maintenance.  They can include resort-like amenities that draw  potential guests , such as on-site staff, spas, pools, exercise facilities, and and a concierge service. A study done by Rental Advisor found that when investors restrict a property to 2 guests per bedroom, there is a reduction of 40% in profits and rental visibility. Rental Advisor suggests one bedroom units accommodate groups of 4 or more, with two bedroom units accommodating up to 8 guests. For added sleeping space, include multi-purpose furniture such as a sleeper sofa, futon, or two full size beds per bedroom. Doing so with significantly increase bookings and thereby increase your return on investment. A word about property that needs improvement… If your goal is to m

1. GUESTS WILL LOVE IT! Property management companies almost always hire a professional cleaning service to clean the property, have linens professionally laundered, and go the extra mile to make sure everything is perfect for the next guests.  Renting through a Property Management company helps make the stay more like being at a top rated hotel, as opposed to just picking up keys to an owner’s property.  Guests may be a bit leery of renting someone’s home… 2. GET FULL SERVICE PROPERTY MANAGEMENT Managing short-term vacation rentals can be a very tedious business, even if you only have only one property.  Most reputable vacation property management companies offer full-service property management.  They have the bandwidth to take care of everything from reservations, marketing the property, permits & licenses, checkins & checkouts, middle of the night emergencies as well as perks like concierge services. 3. THEY KNOW THE ROPES! Pr

Savvy real estate investors know it’s all about Location, Location, Location! Years ago, while on a sailing charter in the British Virgin Islands (our honeymoon, which is also where we got married) I had a brilliant thought “Wouldn’t it be cool to own a Caribbean vacation rental home , which would produce cash flow, and we could stay there when it wasn’t rented?” That was 15 years ago and the thought has since turned into reality.  Now we have a very good problem: our vacation rental has been booked so solidly that we’ve hardly been able to stay there!  Now we are planning to add a third story apartment so we can actually stay there and enjoy it! How do you find the right location? An argument could be made (sorry, I’m a lawyer!) that with proper marketing, any location could become a vacation destination .  I’m still am not interested in going to Fargo, ND for vacation, no matter have much marketing is done.  It is far easier to find a destination that is already popular