When you’re thinking about getting into the vacation home rental business there are some important factors you should consider before ever making that first purchase. At Topsail Realty we’re experts in the vacation rental industry and can help you with your rental property. Features such as location, type and size of home, the amenities you offer and what you will be charging can make or break your vacation rental investment. The vacation rental industry is ever evolving so we stay on top of vacation rental industry trends and how they affect our homeowners. Following are details that are at the top of the list for things to consider before investing in your first vacation rental.
Location
Chances are you’re thinking about purchasing a vacation rental in a location where you’ve experienced your own vacation in the past. You already know if it’s a popular area or not and what times of the year are best. The advantage of purchasing a home in an area you already like is that your family can use the vacation rental property yourselves.
Property Type
The type of vacation home you purchase for investment purposes have a lot to do with how much you have available to spend. If you don’t have a lot of money to invest then a condo might be the better option for you. If your funds are unlimited, consider the larger rental homes able to hold a large number of guests. The property type isn’t going to affect whether your vacation rental stays booked or not. Some vacationers prefer condos while others want a freestanding home to call their own while on vacation.
How Big Should It Be?
Do your homework before zeroing in on a property to buy. Research what the average nightly rate is for different sizes of property in the area you’re considering along with the local taxes for vacation rentals. Then add up the costs of owning a home of that size in that location (taxes, mortgage payments, maintenance costs). You can then determine how many nights you would need to have your vacation home occupied to offset what it costs you to own it. Sometimes a smaller property is more manageable financially and otherwise.
Property Amenities
Vacation homes with the best amenities are the properties that get rented out a long time in advance. It may be well worth paying a little more to purchase a property with a desirable amenity such as oceanfront location, an in-ground swimming pool, outdoor kitchen, sauna, etc.
Do research to determine what vacationers coming to the area are looking for in a rental. You could be offering the best price on your property just half a mile from the beach – but if vacationers are searching for properties right on the shore, you’ll have a difficult time renting.
Without bookings your investment will not be profitable, so don’t dismiss a critical amenity to save on upfront costs. When you invest in the right property, you’ll recoup your upfront costs as the bookings roll in and happy vacationers return year after year.
How We Can Help
If you’re considering a vacation rental investment, but feel uncertain about where to purchase it or how to market it, give us a call at Topsail Realty at (800) 526-6432 and we can discuss how we can help you show first-year profits on your investment.