The fact is that there are many people who make a living by renting out their properties to others, whether it be to friends and family, to tourists who are looking for a rental holiday home, or whether they are outsourcing that work to a rental property management company. In fact, one of the most sought after services in the market is that of vacation rentals. If you’re considering renting out your current home to tourists on a seasonal, and occasionally a long term, basis some time in the future for a profit, you may want to consider reaching out to a rental property management company to help offload the work and demand. That profit could come in the form of rental gains, that can provide you ongoing passive income, or it may even come from the sale of the permanent place that is rented out. The opportunities of buying vacation rentals have been hitting the market in a big way lately, so it’s not surprising that the subject has become more popular than ever before.
For you, the real estate investor, is this a good thing? For some it is, while for others it is not, and we will be looking into the topic of whether considering vacation rentals as an investment is a good or bad thing for you in the next few points.
If it is a good thing for you to do, it is certainly better for you to have someone else other than you and your family, such as a rental property management company, be responsible for the house while you are away, and for you to have lowered utility bills. However, if you are buying a vacation home as an investment, then you have to take into account the fact that any maintenance and upkeep that must be performed to keep it in good shape will fall on your shoulders, or the rental property management company on your behalf. You will be largely responsible for the maintenance of the home and any improvements that must be made are going to have to be paid for by you. At the very least, you will have to pay for permits to have people or companies inside who do the required maintenance. In addition, you or the rental property management company you’ve hired will have the responsibility of chasing tenants for their rent; you will have to be able to ensure that nobody goes off without paying rent; and you will have to be able to evict people if they don't. All of these costs are added onto all of the regular costs of keeping a home as well as the expenses of maintenance that is needed in order to keep it in good shape.
On the other hand, if you are worried that it is a bad decision for you to invest in vacation rentals, you should check with a rental property management company who has knowledge or experience in these kinds of rentals. You have to remember that if you are buying a place as a residence, you will also need to be aware of the upkeep costs, and this means that if you have a family, they may have to pay for the services. For a family of four, this alone could lead some to consider purchasing their own residence once they are done with their vacation rental.
Of course there are other benefits to having a vacation rental, such as providing you with additional income, and the occasional amenities that you may want to make into permanent living spaces, and they can also just be a nice place to relax for a weekend, and have people over. Sometimes it's nice to have people appreciate what you have that others don't have that they can take advantage of.
None of these things are bad things if you look at them in a realistic manner but of course, as any rental property management company will tell you, you are the sole decider in whether or not this is something you wish to pursue. Just remember that if you are having dreams of buying vacation homes that you can turn into income generator dreams, that you have to not only be aware of the potential costs of upkeep associated with them, but you have to be aware of the additional expenses you may have as well which you must factor into any decisions you may make as well. You may want to consider referring to a rental property management company to help you with starting and maintaining your rental business.