For Vacation Property Owner

By: Aoureliou Televko

There are many factors which need to be considered when calculating how much rent to charge. Choosing the correct price means you get the most rent for your home without scaring away potential tenants by overpricing. Factors to consider when determining the correct price include: Location: The real estate adage "location, location, location" applies equally to rental values as to selling values. In other words where your property is located will, to a large extent, determine how much you can realistically ask in rent. Its proximity to desirable venues such as waterfront, downtown, universities/colleges or sporting/special events will impact on the demand and therefore the rental value. Check the rantal prices at holidayhomes.ca

Condition: Obviously the condition and level of upkeep of your property will have a considerable impact. (Perhaps this is a good time to reiterate the importance of describing and presenting your property in a truthful and honest way. The implications of not doing so can be far-reaching and costly). How much wear and tear do items such as carpet and vinyl have? Do the walls need to be painted? Is the lawn and yard mowed and free of weeds? Is the property neat and free of unnecessary clutter? Time of the year: Demand varies with the time of the year and it may be entirely possible that you will establish not one rental rate but several. The highest rate for the high or peak season, a lower rate for the "shoulder" seasons and the lowest for the off-season. In most areas of Canada the peak season would be considered the summer months (often preferred because families with children generally go on holiday while school is closed); the off-season would be considered the winter months. One exception to this would be ski areas.

Competition: How much are other houses in your neighborhood renting for? No matter what your house is worth, if other similar homes in the area are under priced, tenants will generally rent that home first. Formulas and rules-of-thumb for calculating rents are plentiful. We have found none which are foolproof. However, to give someone contemplating entering the fully furnished property rental business something to work with we offer the following very general rule-of-thumb. The monthly rent a property may attract on a "normal" long-term tenancy rental may be similar to the rent that could be achieved on a "vacation" rental for one week. E.g. A 2 bedroom condo, which may rent for $500.00 per month with a tenancy agreement in place, may rent for $500.00 per week on a shorter-term "vacation" rental.

Remember that you will be incurring expenses on the "vacation" rental that you would not normally incur on the other. Expenses such as electricity, gas, basic 'phone, cable, cleaning, etc. and other, less tangible, costs like wear and tear on the appliances and furniture.

This may be a good time to mention that there is a lot to be said for being flexible about rental rates and terms. Some owners fix a rate, and if they can't find a renter who will pay it, the rental stays empty! Far better to get something rather than nothing.

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