It's a dream I've heard so many people express: 'I want to run a bed and breakfast. They are so cute' Or 'I want to own a vacation rental property, so I can get a free vacation and make money the rest of the year.
Vacation Rental Ownership
It all boils down to knowing what you are buying, what it could cost you and being prepared before you buy. Here are 7 tips on what to consider before going into vacation rental ownership for would-be vacation rental owners.
1) Do you have enough cash?
Can you afford the the mortgage if your home is not rented at all? And If interest rates rise (which they almost certainly will) can you still afford the payments along with the utilities, taxes, insurance, management fees, pool cleaning, lawn maintenance, running repairs – can you still afford it?
2) Before purchasing a Vacation rental Home,
Make sure that it does not get repossessed if somehow your marketing is fruitless at first. Be wary of 'realtors who promise you'll rent your property for 40 weeks a year.' It helps to do your homework. Is there already rental saturation in the area you want to buy in, or are people already lining up for too few vacation homes?
3) You can't get too personal with your vacation home
Especially if you are using it for renting. You have to think what your client wants. That means your ideas of the perfect bright red-orange kitchen might have to be shelved if your customers have more subdued tastes.
4) Dont expect rental income from your friends
They are more likely going to hope for a freebie, staying silent if they are too embarrassed to ask. Remember, owning a vacation rental is a business, or else it becomes a very expensive cottage.
5) It is time consuming to look after the property.
Especially if you organize your own rentals. 'Make sure you know who is going to manage your home in your absence. Running a full-fledged bed and breakfast is even more time consuming, requiring much longer hours than an office job, and probably hiring staff to help you manage.
6) Are you ready for the grief caused by hurricanes?
It is a common occurrences in the tropical climates where vacation rentals are most popular. Can you be 5000 miles away, knowing there are guests in your villa, there is a hurricane approaching and all the power lines and telephones are down. What do you do?
7) Always check out the area and the site of the Villa.
Make sure you see your vacation rental property before buying one especially if this is your first purchse.
Think Before Jumping into Vacation Rental Ownership
Every one of them enjoys owning vacation rental property, but too many people jump in too soon, only to realize that this is not the place they want to be. Before you jump in, make sure you really want to own a vacation rental. If you do, I wish you many years of success and pleasure.
