If you’re thinking about buying a vacation property, you have likely considered renting it out while you’re not using it in order to generate some extra income and cover maintenance and other costs. In this blog post we’ll share a few tips around renting your vacation property and how to immediately begin renting it out after you buy.
Fully Prepare Your Home Before You Begin
You can begin renting through an online property management service like VRBO or AirBnB very soon after you purchase your vacation home, but there are a few things that you’ll want to do to prepare. First, ensure the home is in tip-top condition and is stocked with everything one might need. Buy a few sets of towels, sheets, pillow cases, dishes and anything else that will be used by your tenants. You’ll need a local cleaning service to handle cleaning after each tenant as well, but since there are many rental vacation homes here in Summit County you won’t have much trouble finding a trustworthy service.
Don’t forget: when you begin managing a rental property, customer service becomes your primary focus. The higher the quality of your accommodations and the more you put into sprucing things up, the more you will be able to charge as a nightly rental fee. Think about all of the hotel stays you’ve had – which ones stand out in your mind? You’ll want to impress as you will need positive reviews from your renters in order to stay in operation, so focus on their happiness and enjoyment.
Treat Your Business Like a Business
If this is your first time managing a rental property you’re going to have the opportunity to make some mistakes and learn from them as you go. Setting your venture up as a business from the beginning will make life a lot easier on you later on. Making use of an online invoicing and bookkeeping system will give you an ‘at a glance’ look at your revenues and profitability on a daily or monthly basis. If you use an online payment system, you will be able to accept credit card payments from your tenants as well. After you get more established you can even incorporate your venture in order to gain some additional tax breaks.
Financial Considerations to Keep in Mind
Finally you’ll want to ensure that you are staying on top of the necessary accounting and math to ensure your venture is profitable, or at least break-even. Figure out how many weeks or months you’ll need to rent the property in order to cover its mortgage, property taxes, homeowners’ association fees and expected maintenance costs. Tack an additional ten or fifteen percent to whatever numbers you come up with as a contingency to ensure you’re not left paying out of pocket at the end of the year.
Are you ready to purchase a vacation or investment property here in Summit County? The Smits Team are the local real estate experts, and we’re happy to consult with you to determine the best properties to suit your goals and your budget. Contact us at your convenience at (970) 668-2121 or by email on our contact form and let’s get started.