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One of the best ways to supplement your income and help pay for a vacation home is to rent it out when you’re not using it. The added rental income can go as far as to pay off the mortgage, but it takes time and effort. Before you decide what to do with your property, here’s what you need to know before renting out your vacation home.
Perhaps the most significant decision you need to make before renting out your vacation home is how you’ll manage it. Will you hire a property management company or manage it yourself? Managing a rental property is a full-time job between taking bookings, cleaning and setting up the property, being on-call for renters, and fielding many phone calls.
A property management company will cut into your budget, but it will save you a lot of headaches and give you the advantage of working with others who are familiar with managing a rental property.
Now that your vacation home has to attract and host visitors, maintaining your property’s appearance will be crucial. Does your vacation home need any renovations before it can safely host guests? Take care of any lingering property issues before you allow renters to enter.
Also, consider what’s inside your vacation home and what you can upgrade to make it more comfortable for visitors, such as linens, mattresses, towels, pillows, and tech amenities. Better TVs and improved Wi-Fi can make a big difference.
As a rental property, curb appeal is much more important than it was before. Does your property need a new coat of paint? How is the landscaping? Could any renovations make it more attractive? Consider these questions before deciding to rent it out.
Don’t forget about the security of your rental property and any valuables within. You’ll want to either move anything valuable out of the rental home or store it securely on the property out of the guests’ reach.
There are, of course, many financial considerations to think about before deciding to rent out your vacation home. Do as much research as you can on other rental vacation homes in the surrounding area to get an accurate estimate of your potential income. Take an inventory of all necessary upgrades and renovations, as well as other required expenses. How long until your rental income covers those costs?
Of course, you could always invest in a new home to use exclusively as a rental property. Some choose to buy a property as an investment property to rent out in popular tourist communities. A busy and attractive tourist location, like the 30A beach properties of Florida, offers a steady stream of visitors and has a proven record of earning income.
There’s a lot you need to know before renting out your vacation home, from what type of linens you need to how it’ll affect your taxes. But if you find that your vacation home is often vacant and is becoming a financial burden, you can turn it into a booming rental property in only a few short steps.
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