Many people are taking advantage of property investment opportunities and seeing a nice return. If you own multiple properties, one great way to see success is to turn them into vacation rentals, especially if you live in popular areas. Getting your home to be vacation rental property is pretty easy to do, but it’s also important you take the right steps and precautions. Check out these five tips for using your property as a vacation rental.
- Have a handyman.
With multiple people staying in your property, it’s possible that things will go wrong. If you don’t live near your vacation rental property, it’s a good idea to find a local handyman who can provide the assistance your home needs while you’re away. Be sure that this person inspects the property thoroughly to assess any issues that renters may be bringing to your attention. In addition, make sure your handyman knows when it’s necessary to call in local professionals. According to Fix It Right Plumbing at https://www.fixitrightplumbing.com.au/plumber-dromana/, “Professional plumbers ill have a better understanding of a home’s water system than a general contractor or handyman, so opting for professional service for large-scale projects can be more advantageous for your time and wallet.”
- Hire a property manager.
In addition to having a local handyman on call, you should also invest in a property manager. This will be the on-site person there to conduct inspections, handle any issues that arise, and be the one to handle the rental agreements. Property managers can make turning your home into a vacation rental easier because they handle all the physical tasks while you just handle the money. Depending on where you live, this property manager may just be a local individual or you may find a company that specializes in this service. Just know a property manager will come with a fee, so you’ll want to include that cost in the rent of your home.
- Decide if it’s a good idea.
There are plenty of pros and cons when it comes to using your property as a vacation rental, so it’s important you are aware of all the risks and rewards. For instance, are you comfortable having total strangers stay in your property and use your things while you’re not there? If not, then this may not be a good idea. In addition, you should also think about the likelihood of a renter. If you live in a popular vacation area, you may not have trouble renting out your space. But if you live in a more secluded area, you may find the renters are few and far between. If you’re counting on renters to make the payment on the property, it may be too big of a risk to take.
- Determine your own schedule.
Chances are you may want to use the vacation property for yourself, but keep in mind this will be money out of your pocket. The best thing to do is to either determine your own vacation schedule right away and block those weeks from being booked. On the other hand, you can also see what weeks haven’t been booked for the season and decide to take your vacation then. No matter what you decide to do, knowing your own schedule in advance can help ensure you’re not taking prime vacation time away from a paying renter. After all, the better customer service and experience your renters have, the more word of mouth and return visits you’ll get.
- Understand the laws.
Rental properties come with their own set of laws and regulations. As the property owner, it’s extremely important that you understand the laws associated with vacation properties and that you adhere to them. After all, making a big mistake could not only cost you a hefty fine, but it could also put your property at risk of being garnished. In addition, the IRS laws vary based on your usage of the property, so it’s important to understand this in order to ensure you don’t make any tax mistakes. Finally, be aware of Squatter’s Rights, especially if you have someone looking to rent for an extended period of time. The last thing you need is for someone to take over ownership of your property because you weren’t educated enough.
Owning a vacation rental property is a great way to generate some extra income on a house you are paying for. But before you jump into the vacation rental pool, be sure you follow these tips.