Getting into the vacation rental business, whether it be with just one property, or with several, rentals has become big business, websites like Airbnb and VRBO help owners and renters alike by facilitating the rental process. The advantage of staying in a home environment vs. a hotel is quite tantalizing for many people, especially families. Here are some things to consider before you go scouting out your first vacation rental property.
Location, Location, Location
So it’s no big secret that location is a key ingredient to success here, it is for most businesses. Vacation rentals are no different. Where are you looking to buy? What is in the area that is going to draw people to your property or unit? The amount of money you will make as vacation rental income is going to depend on where its located. Is it in the middle of a city? Is it in a resort town that has high and low seasons? Take these things into consideration when looking at where to buy – location is a big determiner for vacation rental investors.
Who will be running the show?
If you are looking to invest in a vacation rental, think about who is going to run it for you. Are you going to use a management company to take care of everything? Are you going to hire professional vacation rental cleaners to turn it over for you? Management companies can make the process easier, but they can also cost a pretty penny, cutting into your bottom line. Hiring an Airbnb cleaning service might be the more affordable way to go if you use a website like Turno to search for your Airbnb cleaners. Think about the logistics of how you plan to make it work, that will determine how much yearly income you can generate from your vacation rental.
Don’t Forget About the Little Extras…
By little extras, I mean towels, sheets, vacuum cleaners. Yes, vacuum cleaners. You would be surprised by the number of things that people can destroy in a vacation rental! I’ve had one, and cleaned many, it never ceased to amaze me what people were able to ruin, I literally found a few broccoli spears inside a vacuum canister once. That thing never worked the same. My point here is, consider these expenses when trying to calculate how much income you will make on your vacation rental, it also comes out of your bottom line. How many times you are turning over your rental and how many people it can accommodate will factor into how quickly you will wear things out.
Do your research! Vacation rentals can be a great way to invest if you play your cards right and research your options.
