Quicken Loans - The Easiest Way To Get A Home Loan

facebook Twitter RSS

Home > Real Estate Investment > Investing in Vacation Home Rentals

Investing in Vacation Home Rentals All you need to know

Are you interested in owning a second home? How about a vacation home? When you invest in a vacation home you can. Investing in vacation home rental not only allow you to stay at the property as often as you would like but it is also a great real estate investment. Many investors found that invest in vacation homes can be much more profitable than other investing methods such as foreclosure investing. In order to be successful when investing in a vacation home rental, you need to know some of the vacation home buying tips.

Vacation Home Buying Tips

1. Determine the vacation home budget
When you buy a vacation home, make sure that you do not overextend your budget. You never want to make a purchase that you cannot afford. By determining your budget, you will be able to set a limit on how much money you can spend. In turn, this will allow you to find the properties that best your financial needs.

2. Find a quality vacation home
Keep in mind that vacation home rentals are very competitive. In order to make money to put towards your mortgage, you will have to ensure you can rent out your vacation home property easily. You will face with stiff competition if your property is in a popular part of the country. So buying a quality vacation home rental is extremely important. In addition, upkeep on the property will go a long way as far as finding somebody to rent the property on a consistent basis is concerned.

3. Determine how much and how often you can rent your vacation home
When buying vacation home rentals as investment properties you must remember that you have to pay your mortgage each month. Unlike your primary residence, the rentals from your vacation home can go towards your mortgage. Essentially, you will never have to pay for your mortgage out of your own pocket if you can rent out your vacation home for more than your monthly mortgage payment. Therefore, it is important to research the vacation home to determine how much money and how often you can rent it for. Knowing this information will allow you to calculate on how many weeks a year you will need to rent the property in order to pay your mortgage. The best way to determine the price that vacation rentals are being rented for is by looking into similar properties in the area. Doing so will help you to get a good idea as to how much you should charge. Alternatively, you can consult real estate agents in the area how much vacation rentals are going for. They should be able to give you the most accurate number on how much vacation rentals are running at the moment.

4. Decide on the features of vacation home
A vacation home is not one that you will live in year round. Therefore, you should never be looking for features that you would like in a home. Whereas, you should focus on features that people who rent vacation homes would like. This usually includes things such as an eat in kitchen; pull out couches, and proximity to main attractions such as the beach or nature park.

Where to List your Vacation Home Rental

Nobody will know that your vacation home can be rented if you do not advertise in the proper places. Fortunately, there are various available options to list your vacation home rental that have been proven to be very effective.

The first option that most people exercise is contacting a real estate vacation rental agency that can handle the entire process for them. Even though you will have to pay a fee, but you will greatly increase your chances of renting your vacation home throughout the entire year. When dealing with a real estate vacation rental agency, you will never have to get involved with the people that are going to be renting your vacation home. For many people, this is reason enough to use the service that a real estate vacation rental agency has to offer.

For whatever reason that if you do not want to engage a real estate agency, you can always list your vacation home yourself. There are number of different places where you can list your vacation home for rent.

1. List in the Newspaper
List your vacation home in the newspaper will help you to reach a wide audience for a small amount of money. The problem is that more and more people have stopped reading the newspaper due to the advent of the internet. Besides, you will not be presenting your vacation home to people who may be coming from out of state.

2. Online Listing
You can list your vacation home online at many websites that provide vacation home listing service. Listing online has not geographical limitation and will increase the exposure of your vacation home to people all around the country. Moreover, you can list out all of the features of the property as well as the price in order to weed out uninterested parties. We highly recommend HomeAway Network , a network of four online vacation home listing websites where your vacation home rental can reach more than 25 million travelers.

3. Use 'For Rent' Sign
Of course, the old fashion way of using a "For Rent" sign may also get the job done without having to pay any money except for the sign itself. But this method has become almost obsolete as you will not reach a lot of people except those that drive by your property who actually see the sign.

Many people have found that investing in vacation home rentals can do more than allow them to have a second home and generate an additional stream of income. If you know the details of renting out vacation properties you should not have any problems making enough money to cover your second mortgage!

Featured Resource
Advertise your property to 25 million travelers.

The HomeAway Network

The HomeAway Network is a group of leading vacation rental websites. At HomeAway, they have the resources and skills of leading industry experts to provide you the most cost effective way to market your vacation rental property.

The HomeAway Network maximizes your exposure with more than 30 million travelers visiting the site each year. Click here to find out more!

Featured Resource


Buy House and Sell House Fast Back to Buy House and Sell House Fast

Home  ::  Home Buying  ::  Home Selling  ::  Home Mortgage  ::  Real Estate Investor  ::  Foreclosure  ::  Real Estate Service 

Bookmark Us  ::  Submit URL  ::  Resources  ::  Terms of Use  ::  Privacy Policy  ::  Site Map  ::  Contact Us 

Copyright © 2005 - 2018 All Rights Reserved.