Is Owning a Vacation Rental Property Right for You?
Here’s an interesting way for you to save money on travel… Own your own vacation property! While this might not be for the faint at heart, it’s definitely a viable possibility for some. Suppose I said you can enjoy a second home, in a great vacation spot, but instead of it costing you money to maintain, you can enjoy it and generate an income? Want to know how?
Obviously you need to be in a position to buy a vacation rental property to begin with.. If your finances won’t allow for it right now, let it be your savings focus for the future or consider buying with a partner(s).. There are many vacation worthy places that won’t break the bank. If you’ve ever watched Beachfront Bargain Hunt, you already have an idea of some of the low cost, amazing vacation rentals available. http://www.hgtv.com/shows/beachfront-bargain-hunt
Sunrise, North Topsail Beach, North Carolina
My husband and I purchased a condo on North Topsail Beach, North Carolina about five years ago. Located right on the beach, it has a magnificent 180 degree view. I’ve never found a hotel with a better view (still looking though..)! Much better than that, it was a lot less $$ than I had ever imagined it might be. We enjoy it most of the year but over the summer we rent to vacationers. It pays the bills for the entire year, plus some. (To use a phrase from Big Daddy, ‘it wipes it’s own #@%.) I took this picture from our balcony early one morning. I was in awe. Unimpressed, my husband said, “yay, looks like that almost every morning”. Who knew? I am sooo not a morning person.
Back to generating income.. There are many websites available to market your vacation rental property. For $349/ year, I am able to find renters, schedule, receive and track payments, etc… You can check out our rental at www.homeaway.com, put in the search ‘377065’. There is also www.vrbo.com, www.airbnb.com and others popping up every day.
Afraid of damage? You can have your renters pay for an insurance policy. You need to have them give a cash deposit as well. When the insurance first came out, I stopped taking a cash deposit, I used the insurance about 10 times over that summer. Now I make them pay for a policy and give cash. I haven’t needed the insurance in about 3 years. Moral of the story: As long as you take a cash deposit and they have some ‘skin in the game’, you’ll be surprised how well they take care of your vacation rental property.
Notes: I suggest a condominium if you are purchasing out of state as it is much easier to maintain. Go over the budget carefully. Know what your costs are going to be (including cleaning fees, credit card fee, supplies, homeowner’s association, etc…) and what the current rentals are going for. Make sure it makes sense. Ensure the by-laws allow vacation rentals and check the timeframe as some won’t allow weekly rentals. You will need a cleaning service, a handyman, etc.. Email me through the Comment if you have questions.
Make your place the kind of vacation property you would choose to rent! If you like this post, please share it!! Thank you!
