Turning your latest auction property purchase into a vacation home can be an exciting investment. While the property may initially be a source of relaxation for your family and friends, it can also serve as a stream of passive income if you open it up to renters. Here’s what you need to know to effectively purchase and market your vacation rental:
1. Research, Locations and Rates
If you don’t have your heart set on a certain location, do some research about the rental prices in popular vacation areas. For properties being marketed on Hubzu, you can find rental estimates provided by RentRange. Another way to research rates is by visiting rental property e-commerce websites. This allows you to better evaluate rental rates and the investment potential of a vacation home in the area.
2. Consider Seasonality
Certain areas, such as those in milder climates, can attract renters year-round while other locations have peak seasons. When researching local rental rates, consider the potential for fluctuating demand based on different times of year. By taking a look at property rental rates throughout the year, you’ll get a more accurate picture of your vacation home’s potential.
3. Calculate All Expenses
Keep in mind that buying a property you plan to convert into a vacation rental isn’t just about the initial purchase price. You also need to take into account the additional expenses required to help you maintain or market the property. Consider the cost of cleaning your rental and managing it during off-peak vacancy when setting a price. When marketing a rental property, include the cleaning fee in the rental cost to avoid additional charges at the end of the booking.
4. Boost Your Property’s Appeal
When assessing the value of a vacation rental, list events and attractions nearby the property. This information can be used for marketing purposes and can also be shared with prospective renters.
If you are looking at investment opportunities in a hot market where there is plenty of supply, you might need to do a little more to help your vacation rental stand out. You can add perks as part of the rental package, but remember to include this expense in your evaluation of the property’s potential.
5. Invest Time Into Handling Inquiries
Renting your property takes work, so be sure to include that time in your assessment of a rental property. If you don’t have time to manage it or handle inquiries, consider hiring a property management firm that will do the job for you in exchange for a percentage of the rent. When it comes to successfully renting a vacation home, accessibility and frequent communication is where the rubber meets the road. If prospective tenants don’t hear from you, they may take their inquiries and business elsewhere.
A vacation rental property can provide extra income, so it’s important to choose the right location and invest time and thought into your marketing tactics. Keep in mind that while you’re the owner of the property, you’ll want your guests to feel like they’re at home.
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