Buying a home for a vacation rental sounds like a great idea. Not only can you have a location for you to visit, but you can make extra income on a vacation rental. There are a few items to think about when heading to purchase this home.
Location to activities that vacationers want
Really research the area you are looking at purchasing a home for renting. You will want a home that vacationers are interested in. The best way to ensure this is to buy a home in a location where lots of people vacation. Buying a remote home can also be a hit for vacationers but do your research on how many people come to an area and what you can expect as far as the number of renters. You want to rent out as easily and often as possible, so you don’t have a sitting investment. Make sure it’s close to activities, food stores, restaurants, and drug stores if you want a home that is convenient for a renter.
Enough rooms to fit multiple people if needed
Most times, people rent a home for vacation because the cost of a hotel for multiple people or families can be outrageous. They would rather rent a home, cook their own food, and have a home away from home when on vacation. Because of this, a home with more than two rooms will rent easier than a home with just one. The only time this is not the case is when you are purchasing a small home or condo in a weekend getaway location. Know your potential client and plan for them.
Along with rooms, you will want to make sure you have full bathrooms. Have one of those bathrooms include a tub. When there are multiple families, there are usually people of all ages and sometimes friends staying together. Having multiple bathrooms will make their stay more comfortable for them. Having a tub is great for young children or people who can’t stand to shower.
Look for a home with working quality appliances or know you have to upgrade them on the purchase. Vacationers don’t want the hassle of faulty old appliances. They want things to work. They don’t have to be the most high-end option, but they have to work. A nice fridge, microwave, and over goes a long way.
Make sure you are looking for this home in a safe area. You want your investment to last a long time and be safe for your vacationers and for you and your belongings. Check out the area and really understand how safe it is, especially at night.
Make your home unique
Do you have a fence in the yard? Do you allow pets?
Many people want to bring their pets with them on their vacation. This is also a more in-demand home for vacationers. Make this easy for them and have a dog-friendly yard and home. When you purchase the home, add dog bowls, a dog kennel, and a dog bed. Make removal of waste easy as well. Fences in yards are also a bonus for young children. Many parents will love having a yard they feel safe in. A pool, patio, or place to enjoy is also a great way to make your home unique. Look for these items. If you do have a pool make sure the home you look to purchase also has a pool fence.
Just like buying your own home, you want to know that you are buying an investment that will continue to increase over time. Know the market and the projected market values.
If the home is new, look at what you would have to add to make the home optimal for renting. If it is older, calculate the costs of renovation before deciding on the purchase.
Make sure the local internet, plumbing, and electrical work in the home before purchasing. Having faulting plumbing or electrical will be a hard fix.
Look at your parking situation for your rental. You may need more than one parking space for multiple cars. Is it in a garage, is it tall enough for a van, does it cost extra? Make sure the parking situation is easy for your guests.
Vacationers want to be safe and feel like they are in a nice quiet neighborhood. Check out the feel of the other homes in the area. Maybe it’s a location with lots of renters, or it’s a place where people live year-round. Know the town or city well.
How much extra work will it be
You need to analyze the pros and cons of this home you will purchase. You may want to have a property manager manage the day-to-day for your home. They are also great for when a home has issues and needs something fixed. You probably can’t be there at every emergency, so have a plan when things go wrong so that they are taken care of quickly.