Buying a vacation rental is one way to help attain financial freedom, providing a steady income stream you can collect with little effort. However, real estate is a major investment, so you want to be smart when making this move. Dream Home Estate can help you find a fitting property—and even manage tasks like advertising it for you. However, finding a fitting house or apartment is only the first step. Here’s how to set up a successful vacation rental.
Choose an appropriate location
Your vacation rental needs to be located in an area that’s attractive to visitors. It could be a major city with plenty of tourist attractions, for example, or a picturesque beachside location that’s great for a holiday filled with surf and sand. MSN provides a roundup of promising locations for future vacation rentals, from the Poconos in Pennsylvania to Surfside Beach in Texas, Gulf Shores in Alabama, and Waldport in Oregon. There are options from coast to coast.
Know what characteristics make for a great vacation rental
Certain traits make a house ideal for a vacation rental. Attractive features include multiple entrances and a comprehensive kitchen since many people choose rentals so they can cook for themselves. Note that you may not find the perfect vacation rental as-is. For example, you may find a house that’s in a great location but needs some renovations. When upgrading a property, consider your target audience and what perks they’ll appreciate.
Figure out how to finance your property
The real estate market is highly competitive and it’s important to be prepared. Getting preapproved for a mortgage can help you stand out in a crowded marketplace, for example. To fund your vacation home purchase, you might consider refinancing the house you already own. You can cash out equity and use this to pay for your new property. Loan Factory provides tips to help you determine the answer if you’re wondering “Should I refinance my house?“
Take the final steps to close the deal
Before you can conclude the purchase of your home, there are a few important steps to take. You should always get a home inspection done, for instance. In this process, a third party comes and assesses the property, looking for issues that could make it livable or detract from its value. Before sealing the deal, also make sure to negotiate closing costs. Mashvisor provides tips for negotiating a successful deal when purchasing property.
Get your vacation rental ready for its first tenants
Once the house is firmly in your possession, it’s time to get it ready for renting. First, take care of obvious repairs like broken windows or defunct appliances. Then, address supervision issues—like adding a fresh coat of paint to the walls. Finally, think about what extra touches you can incorporate to up your rentals’ appeal. Coveted amenities include things like a washing machine, wifi, TV, free parking, and a coffee maker.
Advertise your property to start making money
Once your vacation rental is ready for guests, it’s time to find renters. Start by taking fantastic photos of your property, highlighting all its best assets. Ideally, pay a professional to take the shots to ensure top-quality results. You’ll then need to write an accurate and compelling description. Pure Travel provides additional ideas for marketing vacation rentals, from leveraging search engine optimization to using local partnerships.
An investment property can be a fantastic source of passive income—if it’s set up correctly. Trust the guide above to help you get off on the right foot.
Want to learn more about vacation rentals and how to make them sell? Check out the Dream Home Estate blog.
-Paul Denikin-
