Things to Consider Before Buying a Vacation Rental
Purchasing a second home can be a daunting task, even more so when you are thinking about buying not only a second home, but a vacation property that you would like to rent out to guests. Taking some time to consider some of the aspects that you may have overlooked can help to prepare you for the reality of renting out your vacation home.
Consider hiring help so you can fully enjoy your rental.
Time Investment
The operating costs of owning a vacation rental is just half of the investment that you need to consider with the purchase of a vacation property. Due to the nature of vacationers, you will likely have a high rate of guest turnover. This can require a good chunk of your time. In order to stay on top of the maintenance and repairs, One Frugal Girl recommends that owners of vacation rentals often spend an average of 10 hours per week working to ensure that their guests are happy, comfortable, and satisfied. This kind of time invested can help improve the odds of a repeat visit.
Financial Investments
The financial investments that go along with owning a vacation rental home extend beyond the initial purchase price of the property, as regular upkeep of the furniture, home repairs, and cleaning costs can quickly add up. Being prepared for these often-overlooked costs associated with purchasing and renting out a vacation property can help to reduce any unfortunate surprises down the road.
Furniture
While you may treat your furniture and household belongings with respect, a high turnover of guests can leave the furniture in your vacation rental property worn out. Although you may find it comfortable, guests most likely will not. As such, it is important to select furniture that is neutral to appease a variety of guests, while also being durable to stand up to a high flow of traffic. You will also want to keep the clientele in mind when selecting furniture. Does the couch look like it would be at home in a frat house? If that is the clientele that you are looking to attract, that should suffice. If you are looking to attract families to your vacation property, you may want to select more neutral and timeless styles to ensure that your guests are comfortable and feel at home.
Furniture costs extend past the price tag of a new couch, as guests will most likely want to use a television, DVD or Blu-ray player, and internet while they are visiting. These items can have a considerable impact on your budget, but if they are not in working order when your guests want to use them, you may lose out on repeat business. Sheets and linens should also be replaced before they become threadbare, with the bedding deep cleaned on a semi-annual basis to ensure that they are ready for guests.
Home Repairs
Along the lines of what is comfortable for you being different from the furniture that your guests will find comfortable, so are some of the small home repairs that may not bother you if you don’t complete them. Your guests will most likely be perturbed by peeling paint or outdated bathrooms. Again, this is a source of time, as well as financial costs that are associated with owning and renting out your vacation property.
Cleaning
If your vacation rental property is some distance from where your primary residence is located, it may not be feasible to make the trip to the property between guests, particularly if it is during the busy vacation season. As such, you may want to hire a cleaning service. But, beware, there is a cost associated with convenience. The folks over at Houselogic recommend adding up the number of bathrooms and bedrooms, then multiply it by $20 to calculate the cleaning fee associated with operating a vacation rental property.
Conclusion
As you can see, there are a lot of costs, in both time and money, associated with operating a vacation rental property. However, do not be discouraged if this sounds like a lot of responsibility, as property management companies like ourselves can handle many of these day-to-day, as well as maintenance emergencies, allowing you to enjoy the peace of mind that comes with trusting a company to tend to such responsibilities.
References
Evolve Vacation Rental Network. (n.d.). Vacation Rental 101: Housekeeping. Retrieved from www.blog.evolvevacationrental.com/vacation-rental-101-property-maintenance/
Houselogic. (2016, September 27). Maintain Your Vacation Home. Retrieved from http://www.houselogic.com/organize-maintain/home-maintenance-tips/maintain-your-vacation-home/
One Frugal Girl. (2010, March 27). The Real Cost of Owning a Vacation Rental Home. Retrieved from http://www.onefrugalgirl.com/2010/03/the-real-cost-of-owning-a-vacation-rental-home/
