Are you one of the millions of homeowners who are in need of extra income to help cover the increasing cost of maintaining your property? If so, you’re probably agonizing over whether or not you should rent out your vacation home. Not sure what to expect? It can be scary to think of renters using your home unless you take the necessary steps to help prevent bad experiences.
You might be considering renting out a spare room in your property while you’re living there or maybe renting your entire home while you’re on vacation yourself. As with various investments, there are pros and cons of renting out your vacation home. To understand if renting your vacation home is right for you, it is necessary to study some of the main pros and cons and evaluate their impact on your life. The vacation home market is flourishing, and you could be a part of that boom with the right level of due diligence.
PROS
FINANCIAL
The clearest benefit of renting out your property as a vacation home is that you’ll be able to use it to generate income for your family. Any periods of time where the home is not in use could instead be used to turn a profit, which suddenly makes your property into a handy little money earner.
THE LOCAL EXPERIENCE
Many vacationers are looking for advice and recommendations for experiencing and enjoying the local culture that your vacation home exists. So if you have a passion for the people, businesses, and overall culture that surrounds your home, then renting a vacation home can be the perfect way to help turn people’s attention to the things that you care about most. It allows you to offer a personal touch that visitors will not usually get in a hotel, which also means that they’re more inclined to visit again or recommend you to their friends.
RENOVATIONS
With the extra financial freedom that comes with earning from your property while you’re not using it, you’ll be able to carry out work on the home with money that you don’t have to earmark for the mortgage. As such, it is an excellent short-term solution if you need to remodel the bathroom or kitchen but can’t think how you’re going to raise the funds.
CONS
WEAR AND TEAR
You’ll be placing your property in the hands of other people, which mean that there is a chance that they may not care about the items in your home as much as you do. As such, there is the possibility that something you care about could end up getting damaged or the person renting the home simply doesn’t take care of it like they should.
Well, some vacation property management firms specialize in vacation home rentals, and they screen potential renters thoroughly. You can also adjust your property insurance to cover any theft, damages, etc. Vacation homes including cabins, condos, and even apartment units are accepted for management. A vacation property management firm will find and screen tenants, do all the advertising, collect the rents, handle maintenance and repairs at a lower cost than you probably could (this is because they have their maintenance people on contract).
YOUR HOME IS BOOKED OUT
There are occasions you may need to use your property, but to discover you’ve already booked it out. Suddenly appearing and doing what you want to do may not be an option, as the people renting the property are expecting to be able to use it as their own for the duration of their holiday, so be sure to consider this and block the dates you want as soon as possible.
If a vacation property management firm is supervising the daily management of your vacation home property and guests, you’ll have fewer commitments and complications to worry about. If more time and less stress are essential to your quality of life, a property management firm can be a great asset.
TIME CONSUMING
Renting your home out to those going on vacation can almost feel like a second job at times, as you’ll need to be able to keep track of who has booked the property, when the cleaners are coming, what time they are checking in or out, in addition to collecting money and sorting out the relevant tax and licensing information. It can end up being a lot more work than it would first appear to be.
When you hire a vacation property management firm to take care of your vacation home, you’ll get your life back. These professionals are there to handle everything, so you don’t have to worry anymore. Sounds great, doesn’t it?
IN CONCLUSION
The short-term accommodation market, such as Airbnb continues to boom as vacationers seek unique experiences. Families are very interested in the space and comfort compared to hotel offerings. Your vacation home can provide them that alternative while concurrently offering you an opportunity to benefit from your property and write off interest on the mortgage and other expenses.
The value for vacation homes is increasing and many locations. By carefully studying the pros and cons, you’ll be able to judge whether or not this is a workable solution for you. Many people who have made the bold move find it to be a rewarding investment, especially if they’ve done their research upfront and knew what to expect. If it’s done right then, a vacation rental property can be a solid investment and can help diversify your investment portfolio.
Property management firms such as Minnestay are there to manage your vacation homes, so if your vacation home is getting out of hand, it will benefit you to hire a professional to help. These professionals understand all it takes to handle vacation homes, which ensures that you’ll receive the most out of your property without much stress. And now that you’ve all that free time, you can use your leasing gains to take that perfect vacation you’ve always dreamt of.
Contact Minnestay today to learn more about the money you can earn by letting us help you rent out your vacation home.
