Deciding to rent out your second home is an important decision that can help you earn extra income or pay off your mortgage. Although turning your home into a vacation rental is a great decision, it is also a lot of hard work. Perfecting these tips can produce solid returns on your Beach House Vacation Rental. Here’s what you need to know to become a successful landlord:
People expect a high-end experience when they book a vacation rental. Gone are the days when you could get away with providing just a few beach chairs and umbrellas – people want a full experience. Think Wi-Fi, luxury linens, and dishware, or an in-ground pool. Pools are expensive but the cost can be recouped by charging significantly higher prices.
Consider your audience and plan accordingly; does your tenant have needs that you can meet – and charge for? If you're gearing your rental towards families, then think of kids. Do you have a yard, but not enough grass? Consider installing a lawn; you can easily recoup the costs by charging several thousand more for the next popular rental season; enhancing both your ROI and the popularity of your rental.
If you want to maximize your rental income, then definitely rent during the high season. In the Caribbean, that means Christmas, New Year’s and spring break. In U.S. coastal areas, that means Memorial Day through Labor Day. Owners who rent during the high season are able to carry their costs for the year, and in some instances even generate a profit.
Just because you’re renting your home doesn’t mean that your private life has to be on display to your guests. To ease your worries, stow away personal items such as photos, clothes, and valuables. Anything that you want to keep away, such as the silver set or your child’s favorite toys, should be secured. If you have a large home, designate basement bins for every family member or a locked closet on each floor for private storage.
For property owners who want someone other than themselves to keep an eye out for their property, consider using a property manager. Property managers list with multiple marketing sites for maximum exposure. Moreover, they can take the hassle out of renting. If you do not want to use a management company, reach a wide audience of potential tenants on your own, and skip the expensive fees directly by listing affordably with HomeEscape.com. Take advantage of social media marketing and listing sites like HomeEscape that do not charge booking or processing fees.
In addition to deducting your broker’s commission, there are other tax incentives that you can utilize for your benefit. If you use your home fewer than 15 days a year, it is considered a rental-only income property and is eligible for several deductions; including utilities condo fees, housekeeping, and repairs.
Call your insurer and explain that you will be renting your vacation home. “If you don’t, your claims may be deemed uninsurable,” warns Christine Karpinsky, author of How to Rent Vacation Properties By Owner (Kinney Pollack Press). Ask about adding a renter’s liability rider to your homeowner’s policy. If a tenant becomes injured on your property and sues you, the rider can protect your financial assets, and these policies are generally affordable.
With more and more rental competition, it is important to give guests a lasting impression of your home. Think about welcome packs: a bottle of wine, a gourmet cheese set, or even a ‘guide’ to the home or local area. Giving guests an inside scoop on the oddities of your home or the timing of the garden blooms makes your vacation rental become more desirable for prospective tenants. Do the legwork now and reap the benefits for years to come!
