Six Tips for Buying a Short Term Vacation Rental Property

Dated: 05/11/2019

Views: 261

Considering buying an investment property?  Have you thought of jumping into the vacation rental business?  Here are some tips to help you with your research.

Tip 1:  How will you be paying for your investment property?  Will you be using CASH or a MORTGAGE?  Using a mortgage will free up your capital to make improvements and or repairs to the home.  Make sure to consult with a mortgage lender and consider all your options.

Tip 2:  Choose a location.  The best location is one that attracts tourists.  For instance, here in San Antonio, neighborhoods that are close to downtown and the river walk are perfect areas for vacation rental properties.  These homes tend to stay occupied and will produce the most rental income.

Tip 3:  Calculate your revenue and expenses.  You will need to know the rental rates for the area and what your property could potentially rent for.  You will also need to factor in monthly expenses and other fees associated with maintaing the property.  For example, are there HOA fees?  What are the monthly utilities?Don’t forget, the home may have days it is not occupied.  You will want to factor in the vacancy rate too.

Tip 4:  Decide if you will be managing the property yourself or will you hire a management company.  Managing the home on your own can save you the management fee, but you will want to make yourself available for calls should something come up while a short-term tenant is at the home.  Be prepared for issues ahead of time.  Have names and numbers of contractors ready at all times.

Tip 5:  Decide on the type of property you will be buying.  Will you invest in a condominium, a single-family home, or a multifamily property like a duplex?  Multiple units tend to bring more rental income. With this in mind, you should streamline management of the properties.

Tip 6:  List with VRBO and AirBNB for a small fee.  The best way to keep your property rented, is to list with the largest short term rental sites.  

In conclusion, buying a vacation rental home can be an awesome way to earn income.  Not to mention, if you love the city it is in, then you can use the home when it is not occupied.  Don’t forget, the home may be vacant for a number, which is the biggest factor to consider.

(210)389-4715

janet.sahouses.com

 

 

 Janet Wingrove has been a licensed realtor in the State of Texas since 2007 and has been selling real estate in San Antonio ever since.  "My #1 goal is to help you achieve your real estate dreams!" - Janet

 

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