Real estate has always been an attractive yet mythical beast when it comes to safe investing. There is competition, but there are so many different kinds of real estate investing that there is enough to go around. But one of the best ways to make money in real estate is the vacation rental. A lot of that is due to property management companies and the expert help they give. You may be asking yourself, “should I invest in vacation rental property?” In this article, we’ll find out why the answer to that is a definite “yes!”
Vacation Rentals vs Hotels
Vacationers in the past used to accept that they were going to stay in a tiny, cramped hotel room with no home-away-from-home amenities. Over time, companies began looking for long-term rentals for their traveling employees. But what to do with the property between corporate visits? Rent them out to vacationers, of course.
Because the popularity of vacation homes is growing, many people are buying them as their first investments. It’s easy because you would be basically purchasing a second home and just renting it out between your visits.
A vacation rental is a great way to be near your college student, aging relatives or have a more pleasant environment during winter weather in your home town.
What you’re looking for is positive cash flow, like any other investor. If you choose an attractive property and a highly rated management company, you have a much better chance of having that cash flow sooner. Although this will not guarantee that you’ll cross the break-even point quickly, it will help ensure that it happens.
The location can make all the difference, too. If you like to visit the beach during the winter months, for example, you might choose a property in Florida and stay there yourself for a week or two and rent it out the rest of the time. You may like to avoid the hot Florida summers, so you’d rent it out to vacationers. With that in mind, you do well to choose a property near the theme parks, water sports havens, or other vacation draws that Florida offers.
As you can see, owning a vacation rental can be a great way to start your real estate portfolio. It can also make it possible for you to have a second home-away-from-home in an area that would benefit you. A top-notch vacation rental property manager can make details like cleaning and maintenance, finding renters, automating check-in/check-out, and keeping track of income and expenses more manageable. Take your time to find the best one for your needs.