How To Evaluate A Property As A Potential Vacation Rental
Posted on: 28 October 2016
If you are a real estate investor looking for the hottest trends, you may have encountered people who make a lot of money by renting their home as a vacation rental. This can be a great investment, but there are a few things that you should look for when you buy property to guarantee you're getting a good deal.
What Are the Local Laws?
Before you start looking at vacation rentals in the neighborhood, be sure that you consult the local codes to see what kinds of regulations and taxes apply. The municipality might require you to get a special permit as a bed and breakfast, which would require a lot of red tape. They may also want you to have a business license and pay taxes on your vacation rental income. Check to see what levels of expenses you would have before deciding that it's a good investment.
How Many Bedrooms Can You Get?
Another thing to look at is how many people could fit comfortably in the space. You'll be able to charge a higher rate if you could host an entire group of people or a family. If you only have a few bedrooms in the house now, consider if you could split up some of the common space to make more bedrooms.
What Are the Neighbors Like?
Your neighbors could affect the success of your vacation rental greatly. You may want to meet the neighbors and discuss your plans before buying the home. You might think that you don't want to let them know what you're up to, but if you want until later and they're a pain to deal with, it can really kill the joy of being a homeowner.
How Updated Are the Appliances?
Your potential renters aren't going to care that your real estate is in an up and coming area. They will want to know that they are going to have a comfortable stay. This means having updated appliances, clean finishes, and general household upkeep.
Can You Add Special Amenities?
A pool, hot tub, or even a patio could add a lot of appeal and help your rental listing stand out. See if you have the space and budget to expand your home's value before renting it out.
How Is Parking?
Vacation renters will want to know that they have a comfortable place to stay, and that includes stress-free parking. Offering a parking spot to renters is a great touch.
Work with a company like Coldwell Banker George Realty to find the perfect home to rent out.
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