Investing in Vacation Rental Properties

Nowadays, many people are investing in real estate business as the investment in real estate has become one of the prime ways to build wealth. Vacation rental properties are a special subset of real estate investment.


From recent years, more and more people are going for vacations in different places, where they take some kind of rooms, condos or villas on rent. They are in constant search for these places for spending quality time with their family and friends.

No doubt, the vacation rental property is a profitable business. They often serve the dual use of personal use in a location that the owner desires like Beach, Mountains etc. and to rent it out to other people. The full-time rental properties are a stream of income and tax deductions.

Rental properties can either be managed by the owner or by a rental management company. The rental management companies normally charge 30-40%.therefore, if you have a time so can also invest in properties.

Here are some things to consider when looking at vacation home:


Investment in real estate business is not a cake walk. In real estate business, you can’t be able to sell a home for a profit, especially in your first few years of ownership. Take time to review your finances and determine what your budget is for your future property.

2. Research before you buy property:

It’s a good idea to visit the area in which you plan to buy the property for business. Do some research on a particular area like- is there beautiful beaches, but as winter approaches, the area may be plagued by the smell of fish.

3. Location:

Most of the people will not enjoy tracking on road. Therefore, they look for vacation homes after parking their cars as they don’t want to get in the car again. They want to walk on beaches; the people want to see facing houses in vacations. These kinds of properties generally cost more, but they make better rentals.

4. Factor in extra costs:

From the rental property, you’ll have to cover insurance, taxes, utility, and maintenance costs. In mountain and beach areas, wind, salt, sand and ice can raise a home’s maintenance costs substantially. The beach houses need to be painted every two or three years.

5. Know all the rules:

Not all homes can be used as rental property. Homeowner association may set rules for rentals properties. If you plan to rent out your property, it’s important to research all rules before you buy.

You can also read this article –


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s