Many individuals all over the world own second and even third homes. Sadly, many of those vacation residence owners do not get to use thier holiday retreat as frequently as they would like. Typically only a week out of the year and even less. Many homeowners contemplate whether or not to rent out there vacation residence to help off set expenses and in some cases even cover all costs of proudly owning a second home.
There are hundreds of thousands of people everywhere in the world that are prepared and ready to rent your little piece of paradise for a week or more, sometimes for several months at a time. As a general rule in the event you can rent your vacation residence anywhere from 12 – 15 weeks per year you can cover your mortgage and all related costs. Your vacation residence then turns into a profitable investment with the fringe advantage of you being able to use your stunning residence when it’s vacant, at no charge.
This type of arrangement is actually not for everybody and plenty of wealthy individuals favor to not go this route. But if your not among the mega wealthy this can be a great strategy to have a real estate investment, and as I said, free use. There are two extremely necessary factors to contemplate when owning such a property. Lets take a look at each.
The 1st factor to think about is place. For your investment to work it’s important to own property where individuals wish to go. Is your property located in Scottsdale Arizona or some isolated place in Central America? Of course you will be able to rent both but Scottsdale will definitely draw from a lot greater rental pool. Also take into account that most vacation houses are seasonal. Folks will gravitate to cool locations within the Summer season and warm locations within the winter. Of course there are exceptions to this such as ski homes within the Rocky Mountains where you could potentially have renters wanting your property 12 months out of the year. It ought to go without saying that you simply also have to own a 2nd residence in a place that you just wish to visit!
The other essential situation to contemplate is management. Your second home management firm can make or break you. Interview plenty of firms and definitely ask for referrals. Do ALL the analysis necessary before you appoint your firm. Ensure that your house will be advertised and managed professionally. Normally you will need a management firm that’s established and has a good track record with your sort of property. I am unable to emphasize this enough, it’s the distinction between a good vacation residence experience and a literal night mare.