Get Benefits and Make Money by investing in Vacation Rental Industry

Investing in vacation rentals industry can be an attractive business, provided you take it seriously and market it strategically. A key factor that can increase the business potential of your vacation property is location. A property that is located in a famous destination and is marketed well can help you pay for the expenses of maintaining the property, paying for the mortgage fee and also reap profits. And, of course, you can enjoy a paid-for holiday with your family, whenever you feel like.

invest in vacation home


Mentioned below are few success formulas that can help you make the most of your investment in a property.


1. Check your finances

Secure your financial position before you move further towards your dream of buying a house. See how much money you have. Though you can go for mortgage financing, be aware that many government mortgages such as FHA loans are only available to buyers purchasing a place which they would be using as a residence and not for those going for investment properties. You can also look for investors before you move any further.

2. Clarify the business potential of the area you are interested in buying a home

The best way to do so would be to take a vacation in the area. This way, you will be able to sense the real demand as well as the supply of vacation homes in the area. Visit one to get a feel of how many people are interesting in renting a vacation home and how much are the rents. Ideally you should go for a place which is located close to a popular destination such as a beach, a water park, etc and it should also be in close proximity to airport or railway station.

3. Make a cost-profit analysis

Make an assessment of the cost that would go in maintaining the property such as taxes, insurance, maintenance, cleaning and property management. Compare this cost with expected earnings. You can consider a 25% vacancy rate for the purpose of assessment. If your assessment shows profit, go for the property.

4. Make a strategy to market your vacation property

Spending little time on planning a marketing strategy and can help to make your vacation home reap profits. An effective strategy is to list the property in reputed vacation rental websites such as VacationCluster. Include an interesting detail and a few pictures of your property. You can also consider maintaining a website of your vacation property.

Here you can talk about your property in more detail, besides you can add a query form in the website to get direct response from visitors who search vacation accommodation online. Once you decide to sell off your vacation home you can also sell the website along with it. To increase the saleability and value of your property you can maintain a rental history, showing how attractive it is amongst the tourists.

Posted in Property Owners, Vacation Rentals. Bookmark the permalink.

  • How we can make money by investing in vacation rental industry? This question is arising in my mind when I had read this article on the web.

    • VacationCluster

      So, did you get your answer after read this article?

  • Suzanne, you raise an interesting question in the title of your article – but I don’t believe your article answers your own question. You give great hints of what to look for, but you have not told us how to make money by investing…

    • VacationCluster

      Bert, you can find information about how to save money or expenses on your home like taxes and other expenses, we are providing details about business area/vacation home spot. Which is more important for owner to get bookings and by that he will generate revenue. I believe all these points are not involve and enough for getting more money by vacation rentals. But it will gives you basic ideas about generating revenue and how to start up your business in vacation rentals industry.

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