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.
|1. Check your finances|
|2. Clarify the business potential of the area you are interested in buying a home|
|3. Make a cost-profit analysis|
|4. Make a strategy to market your vacation property|
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.
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.
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.
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.