For some, it’s a dream to work from home. But once you finally get your remote job, you might be surprised to learn that kicking back on the couch isn’t going to get the job done. Having
A Guide to Finding and Buying a Vacation Rental Property
Dated: January 29 2021
A vacation rental is a fantastic source of passive income, allowing you to collect rent with minimal effort. That said, getting your vacation rental set up will require time, effort, and financial investment.
First, you want to find a suitable property in a location that is attractive to tourists — there's no point buying a place in a location that nobody ever visits. Kathleen Comerford can help you find the right property in Sarasota and its surroundings.
That said, there are many other fantastic locations making for lucrative vacation rental opportunities. From Florida beachfront properties to quaint Colorado cabins, your rental property options span the country. The below guide explains how you can find and buy the perfect vacation rental in your preferred area.
Research the right location.
The first step to buying a vacation rental property is to decide on a location. Geographic appeal is a major consideration. You want a property that is close to tourist attractions or metropolitan areas frequented by visitors. Also, make sure to look at different neighborhoods. Factors to keep in mind are safety, proximity to utilities like supermarkets and restaurants, and connections to public transportation.
Indeed, in order to find the best rental property in a given area, you have to be motivated to research your market. Getting in touch with real estate professionals will help you find the best areas to look at. Those same people can also provide you with leads when you are looking for new opportunities. Finding a place that is within your budget but also one that is attractive inside and out is paramount. Focusing on the right decor and a sorted curb appeal will keep renters coming back to this property for years to come.
Estimate how much you stand to make.
In addition to considering the attractiveness of the location, you also need to factor in cost. How much can you afford to invest in a vacation rental property? Do your research online to gauge what you'll have to spend. Keep in mind that you'll have to make a down payment of at least 20% if you want to secure a favorable mortgage with a low interest rate.
Based on how much you spend on the property and how high the mortgage will be, you can calculate how much you'll have to charge in rent to turn a profit. Ideally, the money you make from rent will cover the cost of the mortgage and leave a little something over for you to pocket. Keep in mind that rental income is taxable. However, you can write off related expenses, such as advertising costs. The Internal Revenue Service has the details. Furthermore, it can also be worth registering as a Florida LLC to enjoy other tax perks and limited personal liability.
Upgrade your property to make it more attractive to renters.
You want to make your real estate as attractive to visitors as possible, especially in a competitive market. Take care of the basics first. If there are issues like broken windows, get them fixed. Look up how much you can expect to spend online. Beyond basic repairs, make your property more attractive by adding touches like free WiFi, a well-equipped kitchen, and fun amenities like bikes and a fireplace.
Finding, buying, and creating the perfect rental property takes time, so don't expect this to be a job that you can finish overnight. The effort will be well worth it, however. It's better to do your research and thoroughly prepare a property that will attract visitors and increase your profits. There's no point investing in real estate that will stand empty and serve as a financial drain. So if you’re ready to take the leap, contact Kathleen of Iconpremiumrealty.com today. 941-586-3229
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