How To Start A Vacation Rental Property
Considering an investment property and owning a vacation rental?
Starting a rental property is a great idea to earn some extra income by renting out your property when it's not in use. The revenue from having a rental is quickly growing each year with short time rental properties bringing in an average of around $56,000 at the end of last year for a single family home. Looking for a place to invest in is the first step and finding someone to help manage it is next. Beachside Getaway is happy to help with all of your rental property needs, so here’s some tips on how to get the rental ball rolling.
You’ll want to start by calculating what your total expenditure should be on this endeavor. Go from what the new property will cost you, along with bills, property taxes, and all other miscellaneous items such as; furniture, kitchen appliances, and other house necessities. If you’re looking to have a manager such as Beachside Getaway help, then you should also add in those costs as well. Making sure that surplus funds are available for repairs or extra costs is important when setting in your budget, so be sure to always have some wiggle room.
This seems like a no-brainer but if you’ve never rented out a place in areas such as Hilton Head Island, then knowing where the nightlife or big tourist destinations are can be tricky. As a general rule of thumb, choosing a place near the beach or close to walkable towns is a smart choice. Beachside Getaway can answer hotspot questions if you’re looking to take them on in managing your property.
Look into the area you’ve chosen, and make sure to read their HOA laws and general renting laws. See if there’s a limit for the number of occupants you can host or a minimum amount of people required to rent and go from there.As stated above, renting out vacation properties can definitely bring a big amount of return in your finances, but make sure to set realistic goals and expectations, while corresponding intake versus output. For example, when renting, it's smart to figure out a ballpark of what you’ll take in, and compare it to what your expenditure is. If your estimated revenue is $800-$1,000 a month for short term renting, then what does it cost for you to run on a monthly basis?
Bearing in mind what you know about the area you want to rent in, the market of your area, and the HOA/renting laws, start to find the place that suits your needs as a renter. Real estate agents in the area can give you more hotspot information, or HOA laws relevant to the area you’re looking at.
This is the time to be looking to Beachside Getaway to help you out if you so choose. This will take a lot of guesswork out in trying to push your rental property out on different apps or sites, and will reach a larger audience of people trying to vacation. Booking on their website is a lot easier for potential renters too!
Figure out what licenses or permits you need in your rental area and get started obtaining those. Make sure your property is up to code and you have the appropriate permissions to be renting this space out.
Hopefully these tips shed a little light on how to get your property up and running, and for all managing needs, contact Beachside Getaway to take a little bit of your shoulders!