Today’s real estate market makes investing not only lucrative but also profitable. One thing you might not have thought of is owning a vacation rental. It offers the best of both worlds by helping you generate residual income while offering the freedom to enjoy a getaway spot of your own.
Vacation rentals are a wise investment. Depending on how often you rent them out, as income properties, they can pay for themselves and more—mortgage, utilities, and property taxes. You can charge more per night than what you would earn for a rental property. In a week you could bring in as much as you would in an entire month from a full-time rental. And you’d still have time to use the home yourself.
How will you Promote your Vacation Rental?
Check with local real estate agencies. In some communities, especially those in areas with high likelihood of tourism, real estate agencies also manage vacation properties. You can also advertise your property on Craig’s List or with the local Chamber of commerce. Many communities also have private websites that cater to visitors. Some have directories in which you can advertise your vacation rental for a low rate.
Regardless of what area of real estate you invest in, now is the time to learn more about real estate investment. Knowledge can mean the difference between business success and stagnation.
If you want to rely on more than your own marketing efforts to promote your property, online resource directories such as Air B&B or similar companies will send referrals to you. You pay a small commission when people book through them, but it’s likely business you would never have gotten on your own.
If you don’t plan to use the property yourself, there are benefits to leasing a property on a long-term basis. Have you heard the old adage: a bird in the hand is better than two in the bush? Leasing on a six-month or twelve-month lease agreement will guarantee rental income over a long period of time. You’ll make less if you break it down per day, but at least you’ll know what you have coming in. There are no guarantees with vacation rentals.
If you’re not interested in managing a vacation property but want to take advantage of the great deals on the market, there are other options.
Depending on your preference, there are several ways to generate revenue buying and selling properties. If you prefer flipping, opportunities abound: know what to look for, how much you want to spend and what the ROI (return on investment) is before you open your checkbook.
If you’d rather middleman deals by selling contracts, you won’t even have your hands on the property long enough to get dirt under nails. Many investors build successful businesses by engaging exclusively in selling contracts.
Regardless of what area of real estate you invest in—whether you buy properties as vacation rentals, flip or sell contracts, now is the time to learn more about real estate investment. Knowledge can mean the difference between business success and stagnation.