Did you know that more and more Americans are preparing to travel in the wake of the coronavirus pandemic? That means the demand for lodging, whether it be rental homes, traditional hotels, or shared housing, has gone up drastically.
Now might be the perfect time to invest in vacation houses. If you want to see for yourself, find a mortgage affordability calculator online and plug in a few scenarios as an example. Want to go a step further and learn how to start a vacation rental? Here is a handy guide to the process so you know what to do to get your first vacation home on the market.
Evaluate the Current Real Estate Market
Before you purchase your first vacation rental, you need to look at the real estate market in your area. You may want to wait until it is a buyer’s market when more people want to sell their homes. That way, you can get a cheaper price and pay off your investment more quickly.
Find a Great Property
When you’re buying a vacation rental property, you need to consider many factors like size, location, and proximity to vacation spots for tourists. Pay attention to how updated the homes are because you can bump up the rental price on a property with high-end appliances or one that was recently remodeled.
You can also look at listings for rental properties in your area to see what types of amenities they offer. For example, a place with a swimming pool is guaranteed to attract renters during the summer months.
Furnish Your Home
Next, you need to decide on furniture for your vacation rental that fits the theme and does not cost you too much. Even if you want to save some money, you should still choose higher quality furniture that does not wear and tear easily. Try furnishing the house around a common theme to make your guests feel right at home.
Set a Rental Price
Once your vacation home is ready to go, you need to set a price. Ideally, you should make enough every month for your mortgage and extra for passive income.
If you want to encourage people to stay longer, offer discounts for weekly or monthly bookings. You will save time and money on cleaning fees and not have to worry about filling your rental during that period.
Manage Your Vacation Rental Bookings
You’ve prepared your home and set your price. Next up is finding the perfect service to manage your bookings.
If you want the all-in-one experience, list your vacation rental booking on an app. They will take care of all of the technical details for you and make the process much easier.
Learn How to Start a Vacation Rental Today
If you have ever wanted to earn passive income with vacation rentals, you should not feel intimidated by the prospect. With this guide on how to start a vacation rental, you can have your first vacation home up and running in no time at all.
Want to learn more about real estate, home improvement, or money management tips? Check out our site for all of the advice and inspiration you will need.