Have you ever wanted to learn how to invest in vacation rentals? The process may be easier than you think.
Not unlike their year-round counterparts, vacation rentals have found themselves at the top of investors’ wish lists around the country. With a housing market that is firing on all cylinders, rental properties have become the beneficiaries of favorable conditions, and vacation rentals are no exception. For what it’s worth, now may be one of the best times in the last decade to capitalize on the spreads vacation rentals are capable of providing. That said, there is no reason the average real estate investor shouldn’t at least consider learning how to invest in vacation rentals.
LEARN HOW TO INVEST IN VACATION RENTALS IN 6 EASY STEPS
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Step 1: Pick A Location
As with any venture into the real estate industry, location has almost everything to do with the profitability of a respectivevacation rental property. If for nothing else, it is the location that will create demand; the one thing most vacation rentals can’t afford to do without. Having said that, you must prioritize the location in which you choose to invest over just about everything else, even the property. You could very easily argue that the location of the investment is more important than the home itself. Remember, you can change the house in any way you see fit, but the location is permanent.
It should go without saying, but you need to choose a location that is desirable, both to you and your prospective tenants. Of course, what is desirable varies considerably by location, but there needs to be an inherent “draw†to the subject property in question. Think about it from a renter’s perspective; they are going to prioritize the properties that get them closer to where they want to be. Does the property you are looking at have what it takes to attract summer tenants?
As someone learning how to invest in vacation rentals, it helps to know that weather is a deciding factor. It’s not a coincidence that the most prosperous vacation rentals are in regions where summer weather conditions are, for lack of a better term, optimal. I recommend looking for your first vacation rental property in an area you already deem desirable; that way you already know the location has enduring qualities, and you can choose to stay there whenever it is vacant.
