October 27, 2022
Steps To Take After Buying Your First Vacation Rental Property
Buying your first vacation rental property is a challenging, yet rewarding process. There are many factors to consider when choosing a rental property, but what comes after purchasing it is just as important. Being well prepared for what comes after will help push you in the right direction and set you up for success with your rental property.
Below are some steps to consider after closing on your first vacation rental property.
Enlist a Property Management Team
Once you’ve officially closed on your property it’s time to think about how you’re going to run your rental. There are many different ways that you can manage your property, but it may be most beneficial to consider hiring a property management team so that they can take on the legwork. A property management company deals directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.
Using this type of company can alleviate some of the stress that comes with maintaining a rental home. If you don’t live close to the property or are unable to commit the time required to take care of it, then it would be especially wise to consider this as an option for extra support. They can also provide assistance and guidance when it comes to deciding what you’d like the rent to be and what makes the most sense for what you’re offering.
Property management companies in the area of your rental are well experienced and knowledgeable about the average price of rentals, so having the ability to lean on them for support can be beneficial for both you and your future tenants.
Deal with Repairs
Depending on the type of property that you purchase, there might be some work that needs to be done before it can be considered rent ready. Some properties need less work than others, but it’s important to do multiple walk-throughs of the house to ensure that you’re aware of any issues or anything that needs immediate attention. When it comes to inspecting the house for any necessary repairs, you should go through every room and check to make sure all of the windows are secure and in good condition, the flooring is intact, any appliances in the kitchen are working properly, the furnace is running properly, and the condition any other appliances that are susceptible to normal wear and tear. If you purchase new appliances or if there are appliances that need repair, it may be worth considering a home warranty. A home appliance warranty is an annual contract that pays for a replacement or repair of the interior appliances and/or systems due to normal wear and tear or manufacturing defects. Ensuring that all of the appliances are up to date and working properly will help you to create a better experience for people that rent your vacation home.
Consider New Installments
Since this is a vacation rental property, you’re most likely not going to be there all of the time. With that being said, securing your property is a good way to ensure that it’s protected and monitored at all times so that you’re aware of everything that goes on and in the know if something were to happen. Installing security systems and cameras around the house can provide you with the comfort that your rental property is well protected. In addition to security systems, it’s also worth considering including technology updates in other parts of the home. Installing smart devices in rentals can turn those properties into smart homes which will increase the overall appeal of the property. Installing smart devices such as smart thermostats and smart lighting can allow guests to set the temperature and lighting to what they’d like to provide the most comfort during their stay. Landlords can also benefit from this feature because in using smart lighting, the lighting can be adjusted through an app so that when guests do arrive at the house, you can adjust the lights so that they’ll be walking into a lit-up home when they arrive.
Manage Necessary Upkeep
Along with installments, a vacation rental property also requires different types of services to ensure that it’s in the best shape for each guest that comes to stay. You may consider hiring a cleaning service that can come in between guests to ensure that it’s in the best state for when the new guests arrive so that they can enjoy their stay in a clean home.
You should also find a good landscaping company to help with the upkeep of your exterior. Just as the appearance and functionality of the inside are, the outside is just as important. When figuring out the types of services that you need and when you’ll need them, using maintenance software can be beneficial in helping you manage and plan the different services that are necessary for the upkeep of the property. When searching for a vacation property to rent, one of the first things people will look for is curb appeal. If the exterior is not well maintained and has clear issues, it may be difficult to find and retain guests. Landscaping is an important part of curb appeal, but so are the siding and other key features of the house. Before approving the property to be available to rent, take time to assess each part of the property so that you’re doing your best to improve the overall attractiveness of the home.
After you’ve put time and money into your improvements, working hard to make it rent-ready, you want to make sure that it stays in good condition.
A way that you can help to keep the home in good condition is by creating a rental contract. In doing this, you as the landlord can set rules for guests to abide by to help lower the risks of damage being done to the home. In addition to creating a rental contract, if you’re considering renting out to long-term tenants, then it might be worth thinking about including a section about the tenant getting renter’s insurance. Since you’re going to be renting out a vacation home to people that you don’t know, accidents and other mishaps are likely to happen. Not everyone that stays at your rental will be a good guest and in case something goes wrong, the renter’s insurance will protect you and make sure you’re covered if anything were to happen to the property.
Purchasing a vacation rental home is a large investment and involves a lot of work, but when you decide to move forward in your decision to purchase the property, take time to consider the next steps so that you’ll be getting the most out of your investment. Understanding what comes next will allow you to be prepared for what needs to be done. Owning a vacation rental property will allow you to have a second source of income which can be put toward home improvements on the rental, buying another property, or even just having some extra money in your pocket.