Do you have childhood lake house memories or dreams of beachside retirement? Not sure how you can afford to purchase a vacation home of your own? Sharing your second home with others as a vacation rental is a path that can lead to great investment returns and maybe even a few new friends. We talked to vacation property gurus to get their top tips and advice for rental owner rookies.
Investing in Vacation Rental Property
With platforms like Airbnb and Homeaway being used by more and more people each day, investing in vacation rental property has become a goal for many, whether they plan to eventually use it themselves, or simply want to diversify their real estate investment portfolio.
The first step in buying a vacation rental property is to pick the right place. Andrew McConnell writes about vacation rentals and the sharing economy, and is the Co-Founder and CEO of Rented.com, the world's largest marketplace for vacant rental weeks. He advises that vacation home buyers be honest about their goals and use those goals to guide their choices.
"The first thing to ask when buying a vacation property is: Is this an investment or a vacation home? If you are really intending it to be a vacation home, many of your design decisions will be based on your own personal tastes, which may not align with what will actually maximize rental income, i.e. guests don't always have the same tastes as you.
If you want [your vacation property] to be as good of an investment as possible, your own desires for the home are secondary to those of the guest. There are tradeoffs with each. In one you get the vacation home of your dreams. In the other, you get outsized returns. It is often difficult to get both." – Andrew McConnell
"The full article can be found at PennyMac."