Owning a second home can be a great way to provide a comfortable and enjoyable place to relax and enjoy time away from the hustle and bustle of everyday life. However, if you are looking to turn your second home into a profitable vacation rental, there are a few steps that you need to take to ensure success. From researching the best markets and finding ways to furnish and decorate your home to understanding the local regulations and marketing your vacation rental, there is a lot of work involved in turning your second home into a money-making venture. With the right strategies and a bit of hard work, you can turn your second home into a profitable vacation rental.
Good source of passive income
Owning a vacation rental property can be a great way to boost your retirement savings and create a source of passive income. Compared to other investment opportunities, vacation rentals have relatively low operating costs, allowing you to charge a higher rate per night and maximize your rental income. With the right strategies and a bit of hard work, you can turn your second home into a profitable vacation rental.
Ever-increasing demand in top vacation markets
The right market can make all the difference when it comes to turning your vacation rental into a profitable business. There are many factors that you need to consider, like the average length of stay and how many other vacation rental properties are in the area. An ever-increasing demand for vacation rentals in top vacation markets such as Martha’s Vineyard and the Hamptons has resulted in vacation rental owners having more options when it comes to booking reservations. This increased competition can make it harder for vacation rental owners to book their property and earn enough revenue to cover their expenses. If you want to turn your vacation rental property into a profitable business, you need to look for markets that have a high demand for vacation rentals and a low supply. The best way to determine if a market is profitable for vacation rentals is to look at the vacation rental occupancy rates and rental rates. You can find these statistics on websites like Vacation Rental Income or Airbnb TripAdvisor.
High appreciation value
Turning your second home into a vacation rental can be a great investment that provides rental income, but it can also be a great investment for increasing the value of your home. Vacation rental properties tend to appreciate in value at a faster rate than other real estate properties because of increased demand, a high-quality tenant pool and short-term, flexible leases. If you decide to sell your vacation rental property, you can expect to sell it at a higher price than if it were just a standard second home. If you are planning on taking out a mortgage or refinancing your home, you will likely have an easier time getting approved if you have a vacation rental property on your property than if you have a second home that doesn’t bring in any extra income. Having a vacation rental property also increases the certainty of your income, allowing you to get a lower interest rate when financing your vacation rental property.
Homes as one of the safest and secure investments
Although real estate investing has historically been considered a long-term investment, it is still considered to be a very safe and secure investment. With the right strategies, you can turn your second home into a profitable vacation rental. There are various advantages of turning your second home into a vacation rental over a primary residence, such as the option to stay when you want and earn when you’re not staying there. Vacation rentals are also generally easier to maintain compared to primary residences and typically have lower maintenance costs. Real estate also has the added advantage of being diversified. If you decide to invest in vacation rental properties in different markets, you can diversify your portfolio even further. However, real estate investing does require significant upfront capital and time to be successful.
Double benefit: Stay when you want, earn when you’re not staying
The best way to promote the use of your vacation rental is to make it easy for guests to book and stay when they want. You can easily achieve this by listing your vacation rental on multiple rental platforms, including online travel booking platforms like Airbnb, VRBO and Hotels.com. Another way to promote your vacation rental is to advertise it with yard signs, pamphlets or brochures that are distributed in the area surrounding your vacation rental. The best place to start is by doing some research to identify the demand for vacation rentals in the area and what services, amenities and prices are currently being offered.
Property Management Companies help you manage your vacation home
If you decide to turn your second home into a vacation rental, you need to make sure that the home is in good condition and clean before every guest check-in. Managing a vacation rental can be extremely time-consuming and often results in a host having to turn down guests due to work or family obligations. That’s why it’s often a good idea to partner with a property management company to help you manage your vacation rental. Property management companies are able to screen potential guests, collect payments and ensure your vacation rental property is in good condition. In return for these services, property management companies charge a percentage of the rental income from your vacation rental. Property management companies offer various levels of services, including regular cleaning and linen service, communication with utilities and insurance companies, booking guests, collecting payments, sending out marketing materials and managing bookings and profits. Before choosing a property management company, make sure you thoroughly research the company, including their experience managing vacation rentals, reviews from other clients and the management fee they charge.
List your home with Elevate Vacation Homes
Ready to take the next step and turn your second home into a profitable vacation rental? Then it’s time to list your vacation rental with Elevate Vacation!
Through our online platform, you can list your property and make it available for booking. From one-bedroom cottages to luxurious five-bedroom beachfront mansions, we list all types of vacation rentals. When you list your vacation rental on our site, you’ll have access to our network of potential guests from around the world. Whether you decide to list your vacation rental on our site or another vacation rental site, there are several factors you will want to consider when pricing your vacation home. The area of the city that you decide to invest in, the type of property you own, and the season it’s available to book all play a role in determining your vacation rental price point. When you decide to turn your second home into a profitable vacation rental you can expect to enjoy an increase in income, a more comfortable place to relax, and the chance to meet new people from around the world!
