What You Need to Know About Vacation Home Rental Ownership

ISLAMORADA, Fla. - Feb. 12, 2016 - PRLog -- Per Kim Bagnell Thaler, Top Producing Real Estate agent for Sotheby’s International in Islamorada Florida,"Not too many people consider becoming an owner of a vacation rental.  However, when they do think about it, they often wonder how the process works.  The largest objection that investors tend to have is maintenance costs.  However, if you are smart about it, you will earn more than enough to pay for routine maintenance and still make a nice profit.

Buying into a tourist market that is hot is the key to investing in a vacation rental.  The Florida Keys and many places along the west and east coast of the peninsula all are ideal.  Location, location, location might be a really old real estate cliche.  However, it definitely holds true here as well.  Your vacation rental needs to be in an area with plenty of attractions and destinations in order for it to work well for you.

Vacation Rentals- What They Are And Are Not

Although location is definitely the most important factor, you also need to understand what a vacation rental is exactly and what it isn't as well.  Typically multifamily properties, cottages, condos and villas all make great vacation rentals since they are fairly easy to care for and maintain.  Single family houses can also be vacation rentals.  However, there are a few drawbacks to this.  For one thing, they require more maintenance.

In general, vacation rentals tend to come furnished and have restaurants and a grocery store that is nearby.  That is once again all about location.  There are of course also vacation rentals located out in the woods, however they are catering to a specific niche and clientele.

Purchasing A Vacation Rental

In order to purchase the best rental property for you, there are a couple of things that you need to be aware of.  The following are some of the most important things that you need to know in order to make a wise decision:

- Location is critical.  In order to purchase the right property, location is crucial.  The National Association of Realtors reports that beach and mountain properties are often the best choices.

- Assess the true rental potential of the property.  Try to see things through the eyes of a family looking for a rental for their upcoming vacation.  What things would they most likely be searching for?  They probably will want certain amenities for one thing.  So if you have a beach property for rent, then a cooler, picnic basket, umbrella, beach chairs and volleyball kit would all be nice things for you to offer.

- Purchasing far away or nearby.  It will depend on the level of involvement you want to have with your property.  Of course you will need to live nearby if you are wanting to do your own upkeep and maintenance.  However, if you would prefer to hire a property management company to do these things for you, then it really doesn't matter where you live.

- Be very familiar with your financial situation.  Buying a vacation rental will probably involve getting a mortgage.  Then there are the expenses for furnishings, maintenance and insurance, which can all add up rather quickly.  You need to make sure you can handle all on those expenses.  You should also plan on your vacation rental being vacant for around three months out of the year.

- Choose a property that has potential.  One thing that is very important is the number of bathrooms and bedrooms that is has.  If you buy a one bath, two bedroom vacation rental, then you aren't really going to stand out from hotels that are nearby.  The smallest floor plan that you will probably want to get is a two bath, two bed unit.  In general, the more bathrooms and bedrooms there are, the better off you will be since you can cater to larger audiences that way.  Some people have large families, and others like to vacation with a group of friends.

Finally, when you are ready to start searching for a vacation rental to invest in, contact a local real estate professional for assistance.  That will help to prevent you from inadvertently making mistakes.  It will also ensure that you have an experienced and skilled negotiator working on your behalf.

Kim Bagnell Thaler is a pioneer among Florida Keys realtors. Regarded as one of the most influential realtors in the middle and upper keys, she provides expert and professional real estate service. With her vast knowledge, 20 years experience and commitment to the highest ethical standards, Kim remains a standout among other Florida Keys Real Estate  Agents.