Why turn your vacation home into a vacation home rental? Many of those who buy vacation homes overestimate the time they're going to spend at the vacation home and find themselves with an expensive second mortgage. But, before you start opening up the house to strangers, here's what you need to know.
Finding Renters: There is no shortage of vacationers who are looking to stay somewhere besides chain hotels and who would like the amenities offered by a vacation home rental. The first consideration should be price. Study the market, and understand how what your competitors are doing. Consider dropping your price to a competitive level.
You should also be aware of how you package your vacation home rental and to whom you are marketing. Offer deals, such as throwing in a half-price stay during the off-season to renters who rent your vacation home in the peak season. Also, consider marketing to specific groups who frequent the area in the off-season, such as senior citizen groups or college students.
Take Advantage of Modern Technology: Hire a professional photographer to make sure your vacation home rental is presented in the best possible light. Build a Web site, or advertise on a Web site for home rentals. An increasing number of your clients are going to be technologically savvy, and you need to be, too. You should also make your rental home as appealing as possible. Your renters don't want to go to the Laundromat to wash clothes. Install amenities like washers, dryers, microwaves, coffee makers and wireless Internet access.
Preparing for the Off-Season: Renting in the off-season, however, can be a real challenge. While far from impossible, you will likely need to change your renting strategy as you move into the off-season. The key to renting your vacation home in the off-season is flexibility, meaning you might need to alter your normal rental requirements.
You should also plan on lowering your rate by at least 30% to 50% in the off-season. While this might mean you make as much in a month during the off-season as you did during a week of the peak season, it also means you're generating some income during a difficult time of the year. Make sure, however, not to lower your rates too far. It makes little sense to be booked months in advance if you could have generated more rental income by not dropping your prices too quickly or too low.
Staying Flexible: Finally, remember we're talking about flexibility, don't limit your vacation home rental to couples without children and pets. Make explicit that children and pets are welcome, and set up the home with them in mind. You can also charge more per night if your renters bring their pets so you can handle any extra cleanup.
While renting out your vacation home in the off-season presents a unique set of problems, it's not impossible. A little flexibility will go a long way to making sure you have renters virtually year-round.
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