Tuesday, January 7, 2014
Having a second home you can escape to every weekend is an unmatchable luxury. You will not have to go through the hassles of looking for a hotel or lodging, particularly during peak seasons and holidays when most hotels are fully booked. Having your own vacation home will also make spontaneous trips a lot more feasible. After getting home from a particularly harsh day at work, you can decide to go straight to your vacation home for an overnight retreat. There are definitely many perks to owning a vacation home.
However, during busy months, your vacation home may be left unvisited for extended periods of time. Purchasing a vacation home is really more of a luxury than a real estate investment. If you’re looking for some form of return on your investment though, one way of achieving this is by renting out your property.
Keep in mind that potential renters will most likely want to rent a vacation home during the holidays or peak seasons, when you might actually want to enjoy and stay in your vacation home. Beach homes will be very popular during the summer, while home getaways in cooler places such as Tagaytay and Baguio may be more in demand during Christmas season. Decide whether you want to forego some of your perks to earn some profit.
Cleaning and maintenance
Potential tenants will expect a certain level of quality and comfort in vacation homes, so it’s important to keep your vacation home in top condition. This will involve regular repairs and maintenance work. Regular cleaning will also keep dust bunnies and cobwebs at bay. You may opt for a regular caretaker to stay in your vacation home, or just pop in every month or so to check for any wear and tear that needs to be addressed.
Your rental fee will be one of the primary factors for your earnings. Look around your vacation home’s surrounding areas and know your competitors’ rates. This will help you establish a realistic and practical rate for your vacation home. Pricing too high will get you less tenants, while pricing too low may not get you to your expected profit. A good rental fee will attract a good number of renters and will generate a good cash flow. Another thing to consider when setting your rental rate is the expense you put into the property. Repairs, maintenance and cleaning all have respective costs. Make sure you take these expenses into account. If you have a caretaker who stays in your vacation home full time, this can be an added perk for your tenant, and you can charge more for cleaning services. - Aislinn Kee