If you’re looking for a unique way to diversify your investment portfolio (or just a way to increase your monthly cash flow), it’s time to consider buying and renting out a summer vacation rental.
First things first, you must ask yourself whether a summer vacation rental makes financial sense for you and your business. Is building a rental portfolio something you want to do? Talk to your tax advisor and see how the new purchase will affect your tax rate. Keep in mind however, local codes and regulations vary market by market.
Secondly, you must decide upon the location you wish to make your purchase.You must first ask yourself whether or not you want to landlord the property yourself or hire a property management company. This answer will help you determine if you want to buy the property in the market where you reside or elsewhere. Research the cost of properties that are situated near local hot spots. Ultimately, choosing your summer vacation rental property location will be your biggest decision.
Finding The Right Summer Vacation Rental
Once you’ve minded your due diligence and chosen to buy in an area that meet your needs, it will be time to create an action plan to manage the property.
If you choose the property management route, you’ll have to research the best companies in the area. What are there rates? How are they reviewed? Will they be hands on? Finding the right property manager can make or break your success. If on the other hand, you choose the manage the property on your own, you’ll need to focus on your marketing strategies.
Follow our eight step guide to successfully find, buy, and rent your first summer vacation rental.