Are Vacation Rentals A Strong Investment in 2023?
What’s the first thing that comes to mind when you think of a vacation? For me, it's somewhere near the ocean, a light breeze ruffling my hair and tons of tropical drinks on hand. But what makes a vacation truly memorable, you ask? The choice of accommodation, of course! Read on to hear all the details of vacation rentals and whether or not you should think twice before purchasing your next one.
But first, if you would like to learn more about how you can finance these investments click the link below to book a free strategy call with our team at LendCity today.
Pros of Vacation Rentals
Let’s start with the advantages, shall we?
A Solid Home Base
For starters, owning a vacation rental is exceptionally convenient. Not only do you now have a home base throughout your trip, but there is also a bed and a fridge full of food, all ready to be utilized by you. This way, you may come and go as you please without having to worry about how late or early you get back because your rental is just a short ride away!
Larger Spaces
Despite all you’ve heard about the infamous bed and breakfast inn, it is a known fact that they are substantially smaller than a rental and hence, may be reason enough to reevaluate your decision. Buying a rental will ensure you have enough room to not only unpack your belongings but continue to store all that you purchase on your trip for however long you choose to stay there!
Doing Your Cooking
Another fun, and not to mention, resourceful, reason to stay in a vacation rental would be the ease and cost-effectiveness of being able to cook your food. Now hear me out. If you've been on vacation before, you’ll know how easy it is to fall prey to the heroic beacon that is the McDonalds sign after a long day of sightseeing and exploring. Word of advice, don't! It is so much more convenient and cheaper to buy supplies from the supermarket and cook up something equally, if not more delicious, which will not compromise your vacay body! And where else to do this other than in the sanctity of your very own vacation home?
Now, before you immediately grab your phone in attempts to call your travel agent and purchase a vacation rental, here are some things to remain mindful of:
Discover How To Rent A Property With This Step By Step Guide
Cons of Vacation Rentals
Lack of Assistance
Rentals won’t have property managers or support staff on-site to help you get acquainted or help you find the spare room, which is something you will have to get familiarized with yourself. This means it is entirely your responsibility to locate where all the essentials are, not to mention also get them up and running.
The Car Issue
There is also a significant chance you will have to either bring along your car or rent one to commute to and from any tourist attractions you may be visiting, especially if your rental is located near a beach, mountain or resort area since there is usually no public transport there.
Tourism Market Conditions
It is undeniable that short-term rentals are largely impacted by the tourism industry. From people looking for accommodations while they travel to great destinations, or if people simply want a place to stay the night while checking out a local cultural event. Vacation rentals live and die on the tourism market.
So, if the tourism sector in a particular region is not active, your rental is more than likely going to fail and you will lose money. So, you need to spend the time making sure that you know how the market will be.
Even strong markets may only have a few good months and then remain barren for the rest of the year. So, your research into this topic needs to be thorough. Or else a seemingly active investment will quickly become a money pit.
Now that I’ve laid out the facts for you, the decision is all yours. Whether or not you choose to go through with buying a vacation rental, I hope your trip is as enjoyable and memorable as can be!
If you are ready to dive into the vacation investment market, let us help you by setting you up with the best available financing with a free strategy call at the link below.