Using Vacation Rentals to Take Advantage of Tourism Traffic in 2023
If you’re looking to step into the real estate investment game, vacation rentals are a good starting point. They offer an easy way to make some extra money and are usually quite simple to manage. It’s a good idea to invest in an area with year-round tourism as this will assure you’ve always got money coming in. If you’re investing in an area with seasonal tourism, be sure to factor that into your budget.
As with any type of investing, it’s important to develop a good plan before purchasing a property. This plan should include your budget, marketing strategy, the average rate per night and more. If you properly plan for your vacation rental investment, you’re sure to have a great source of passive income—and a place for your own vacations during the off-season. Learn the ins and outs of vacation investments and start looking for the perfect piece of property.
Of course, before you can begin looking for an investment property, you need to be confident you can get the best available financing. That is why at LendCity, we want to offer you a free strategy call to discuss your options. Click the link below for more information about this offer.
Advantages of vacation rental investments
With Airbnb and similar platforms becoming so popular over the last several years, it’s easy to see why many people are choosing to invest in vacation rentals. Thanks to these platforms, it’s easy for tourists to find tourist rentals—and in turn, for owners to find renters. You easily can invest in a local home, which usually requires less maintenance than a hotel or motel. Local home expenses are also cheaper.
One of the biggest advantages of owning property in a popular vacation spot is that you can go stay in it whenever you want. You might even decide to use this property as your future retirement home. Even if you do decide to sell the property one day, it will probably still be worth a lot of money. Many vacation properties increase in value over time.
Disadvantages of vacation rental investments
There are certain issues that can occur with vacation property investments, though they are easy to avoid with the right plan. If you don’t live in the same area as your investment, you’ll be a remote landlord, which is challenging. You won’t be able to visit your property on a frequent basis, so it’ll be hard to tell when maintenance is necessary. That’s why it’s important to build a trustworthy team of locals who can report any issues with the property. Be sure to check out any property management services available in the area.
Like with all investments, owning a vacation property means you’ll have an extra set of bills, which might be hard to pay if you aren’t getting enough guests. This is why it’s important to do research. You’ll want to make sure you’re buying property in an area where tourists want to stay. It’s also important to make sure you’re charging enough to cover all expenses, even if no one is staying in the property for a little while. Improper planning could result in losing money on your investment.
Being a remote landlord
Some people struggle with the idea of being a remote landlord. Being a remote landlord is much easier these days, however. You can easily communicate with property management companies via phone or video chat to keep up with your property. Thanks to services like Airbnb, it’s also easy to vet people staying in your vacation property. Airbnb runs background checks on all its users to assure that guests don’t have a criminal record.
With all that said, it’s still important that you remain proactive about managing your vacation rental. Keep in constant contact with any local property management companies or real estate agents that you’ve been working with. Be sure to also take care of any maintenance needs and repairs as soon as possible.
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Make your Vacation Property Rental Stand out
If you’re investing in an area that gets plenty of tourists, it’s likely there is plenty of competition for vacation rentals. The good news is that tourists are usually on the lookout for a new place to stay. This is especially true if your vacation rental is in an area with expensive hotels.
These days, many people go on vacation to experience what it’s truly like to live in a certain area. If you’ve invested in a quaint property, consider leaning into the “local” aspect. Say that your property allows guests to experience the area like a local by staying in a great neighbourhood with plenty of nearby amenities.
Be sure to also make sure that your property features all the basic amenities a guest would want. This might include a fully stocked kitchen, plenty of towels, clean bedsheets and more. There are also many things specific to certain areas that you could include. If your vacation rental is at the beach, for example, consider including boogie boards and other beach toys with your rental. If it’s near the mountains, include information about local hiking spots and recreational opportunities. These little things can make your vacation rental a favourite of guests.
Advertising your vacation property rental
Proper advertising is essential when it comes to investing in a vacation rental. If tourists don’t know about your property, how are you going to make any money? Many booking sites like Airbnb offer advertising options. It’s usually a good idea to list your property on multiple booking sites to increase visibility. In addition to Airbnb, other popular vacation booking sites include FlipKey, Tripping.com, HomeToGo and many more.
You might also consider starting a website for your vacation rental. This will make the rental look more professional and could help you stand out from the competition. Having your own website also allows you to include many videos, pictures and blog posts featuring your property.
Promoting on social media is a good idea as well. Many people find their vacation rentals via social media sites like Instagram and Twitter. Having a social media page will also allow guests to tag your property—and if it’s ‘gram-worthy, their friends will want to know more.
Owning a vacation rental can take a lot of work, but it’s a great way to make passive income. The hard work and planning will pay off when you have a vacation rental that you can visit any time!
So, if you are interest in learning how you can finance a vacation property rental today, we are here to help you. All you need to do is click the link below to book a free strategy call with our team here at LendCity.