This article is by Christine Karpinski of Home Away.
More and more people are investing in vacation homes today. And no wonder:
between unbelievable real estate prices,
low interest rates, and a rapidly growing base of potential customers,
vacationers who’d rather stay in a charming beach cottage or woodsy cabin rather
than a hotel room—there’s never been a better time to buy. But here are the real
questions to consider before you purchase a vacation home: Is the lifestyle that
comes with owning and managing a vacation rental home right for you? Do you have
the right personality for the job?
Christine Karpinski, director of Owner Community for HomeAway, a leading
online vacation home rental marketplace, and author of How to Rent Vacation
Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish,
Rent, Maintain and Advertise Your Vacation Rental Investment urges
homeowners to ask themselves a serious of questions to determine whether they
should consider buying a vacation rental.
Am I patient? It’s important to recognize that your vacation
rental is not going to be a “get-rich-quick” opportunity. The most profitable
vacation rental owners are patient and keep their focus on the long-term
potential for profiting from their homes.
Do I have five extra hours a week to spare? That’s about how
long it takes to manage your property during peak season—a job that involves
answering inquiries, taking reservations, managing staff, and so forth.
Am I willing to do business on a week-by-week basis (rather than
year-by-year)? Managing a vacation rental is nothing like being a
full-time landlord. You won’t have tenants with year-long leases. In fact, for
the most part, your guests will be gone in a week or so. Every week presents a
new opportunity to be successful and impress new guests. You have to be ready to
meet that challenge head-on.
Am I detail-oriented? You need to be, if you’re going to be
a good vacation homeowner. Guests expect a certain level of quality. Be prepared
to regularly visit your property to make sure your on-site staff is keeping it
in excellent shape and to freshen it up as needed.
Can I follow a marketing plan? Fortunately, you don’t have
to be a professional marketer to follow simple instructions. Just as
fortunately, the days of old-school newspaper advertising are over. These days
there are many easy ways to market your vacation rental property.
Am I responsive? You have to grab opportunities right away.
Potential renters will more than likely inquire about more than one property,
and in order to be the owner who closes the deal, you have to act like any great
entrepreneur and be the first to return the call.
Am I personable? Building trust is a huge factor in the
vacation rental industry. Making people comfortable when they are renting your
home is a must.
Am I a good people manager? If you’re a long-distance
vacation rental owner, you must be prepared to hire and manage a productive
“staff”—which means housekeepers, lawn care people, plumbers, and so forth.
Building a great staff and making sure they understand what you want to achieve
with each guest will ease your anxiety and make your renting experience truly
enjoyable.
Am I okay with managing from a distance? For many people,
their vacation property is hours (and many miles) away from their primary
residence. As long as you have the right on-site staff in place, it is easy to
manage your vacation property from far away.
“Being a vacation rental property owner isn’t for everyone,” says Karpinski.
“However, for many people, it’s a fantastic way to invest money, earn extra
income, make new friends, and truly experience different parts of the country.”