Arthur: Ted James
If you have a good chunk of savings and looking to start a profitable side hustle, a vacation rental business is the way to go. This article by Caribhomes will explore all you need to know about buying, maintaining, and earning from a rental property.
Purchase the Right Property
The ideal property is one that can be rented year-round. Here are the prominent features you should look for:
- Safe Location: Avoid buying property in areas prone to natural disasters or extreme weather. Instead, prioritize ones close to prominent tourist attractions with good connectivity.
- Include Amenities: Look for homes that include kitchen appliances. By adding a few pieces of furniture, the home will be furnished and eligible for higher rents.
- Rent Growth: Research the future housing market trends of the region and prioritize homes that show the potential to earn higher rent in the future.
Consider All Important Costs
In addition to the purchase price there are numerous other expenses you’ll bare as the property owner:
- Insurance Costs: Whether it be theft, intentional damage, or natural disasters, having home insurance is important to safeguard your property at all times.
- Property Taxes: As reported by Annuity.org, this is an annual tax that you as the owner will be liable to pay. The total payable amount will depend on your property value and tax rates set by the local government.
- Maintenance Costs: As reported by The Balance, a common recurring expense for the property will be paying utilities such as gas, internet, electricity, and water. Be mindful of paying these on time to ensure your tenants do not face issues.
Enlist Professional Help
As a first-time rental property owner, managing all major responsibilities single-handedly may become overbearing. Here are a few ways to take some burden off your shoulders:
- Hire a Concierge Service: To streamline the home buying process, choose to work with a concierge service that will provide you access to realtors, mortgage brokers, appraisers, and much more. Additionally, they can undertake the role of property management and look after the upkeep of the home.
- Use an Invoicing Software: To ensure timely payment from tenants, use invoicing software to set up an automated billing system. Customize your design by using an invoice template to develop brand awareness.
With sound planning and assistance from professionals, you can be confident of your vacation rental business being a success.