Utilizing your property as a short-term vacation rental is a great way to maximize your passive income, funding an asset that you can use when you would like. If you are considering a vacation home,but are not sure if you will use it enough to make it a worthwhile investment, setting the property up as an Airbnb can be the perfect solution.
This is also a great solution if you would like to purchase a property now that you will move to later. If you are not sure how to get started, we have some tips to help.
Find Out About Regulations
“Before investing in a property to use an a short term vacation rental, make sure there are not regulations that will get in the way. Some HOAs will restrict the use of the property, and there may be other restrictions in place from the city or county. Before doing anything, make sure you have the green light to use the property you are considering in your desired way.” – Tip by Brady Sandahl, Top Real Estate Agent in Coachella Valley
Equip the Property
After purchasing the property, it’s time to get it set up as a fully equipped short term vacation rental. This may or may not involve renovation projects, but will definitely require thoughtful furnishing.
“Maximize the profits of your property by setting it up to host as many people as possible. The more beds you can offer, the better your nightly rate. Bunk beds and pull out couches are a great way to be able to list your property as hosting a higher number of guests.” – Tip by Matthew Kennedy, Lewiston NY Realtor®
You should also lean on smart home features to streamline your process. There are many smart home devices that can make offering your property as a short term vacation rental much easier, including smart locks for keyless entry, with a code that can be changed between guests for security. You can also install smart thermostats, bluetooth speakers, and other devices that will make your guests more comfortable.
Set Your Price
There is an element of trial and error for pricing your short term vacation rental, but start by looking at comparable rentals in your area to get an idea of how to list your price. Make sure the price will provide enough funds to cover your mortgage, utilities, cleaning fees, property management expenses, and any other relevant expenses.
Consider a Property Manager
Especially if you do not live in the area, you may want to consider contracting with a property manager or property management agency. The role your property manager plays will vary depending on your needs and preferences, but they can deal with anything that comes up during your guests stay, including providing additional linens, handing landscaping, addressing repairs or replacements that need to take place, and being a point person in case of emergency for insurance claims and other unfortunate events. – Tip from Mukilteo Landscapers Firstfruits Landscaping
While having a property manager is not a total necessity, it can take a lot of your stress out of the process and allow you to treat your vacation rental as truly passive income. If you know that dealing with noise complaints from neighbors or responding quickly to a request for more pillows is going to stress you out, consider delegating those roles to your property manager.