July 20, 2024


Mad about real estate

Best Way to Rent Out Your Vacation Home

My ideas are based on giving your guests the best vacation rental experience possible and in return, receiving the highest rate of return (both financially and emotionally rewarding). I believe, if you treat your guests (renters) with respect and make them feel special, in the same manner as you would treat your own family and friends, your vacation property will be treated with the same respect and any potential damage should be minimized. This will help with repeat renters and excellant referrals for your home.

Renting a Vacation Home is different from renting a year-round unit? In most cases, the owner can earn more income with less potential damage from a short-term “vacation” rental than an annual lease. For instance, if you were to charge $1,000 per month on a monthly based rental with an annual agreement, you would earn $12,000 at year end. However, if you were to rent out your home on a weekly basis for $1,000 as a vacation rental, your possible gross income could be $52,000 at year end. Of course, that would depend on the location of your property. Can it be used year round as a vacation rental or is it seasonal? Is it in a popular location? What kind of attractions are nearby?

Amenities: My basic rule of thumb: Any amenity that you would expect when you are on vacation is what your guest (renter) would also expect. The more that you provide, the more your rental will stand out from others. Your guests will remember all the extras that you provided. And, the more you give, the more you can charge and the less your guests will have to bring with them. I always suggest providing towels, linens, toiletries, cleaning service (at their own expense) a washer/dryer, barb-que, beach chairs and cleaning supplies. Some owners think the renters will “take home” extra items, but that has never happened to me. I have included a complete list in my book, “Breaking all the Rules: How to Rent Your Vacation Home.” www.HowToRentVacationHomes.com

What else to provide: Some owners leave a bottle of wine, or a basket filled with goodies, plus brochures for nearby attractions and always included a Welcome Book with a list of instructions on how to use everything in their home and includes rental rules.

Real estate agent or go it alone? This is strictly a personal preference. If someone were to use a real estate agent, I would suggest you get some references and follow up on them. I would choose a company that has been around for many years. Be sure to get a complete outline of their duties and fees and how they handle emergencies. Find out who will meet your guests at the time of arrival and who will take care of the house cleaning. if they provide the cleaning is that an extra charge or is it included in the initial fees. You really need to be clear on who takes care of what and how much the fee will be for each item.

What do I charge: There are ways to determine what to chare Are there additional expenses (e.g. cleaning) in renting to vacationers?

Deposits: A deposit should be collected with a signed rental agreement. A security/cleaning deposit and rental balance should be collected by date determined by owner. And how far in advance should you collect your money? With any signed agreement a deposit should be collected. The balance should be due before the date arrival and long enough for check to clear. Owner should also include state and city taxes in rental fee. (Owner should always check with their city and state tax laws and with the tax attorney.)

Challenges when renting from a distance? Finding the right person to check on your property and deciding who will clean your unit. How can you overcome that? Or, if you have a plumber, electrician or maintenance person that you use and trust, you may want to ask them if they want to check up on your unit. As for hiring a cleaning person, you could use a local cleaning service or ask a neighbor who you trust if they would be interested in doing it for you as a business opportunity for them. Ask other home owners who they use.

Potential problems and how to avoid them: Most owners are concerned about potential damage in the home. But, if you take the necessary precautions and careful planning, you can avoid most of these issues.

Mistakes people make: They don’t listen to new ideas. Some owners are afraid that strangers will ruin their belongings so they don’t want to update their home.

Tenants: Advertising on the web on several sites and creating a unique property listing. What should you watch out for? Always follow up with telephone calls. Check references. And, ask lots of questions.

A a free Welcome Book (instructional book customized to their rental property), a one-year property listing and rental advice with the purchase of my book, “Breaking all the Rules; How to Rent Vacation Homes.com Also available is the “All in One Vacation Rental Planner & Tax Organizer” to record all rental information including scheduling, deposits, income and expenses and tax forms for year-end reports. www.HowToRentVacationHomes.com

Marie R. Ferguson, author of “Breaking all the Rules: How to Rent Your Vacation Home”. Discover the 29 Secrets on How to Gain Unlimited Rental Profits. Breaking all the Rules….will teach you How to Avoid the 10 Biggest Mistakes Owners Make when Renting out their Home. Marie is an expert landlord of vacation rentals with over twenty years of experience in the financial and real estate industry. https://www.howtorentvacationhomes.com