Acquiring a Pinecrest vacation home can be an attractive idea. You can have your own vacation house, and you can also use it as a rental property throughout the year to help with expenses. But, anyone who has ever owned and rented out a vacation home will definitely tell you that things aren’t always what they seem. Truth be told, there’s a lot more to owning vacation rentals than meets the eye. Prior to committing to vacation rental ownership, you should conduct all the pertinent research.
Pro: Extra Income & Tax Breaks
A really sweet perk of owning a vacation rental is the extra income you can earn from renting it out. Depending on whether you choose to rent it out short-term (days or weeks at a time) or long-term (several months at a time), it’s quite possible that you could get enough back to let the property pay for itself.
Con: Another Mortgage Payment & Expenses
Of course, buying a vacation rental comes with a mortgage payment, insurance, property taxes, utilities, and other expenses. All of these are essential details to take into account when planning a vacation rental ownership. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.
Pro: It’s Yours to Use
Ownership of a vacation home essentially means that you can do what you please with the property. This is a great perk when you visit the location frequently. You won’t have to stay at a hotel! You can also use the property for business or personal events, meaning you won’t have to pay to rent event space elsewhere.
Con: Marketing and Screening Tenants
You can look for tenants to market your vacation home to if you have no plans to frequently occupy it. Marketing can be a time-consuming task, as is screening potential tenants. It’s quite difficult to manage when you intend to rent out for days or weeks at a time. Due to the high turnover, it will be hard to find tenants to rent the home year-round.
Pro: Building Your Retirement Fund
If you want steady growth in your retirement fund, investing in rental real estate is a great means towards that goal. Rental property owners often include their rental income or property sale into their retirement plans. The volatile stock market or savings account with little interest are both great investment ideas, but real estate offers a lot of safety and growth that no other mode of investment can offer.
Con: Property Management Takes Time
Owning a vacation rental may sound amazing, but it takes a lot of work to make it work. It will take years of property management before a payoff comes. It’s even more burdensome when you are in charge of keeping your own property clean and maintained, or if your vacation rental is far from your primary residence. Several vacation rental owners end up shocked at how difficult it can be to prepare for each new tenant; this is something you don’t have to deal with when it comes to long-term residential rentals.
There are many benefits to renting out a vacation home. Getting a good property management company will save you from the most common of mistakes, though. Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Genesis has a top-notch team of Pinecrest property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 786-744-5700 today!
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