Thinking of renting your property? You are about to embark on an exciting journey. The vacation rental industry can be very lucrative, and you can be a part of this blossoming industry with your rental property.
More people than ever before are choosing vacation rentals over hotels. They choose rentals over hotels because:
• Rentals provide a greater value
• Rentals have more amenities
• Rentals are more spacious
• Rentals are private
As a new vacation rental owner, you will be tapping into an already established network of renters that are eager to find great rental properties like yours. There are countless people looking for vacation rentals right now, and we will teach you how to reach those people and make money with your property.
Before you list your rental property on a vacation rental website, you will need to decide how often it will be available for rent. That way, you will be able to handle inquiries in a timely fashion.
In order to decide how often you want to rent your home, you must determine what your goals are for the property. That way, you can set a schedule that will allow you to reach your goals.
Most people fall into one of three areas:
• Owners who want to make a profit.
• Owners who want to pay the mortgage and expenses of the home.
• Owners who want to cover their mortgage
Decide which of the three areas you fall into so that you can determine how many weeks out of the year you will need to rent your home.
Be sure to read my previous post on Peak Weeks and put the information together with this post so you can make a solid and lucrative plan for this coming holiday season.
Your peak week rental rate should most likely equal the cost of your monthly mortgage in order to break even with the property. Thus, if you are interested in paying for your mortgage through rental fees, you will need to rent your property for 12 peak weeks out of the year.
To cover utilities and maintenance costs, you can continue to rent the property during off-peak weeks. So In most cases, to cover both your mortgage and costs you will need to rent your property for 12 peak weeks, which will cover your mortgage, and five or six off-peak weeks to cover the cost of utilities and maintenance.
Obviously, you do not want to just break even with the rental from your property. Your goal is to make a profit therefore, you will need to rent your home for the 12 peak weeks, five non-peak weeks and additional weeks throughout the year. The number of additional weeks you rent your home will be determined by how much profit you want to make off your vacation rental property.
Remember, peak weeks are the best way to make money in the vacation rental industry because they contain the most desired vacation dates. Peak weeks vary from one market to the next, depending on location and renter interests. Most markets have approximately 12 peak weeks in them, so you will most likely need to have your home on the market during all of the peak weeks in order to reach your goals.
Renting to friends and relatives can cause some friction within the family so choosing when and how to offer your property to them is critical in sustaining your income and keeping your family and friends happy, more on that soon!
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