How to Choose Your Peak-WeeksPosted by: Admin
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!