If you have purchased a retirement home in a vacation spot and are currently simply using it to escape daily stress from time to time, why not convert it into a vacation rental? This can help add a sizeable chunk to your monthly income.
Step 1: Decide on your goals
Decide on how many times a year you would like to use the property and the times you would like to give it out on rent. Secondly, you should decide how much money you want to make, taking into account the expenditures that come along with owning a property. Some owners simply want their expenses paid for while others wish to make a profit.
Step 2: Comply with rules and regulations
Once you decide on giving away your home out as a vacation rental, you need to educate yourself about the rental rules and regulations. Important among these are Zoning rules (that change from time to time), Safety and Health rules (fire alarms, smoke detectors etc), Business licenses and permits as well as rules pertaining to Homeowner associations.
Step 3: Decide upon your level of involvement
Some property owners have full time jobs or might live rather far away from the properties. In such a case, it is best to hire a property manager to look after the maintenance and day-to-day running of the property. This might seem an added expense but it actually ends up paying for itself several times over. You need to assess the amount of time you have as well as your own temperament, since property management comes with its fair share of stress and strains.
Step 4: Hire a team of helpers
Every property needs maintenance and looking after. Even if you decide to manage the financial aspects of the property all by yourself, you will at least need maintenance and housekeeping. You will also need a handyman to take care of plumbing/electrical issues. Finally you must consider hiring a tax accountant or an attorney to help with property taxes and laws.
Step 5: Equip the house
A well-equipped house sells itself. Include basic amenities in your vacation rental: comfortable sofas, beds and TV set. You need not keep valuable items but you should provide items which will be convenient for the out-of-town guests’ .These include coffee makers, alarm clocks, adequate cooking gear etc. High speed Internet, hair driers, first aid kits and entertaining games are other must-haves in vacation rental homes.
Step 6: Market the property
Naturally, an essential part of turning a property into a vacation rental is spending some bucks on marketing. You can also use free websites for listing the rental property. Click here if you wish to learn more about listing weekend chalets in the Blue Mountain Area. Make sure you use attractive photos, a catchy title and enlist the amenities when marketing the home. If you have the time and resources, you could even think about having a personal website about the property.
Step 7: Decide upon the rental rates
You must also find out what the neighbouring rental homes are charging for properties of a similar size. This research can help you set weekly, nightly and monthly rates. There should be no discrepancy regarding rental rates and your guests must know how much they need to pay as well as the minimum time of stay.
Step 8: Put everything into writing
With an attorney’s help, put down all the rules and regulations into writing. This will help protect you and your guests from potential disputes. Make sure you also screen the guests before accepting reservations. It is best to have a property manager who can help you in these tasks.
A vacation rental is a great source of income provided you familiarize yourself with the industry and the rental processes.