Interested in owning a rental property? Many investors who are interested in trying out real estate management balk at the idea of running a residential rental. After all, long-term tenant relationships can get messy, and it’s a lot to dive into blind. Fortunately, vacation rentals give you an opportunity to test the waters. You can practice picking a property, managing income, and developing relationships with renters – without the added responsibility a residential property brings. Here’s a look at how to get started:
Choosing a Property
The first step to a strong vacation rental business is finding the right property.
- Develop a relationship with an experienced real estate agency like BrownDaniel Group who can help you contextualize properties.
- If this will be your first investment property, start by researching the process to make sure it’s a good fit for you.
- Focus on location: try to balance proximity to attractions with privacy and seclusion.
- If you want to dip your toe into property renovation, start with something that needs simple cosmetic upgrades.
Marketing Your Rental
Help vacationers find you with strong marketing.
- List your rental on several vacation rental sites.
- Include attractive details, such as proximity to tourist attractions or amenities like a hot tub, clearly in your listing.
- Price your rental competitively and offer discounts when appropriate.
Protecting Your Assets
Keep your investment safe to prevent unexpected expenses.
- Install a security system to prevent the risk of break-ins.
- Establish a clear property damage policy in your rental terms.
- If you are open to longer-term rentals, consider running a background check on potential renters.
Vacation rentals are an excellent way to try your hand at property management and make some extra cash along the way. Keep these links on hand so you can choose, market, and protect your investment with confidence. You’ll be a vacation rental expert in no time.