Whether it comes to a growing trend among Millenials to rent their homes instead of buying them, the proliferation of buy now pay later platforms and their consistently increasing users, or the profitable fad of homeowners renting out properties to vacationers who want to stay in their area, our culture has become increasingly bent towards rentals instead of purchases. The variety of economic and social factors that have led to this development are worth analyzing, but by the economists and sociologists out there observing this trend… We’re here to find out how we can use it to make money and lots of it.
With the real estate booming to such an extent that some experts fear another crash is incoming, among a growing trend of renters, we’re also seeing a rapid acceleration in property ownership and the subsequent trading of that property. While some are choosing to get involved in this real-estate shell game, gambling their hard-earned money and their futures on a market that may soon crash, others are choosing to take the rental market by storm, making wiser, more solid bets on an alternative to ownership that will still exist should the market crash. Moreover, with the recent government-mandated reopening of most states and cities, there’s a re-emerging tourist trade, with people who have been cooped up in their homes for longer than a year looking to get away for a bit. Therefore, vacation rentals are perhaps the best vehicle for a successful money-making enterprise.
Here’s what you need to know to step into the vacation rental market and cash in on this extraordinary time.
Location, Location, Location
Your first priority should be to narrow down areas where travelers are most likely to look for vacation rentals: while pursuing properties near major cities is always a safe bet, you’ll also want to look for property near cultural hotspots, tourist traps such as theme parks, and any other area that could become a tourist destination, such as a beach or mountaintop. Then you’ll want to look for properties in these areas that require minimum renovation and offer as much or more for renters than your standard hotel room. Chances are that converting any property into a vacation rental home will involve quite a bit of time and money, so if you need help renovating these properties (or obtaining them, as beginners in the investment game will likely need a lot of capital on hand) you might want to consider getting a vacation property loan from a reliable lender.
Once you have your first property in a high-trafficked area and it has been renovated to your expectations, the next step is to put it on the market.
Rental Platforms and Dealing With the Public
There are a plethora of websites out there that you can use to post your rental property and schedule incoming rentals, though you’ll likely want to use the ones that consumers are more likely to recognize and trust. Before you schedule your first rental, however, you’ll likely want to draft up an extensive rental policy that covers any potential damages the customer may inflict on the property.
The idea is to put the onus on them to keep your rental clean and properly maintained while they’re there. Coming back to holes in the walls, beer cans and pizza covering the floor, and yellow stains from smoking indoors on the ceiling isn’t ideal, and should it happen, you want to make sure you’re covered.
Your rental property is an investment and dealing with the public, you’re likely to encounter people who treat your investment like garbage because it’s not their home. Take measures to protect yourself against this, and you’ll be able to rent your property out again and again with minimal cleaning and maintenance on your part.
Cashing in on the Tourist Trade Responsibly
With the pandemic beginning to wane ever so slightly and the government deciding to reopen regardless, more people are looking to take vacations than ever. Investing in vacation rental properties is the safest investment you can make, as rentals represent a steady stream of income from the tourist trade in nearby cities. With that being said, be sure to protect your investment however you can, and you’ll be sure to rake in the money in no time.