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You love having a second home but the mortgage is putting a crater in your wallet. Many second homeowners prefer to lease their private property as a vacation apartment to help defray the costs of ownership. How do you price a vacation residence rental without overcharging but getting enough to meet your costs? Do your analysis.
Find out what other owners of, similar sized homes in the space are charging. You can ask a local real estate broker for a price limit, scan town papers or work online. Many vacation rental sites offer their property. These types of sites have endorsements from partners around the world and rates for the properties listed.
The time of year you rent out a property is important. If you want to rent out a ski lodge in Vermont. The month of August not your uptime of the year, but January will. Need to figure out what lengths you want to rent your property. A Florida property in July near the beach will go for top dollar for a week. However, that same property in January you might only tempt the snowbirds who prefer to rent at a lower price and rent out per month basis. Answer questions, “do I want to mess around with weekend or night rentals” and “is it worth the hassle”.
Vacation Home Rental Success
Figure out how many weeks you need to rent your property to make a profit or at least pay the bills. Say you need to make $12,000 a year in rental income. If, after looking at other rentals. A rate of maybe $1,000 a week reasonable than you know you need to lease the house out for at least twelve weeks a year. But to rent for a couple more weeks at a lower rate. To build up for off-peak times of the year. Or if not get someone to fill every vacant period.
Most significant, do not fail to spend spare time in your own home vacation. Keeping the house and not being prepared to enjoy it frustrates the purpose of getting that second home!