It's a dream I've heard so many people express: "I want to run a bed and breakfast. They are so cute" Or "I want to own a vacation rental property, so I can get a free vacation and make money
rest of
year.But what is really involved in being a vacation landlord? Is it a business that is right for you. I asked 9 vacation rental owners for their advice to would-be vacation rental owners.
"Can you afford
mortgage if your home is not rented at all?" asks Stewart Granville, owner of an Orlando Florida vacation homes listing site ( http://www.lastminutevillas.net ). "If interest rates rise (which they almost certainly will) can you still afford
payments along with
utilities ,taxes, insurance, management fees ,pool cleaning ,lawn maintenance ,running repairs – can you still afford it?"
That is an obvious, but often overlooked, factor. Before rushing into a purchase, make sure that it does not get repossessed if somehow your marketing is fruitless at first. Paul Rowney agrees. Owner of a 4-bedroom Florida Gulf Coast vacation rental ( http://www.lastminutevillas.net/villa/181/ ), he says to be wary of "realtors who promise you'll rent your property for 40 weeks a year." It helps to do your homework. Is there already rental saturation in
area you want to buy in, or are people already lining up for too few vacation homes?
"You can't get too personal with your home if you are using it for renting - you have to think what your client wants," warns Michelle Prince, owner of Secret Key Villa ( http://www.lastminutevillas.net/villa/166/ ) in Kissimmee, Florida. That means your ideas of
perfect bright red-orange kitchen might have to be shelved if your customers have more subdued tastes.
Andrew Piper, owner of a 5 bedroom vacation rental villa ( http://www.lastminutevillas.net/villa/332/ ) advises not to expect that all your friends are a market waiting to rent your vacation home – they are more likely going to hope for a freebie, staying silent if they are too embarrassed to ask. Remember, owning a vacation rental is a business, or else it becomes a very expensive cottage.
Of course, when it comes to décor, you can't please everyone. Sue Evans, owner of an Orlando luxury villa ( http://www.lastminutevillas.net/villa/276/ ), does not enjoy "having to read emails from people saying they don't like your décor or want to stay at your property for peanuts." You need a thick skin to own a vacation rental property.