Published On: Thu, Jul 6th, 2017

More Vacationers are Interested in Rentals

Investing in a vacation rental can be an exciting prospect as an investment and additional stream of income. It also builds equity. Of course, you want to completely understand why your intended location would be of interest to vacationers.

Purchasing a vacation home in an isolated setting may seem ideal for those looking to get away from it all, it may also limit its potential as vacationers also want access to shopping, activities and more.

photo courtesy of Greenberg Health

Plus, you may not live in the area, so, you will have to find someone to manage the vacation property. This can be a daunting task, searching for an experienced property manager. According to iProperty Management, you will have to do a bit more research on a property management company to look after your vacation rental.

Although, once you’ve found the right property management company, you can expect the potential for a flourishing business with the right mix of location, amenities and price.

  1. Choose Your Location Wisely

Vacationers want access to local amenities without having to drive out of the way. This is why it is critical for vacation rentals to have a good proximity to popular activities such as fishing, golf, swimming, trails, resorts and more.

Then, there are the physical offerings to consider such as living spaces, bathrooms, kitchens and bedrooms.

It helps to research the top types of vacation rentals and what features they have to offer. It also helps to purchase a vacation rental far from your principal residence, and hire someone to manage it for you.

You don’t want renters knocking at your door, at all hours of the night.

2. Keep It in a Business Zone

Since vacation rentals have become so popular, it is imperative to check with your city about regulations and zoning. To illustrate, according to the Bozeman Daily Chronicle, city commissioners in Bozeman are moving forward with regulations that will no longer allow new vacation rental home in residential zones where owners don’t live at least half-time.

What they will allow is homeowners who can rent out rooms and their entire residence, when they are temporarily absent. The city designates R-1 and R-S zoning for its low-density neighborhoods, and owners need to be present for rentals.

As you can see, many cities are cracking down on vacation rentals in residential zones. This is why it is highly important to ensure your rental is in compliance with all regulations and zoning rules.

3. Vacation Rentals Are on the Rise

An increasing number of travelers are shunning hotels for vacation rentals. They like the idea of living in a real home, cooking their own food, sleeping in comfortable bed and having all the amenities of home even on vacation. Plus, they enjoy the experience of staying in a new home on each trip.

In addition, according to Bloomberg, luxury vacation rentals are also increasing in popularity. The demand keeps getting higher that AirBnB is now planning to launch a rental service for mansions, mega-homes and penthouses.

They will start with test markets and expand it more broadly, if successful.

AirBnB is already testing AirBnB Select, which measures rentals for consistency such as inspecting homes. Earlier this year, AirBnB acquired the Canadian company, Luxury Retreats–which, offers over 4,000 villas and vacation homes.

Since AirBnB takes a percentage of the cost of each booking, more expensive rentals would generate better profits for the company.

As you can see, the demand for vacation rentals are on the rise. This makes it a good time to start researching your investment rental property.

Author: Carmelo Hannity

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