The National Association of Realtors (NAR) recently released a new study that looks at the markets for vacation and investment homes. Last year 40 percent of all homes bought in America were vacation homes and investment properties. That’s more than 3,000,000 homes per year!”
Vacation homes are finding buyers. According to NAR, sales of vacation homes in the U.S. boomed last year, even rising above their most recent peak in 2006, just before the housing crash. More remarkable is that in 2006, lending standards were very lax. Now, they are strict — yet sales have surpassed the 2006 high.
More and more, vacation sales are influenced by boomers moving closer to retirement and buying second homes to convert into their primary home in a few years. The rising stock market has enriched some and is a further influence toward the vacation home market.
Rob Stephens, writing for INMAN, has “4 things your clients should know before renting out their homes this summer”
Who’s in charge of renting? A property manager or the homeowner?
The first step is to determine whether to go it alone or to hire a property manager. Renting the property solo can be a great option, but it requires personal involvement. You will need to interact with the guests, keep track of scheduling, collect funds and follow up on any issues.
However, a property manager will handle all those details for you, but they will charge a commission, usually in the 20- to 35-percent range.
Advertise and price correctly
One of the most important areas to consider when renting a home is the best way to advertise the rental to reach interested travelers. Usually the large, established vacation rental sites, such as Airbnb and HomeAway, are an efficient and safe way to get started.
Price your property correctly, so you don’t price yourself out of the market. At a minimum, compare your property size and location to what other properties are charging for nightly rates in the area.
Save the headache and get compliant before renting
It’s important for rental owners to realize that in renting out their home they are running a small business. Running a business means there are regulations and tax issues to be addressed.
Build a reliable turnover staff
If you are planning to rent out the home on an ongoing basis and are thinking of doing the in-between work yourself, this might get old fast.
With reliable, professional turnover staff — cleaning crew, landscapers and pool cleaners — this work can be done quickly and efficiently.
Coal to Cash Homebuyers, Inc. is here to help homeowners out of any kind of distressed situation and potential home buyers find their dream vacation home. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 805-426-9988 to let us know what YOU need help with!