Investing in Vacation Rentals
I’m not going to lie, one of my favorite TV shows is HGTV’s Vacation House for Free. Each episode is in the typical HGTV format, where a client comes in with a ton of cash, looks at 3 homes and picks one, with amazing results. The philosophy is consistent, the right vacation home can cover its carrying costs through rentals during the peak season, leaving the house yours to use “for free” during the rest of the year. Can it work? Absolutely. My husband and I have one, and we are working on a second. How do you do you do it? There’s a few key elements:
1) At least 20% down. Possibly more, if you aren’t going to do a lot of remodeling.
2) Location, Location, Location. If you want strong bookings you need to be near a destination that will draw vacationers in.
3) Something Unique. In the sea of VRBO’s and AirBnB’s your rental needs to stand out. Weather it’s amazing views, proximity to a tourist destination, history, or amenities, you want your rental to be the one that people gravitate to.
4) Great Reviews. A great review is a badge of honor. Reviews give potential renters confidence to book your home. It takes time, but with honest marketing, a clean home, and flawless customer service, they will come.
I have experience finding vacation rental investments in the Phoenix, Scottsdale, Prescott, and in Munds Park (Flagstaff) areas. Call me if you are thinking about investing in a vacation home – I can help!