How to Look for the Best Location for Your Vacation Rental
The slump in home values has paved the way for a boom in the rental industry. Affordable properties are snatched here and there by investors and homeowner alike and turning them into moneymaking vacation rentals. Unfortunately, new comers are easily susceptible in making mistakes, starting with the location. So to steer yourself away from less-than-popular vacation destinations, here are some tips on how to choose the perfect location for your rental investment.Choose a vacation hotspot.
One thing you must secure is long-term viability of your vacation rental. To do this, you must first look for available properties in some of hottest destinations in the country. For instance, resort communities are certainly desirable. Mountain regions are also popular for outdoor vacationers and usually experience an influx of travelers all year-round.
Choose a multi-season destination.
While resort communities are popular in summer and probably late spring, destinations that are multi-season can help keep your vacation rental busy regardless of the season. Make sure that the destination offers plenty of recreational options for travelers visiting in any parts of the year.
Choose a location where property appreciates.
You should be forward-looking and make sure that the property will build equity in the future. Although not expected immediately, future gains due to equity is fairly beneficial. This will allow you to expand your investments and purchase other properties; and one way to do this is to make sure that the property will appreciate.
Choose a rental close to your home.
If you''re a first-time investor in the rental industry, opting for a rental property closer to where you live, i.e. another city within the state or a neighboring state, is cost-effective and advantageous. You can easily monitor the home and address any repair and maintenance issue immediately. Sometimes the main hurdle for rental owners is having to waste money on transportation like airfare or gas, in order to properly manage the property. If you want to avoid this, make sure that you purchase near your home.
Choose a property where you and your family and friends will go, too.
Your personal opinion and those around you also matters when choosing a location where you''ll buy your vacation rental. Ask your family and friends if they''d be willing to visit the location by any chance. It is important to put yourself in the traveler''s position and ask: do I want to go here or not?
Mark Michael Ferrer