Creating a beautiful space for guests is one of the easiest ways to make money with your vacation rental. Not only does this improve the guest experience, but it's also key to good marketing. If your guests post images of themselves in your home on Instagram, then you're doing well. While any investment comes with a certain amount of risk, owning a vacation rental property can be rewarding and profitable.
To make sure you don't forget anything important, it's a good practice to follow a reliable lodging checklist when stocking up your vacation home. Income earned from your vacation home may be taxable based on how often you rent space compared to how often it is occupied for personal use. However, before jumping into a vacation rental, it's important to identify the best vacation rental markets, calculate the numbers, and research local trends and regulations that could affect a vacation rental investment. Be sure to mention nearby attractions and the advantages of staying at your vacation home in your listing.
Imagine that you want to go on vacation and want the extra space of a vacation rental or a full kitchen. The best part of investing in vacation rentals is that good guest reviews make your home more lucrative over time. Managing calendars, bookings, profiles, and requests across multiple vacation home sites can quickly become one of your most tedious responsibilities. Today, many real estate investors are considering buying a vacation rental to potentially benefit from the post-pandemic travel boom and the growing trend in demand for vacation rentals.
Demand for your vacation home can change based on weather, market patterns, local events, and regional competition. If you plan to invest in vacation rental properties to rent as a vacation home rather than as a real estate investment, you'll need to conduct more in-depth market research. The main expenses you should consider and include in your calculations are your service fees, insurance rates, cleaning fees, property repair or maintenance costs, vacation rental management fees, supply replenishment, taxes, and the costs of marketing the vacation property. Renting vacation real estate involves much more than just buying the property and making people pay you to stay there.
The most important consideration when buying a vacation rental is to work with a real estate agent who knows the short-term vacation market. For generations, my husband's family vacationed in Southwest Michigan and would camp or rent a house if they could find one available.