Investing in real estate is a great idea, and one of the many ways that you can invest is by acquiring vacation rental properties, which can be high-paying, in-demand properties with great short-term tenants.However, the picture is not all perfect, so you should make sure you do all of your due diligence before investing. Specifically, beware of these 4 vacation rental cons before investing. Of course, these might not be deal breakers for you but you should at least know about them.
However, the picture is not all perfect, so you should make sure you do all of your due diligence before investing. Specifically, beware of these 4 vacation rental cons before investing. Of course, these might not be deal breakers for you but you should at least know about them.
Beware Of These 4 Vacation Rental Cons Before Investing
Con #1. Specific Location
Most vacation rental tenants will want to be somewhat close to a specific vacation destination.
For example, if you own a vacation property in a large ocean-side city, your tenants will want to be closer to the ocean. Some may even prefer to be walking distance from whatever landmark or destination that attracted them to the city in the first place.
For that reason, when you invest in vacation rental property, make sure that you choose properties that are close to a tourist area.
Con #2. Higher Priced Houses
Location can determine demand, and a high-demand property can cost more money. So make sure you factor that into your budget before investing – do you risk buying a cheaper house further away from the tourist area and hope your vacation renters will pay to stay there and drive across town?
Or, will you pay more for vacation property close to the landmark because that’s where our renters will prefer to stay?
Con #3. Furnished
Unlike long-term residential tenants who want to live in a property for years, vacation renters are coming for a short term with just their suitcases. They need a property that is fully furnished – with beds and couches, but also linens, towels, and cutlery. This can add an additional cost up-front but you can’t NOT have it with a vacation renter!
Con #4. Frequent Cleaning
Vacation renters pay more and stay shorter time than a residential renter. And that can be a good thing but it also comes with a downside: frequent cleaning. You’ll need to clean up the property in between renters and that can take time, especially if you’re cleaning the whole house every week.
Owning a vacation rental property can be an amazing and lucrative investment. However, make sure you beware of these 4 vacation rental cons before investing and plan for them so you aren’t taken by surprise