Love to go on Vacation?

WHY RENT WHEN YOU CAN OWN YOUR OWN VACATION HOME?
  

Do you love to visit a particular area? Tired of having to find a place to rent when you visit? Sick of paying more for a week than you do for your monthly mortgage? If you said yes to any of these, than consider buying a vacation home as an investment. Relieve the stress of going on vacation, by being able to stay at your own home when you go out of town. Even better, you can rent out your home while you're not visiting to cover your cost. Sounds amazing! Check out this list of things to consider before buying a vacation home!


Gross Income
Most vacation destinations are seasonal. For example, the season for the Great Smoky Mountains runs from about mid-March to December. January and February are typically slower months. However, there is always so much going on that people generally visit this area year round. You just have to remember that you won't have a renter every day of the year. You need to plan accordingly for slow times, so that you won't be caught with a payment due and no income coming in. 
Management Fees
There are several options for renting out your vacation home. A management company will take a percentage for each rental and there are often hidden fees. You can also rent your home yourself using a company such as booking.com, VRBO.com, or AirBnB. These programs also take a small fee for their services. Keep in mind that if you rent it yourself, you will also need a cleaning company and maintenance plan.


Repairs/Maintenance
There is always going to be repairs that comes up.  These repairs and general maintenance might be harder for out of town owners to manage if you do not have some reliable and dependable to check on and repair items in your home. Consider paying for someone to inspect your home once a month and make needed repairs, if you are not planning on visiting often. 


Taxes/Utilities/Insurance  
Make sure to take into account all the additional costs it takes to run a home. Make sure you are saving for yearly taxes and homeowner insurance. Also, when considering how much you can spend each month, make sure to factor in utilities. 









When considering whether or not to buy a vacation home, it is best to consider a rough estimate to decide if you are going to have to spend money out of pocket. An agent who knows the area where you are thinking about buying your vacation home can make the process easier. They know the area and what locations are best to ensure success for your investment. Additionally, they are familiar with the rental procedures in the area and can direct you on the best path to take for maximum rental income.


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