Renting a Vacation Home
Tips for New Landlords
The economy has helped to turn the dream of vacation homeownership into a nightmare for many investors. If you’re considering turning a vacation home into a rental, or have already, here are some basic tips for new landlords that might come in handy:
- Decide whether to offer long-term leases or make your vacation property a vacation rental, with short-term agreements. Do your research and weigh both the downside and advantages of frequent turnover.
- Consider your tax situation when making your decision. Homeowners can rent their property for up to 14 days without reporting the income to the IRS, which can be helpful if your property is only rented during high-volume times in your area, like New Orleans at Mardi Gras. Consult a tax professional for advice.
- Consult an attorney to review your rental agreement and lease. Loads of information is available online regarding pitfalls to avoid and items to include in your rental agreement.
- Tenant screening is a must for short-or long term rentals. Investing a little amount of money in thorough background checks pays for itself in peace of mind and can prevent financial losses.
- Advertise wisely. It doesn’t have to cost a lot. Spend time online if you’re not familiar with social networking site—they’re ideal for advertising your rental. Setting up a Facebook page is easy. Upload photos and invite friends and family to comment and encourage their friends to visit your page.
- Check out vacation rental websites, and compare their rates and features. If you decide to run an ad, promote it through your Facebook page and Twitter.
- You can also use WordPress to set up a website. WordPress is known as a blogging site, but it’s become a fast and easy way to start a website. Hundreds of templates are available, the site walks you through each set-up step, and help is just a click away if you become stuck.
Making the decision to rent your vacation home is the first step to becoming a rental property owner. Check our archives and come back often for valuable landlord advice!