Buying a vacation rental is a big decision, and it’s a good idea to make sure you’ve done your research before making such a large commitment. Here are some important things to consider before buying a vacation rental.

Location

The most important item that you should consider before buying a vacation rental property is location, location, location. Is there a high demand for your vacation market? Are you close enough to shops, cultural sites, tourism destinations, maintenance companies, and grocery stores?  Considering questions such as these will help you find the best place to purchase a vacation rental. Although properties in high demand areas will be more expensive, the return on those properties is much greater.  Location is more important than initial price. 

Rental Income

In order to buy a vacation rental, many homeowners will have to take out a second mortgage. Because of this, it’s important to make good financial decisions, such as making sure that the rental property can cover its own monthly costs. Consider how much rental income you can reasonably generate, and if it can offset your mortgage.  In the vacation market, there will most likely be an “offseason,” or a time of the year when renting is slow.  As the owner of the property, you must find a way to maintain your rental income, whether that is through ensuring continual renters, charging enough during the busy seasons that you can cover some decreased costs during the offseason, or both.  

Added Maintenance Costs

Oftentimes vacation homes are located in expensive areas.  “Expensive” areas could be areas that are more remote (i.e. mountains, wilderness, and national parks) or areas with high population and desirability, like beaches or big cities.  Regardless of the area in which your vacation home is located, maintenance costs will likely be much higher than in an average neighborhood. Scarce contracting resources in remote areas, or high contracting overhead and demand in high populated areas are contributing factors to this.  Recognizing that maintaining your vacation home oftentimes can be more expensive than maintaining your primary home is important before buying a vacation rental.

Home Styles

The style of your vacation home can impact its popularity among renters. Popular home styles in the United States include colonial houses, farmhouses, Victorian homes, Cape Cod homes, mid-century modern homes, and craftsman homes. Beach houses and cabins are also quite popular among vacationers. You might consider buying a home and remodeling it to fit one of these popular styles. You could also choose to build instead of buying. When you build a home, you get to choose from a variety of custom home styles. The flexibility that comes with building a custom home can be a great asset.

Amenities

One factor in ensuring that your vacation rental has enough renters is making sure that your house has the amenities that your target market desires. It’s a good idea to research the needs and wants of your particular target market. For example, a beach townhouse will not have RV and ATV parking areas, and a cabin might not have the same amenities as a beach house. It’s important to make sure the house has what the people want. While you might want to consider buying a home that has specific amenities suited to the needs of your target market, there are several amenities that generally appeal to most people. A pool table, hot tub, and TV are generally safe bets for vacation homes. If you want to attract renters, put money into the amenities.  You want to give renters something that they wouldn’t get at home.

Marketing Strategies

As the vacation rental market is becoming more popular, it’s likely that you will have a good amount of competition. There are hundreds of properties on all the major listing sites, and it’s not always easy to get your property to stand out from the crowd. Before buying a vacation rental, you should take some time to lay the foundation of a marketing strategy that can help you drive traffic to your vacation home. You can find renters better as you create an attention-grabbing listing, and advertising your properties on several online platforms. You should also research property promotion and pricing strategies before buying a vacation home.

Taxes and Interest Rates

Taxes and interest rates vary by location.  A vacation home in California is much more likely to have higher rates than a cabin in the woods of Idaho.  If money is tight and this is your first location home, pay close attention to taxes and interest.

Laws and Regulations

There are laws and regulations that govern the vacation rental market. These rules will vary depending on the local laws for each location. You should make yourself aware of these rules before you buy a vacation rental, as these local laws could highly impact your decision. General rules that apply to most locations include obtaining a permit and business license, obeying taxation rules, safety regulations, and insurance regulations.

Continuous Cash Flow

Because purchasing a vacation rental is a big investment, it’s a good idea to calculate your expected cash flow before you commit. You should do some market research and talk to other vacation rental landlords and business professionals. Try to get an idea of the amount of vacation renters in your prospective area. Making sure your vacation rental will be regularly frequented with interested renters is one important factor in the success of any investment. You should also try to estimate the number of needed repairs and maintenance for your property. If your property will cost more money than it brings in, it’s clear you will have a problem with continuous cash flow.  

There are many benefits that can come with investing in a vacation rental property. It’s a great way to supplement your income, cash in on tax benefits, and increase your enjoyment. Considering these few ideas before making that investment will help you make an informed and intelligent decision.

Here’s another article you might like: 3 Cost-Saving Tips for Vacationing with Your Family

Do-it-yourself projects have become a popular hobby over the years. While they can sometimes be cheaper than hiring a professional, they aren’t always what they are cracked up to be and can end up just being a band aid that covers up an even bigger problem.Not only can a DIY project be more work than it’s worth, it could also be damaging to the environment and make your home less green than you want it to be.

Making Waste

A DIY project takes various materials, whether it be raw or repurposed materials to create something new. However, it can lead to a lot of waste. If you’re doing a DIY project that involves paint, there’s a chance you can spill that paint, which could be potentially dangerous for the soil, if you’re painting outside. Even after the project is finished, there may be potential leaks or spills from the finished project which could also be bad for the environment.

Improper Installation

Another way in which DIY projects could be making your home less green is the fact that many of them are installed improperly. Certain projects have a higher risk of going wrong when installed by the homeowner instead of by a professional. In fact, HVAC systems are only 55% to 70% of optimal compared to a properly installed one. This can lead to dangerous results not only for yourself, but also for your house and the environment. Plus, it can be expensive to repair damages caused by a project being improperly installed.

Being Irresponsible

In addition to improperly installed projects and wasteful projects, sometimes DIY projects are not responsible toward the environment. Instead of being focused on improving the environment or at the very least, not hurting it, DIY projects release dangerous fumes into the air, or expose live wires in the wall, or lead to spills that seep into the ground releasing poisonous chemicals into the environment. Being irresponsible with DIY projects could lead to potential harm of the environment, yourself, and others.

While do it yourself projects can be fun to do on your own, consider the negative consequences that they can pose. In order to prevent waste, improper installation, and being irresponsible, try to find DIY projects that improve the quality of your home and are eco friendly.

Here’s another article you might like: Go Green: Ways to Make Your Home More Environmentally Friendly

“Summer lovin’, had me a blast…” until the heat came and ruined everything. The summer heat can make you feel lethargic and want to lay around and be miserable. But don’t cancel all your plans just yet! There are still great ways that you can beat the heat this summer and enjoy your time both inside and outside. Scroll down to find out more!

Get a Pool

There are many benefits to having a pool at your home. In addition to being a lot of fun, a pool lets you cool off whenever it’s hot outside. Before you get a pool, you should educate yourself on the different types of pools out there, and the maintenance costs associated with them.

A salt cell pool has many benefits over a standard pool. A salt cell pool uses a salt chlorine generator. This means that you add salt to the water, and the generator converts it to chlorine. The salt you would use is actually very mild—only about 10% of the salinity levels in the ocean. A salt cell pool is very efficient in keeping your water clean, and it’s less expensive to use than traditional chlorine pools!

Air Conditioning

Air conditioning is a popular way to beat the heat in the summertime. Air conditioning can make long summer months bearable. Getting air conditioning will let you control the temperature for each room in your house, and allow you to set it at the precise level you like so that you can relax.

Helping you stay cooler is only one benefit of getting air conditioning. Other benefits of air conditioning include less insects and parasites, better sleep, improved work performance, and a decreased risk of dehydration. Investing in air conditioning is a great way to stay ahead of the summer heat and spare yourself from misery.

Drink More Water

Drinking water may seem unrelated to staying cool during the summer, but if it seems confusing, think of your body like an air conditioner. When your body heats up due to hot weather, physical exercise, or stress, you begin to sweat (that’s like your air conditioner turning on when the temperature gets too high). When you sweat, your body is using its coolant, so drinking water is important to refill that tank.

Drinking water is cost-effective and easily accessible for many people, so even if you don’t have the option to install a new pool or air conditioning unit, drinking water is a good way to stay hydrated and keep your internal environment from overheating.

Getting a pool, installing an air conditioner, and drinking more water are three great ways to stay cool this summer. Once you take steps to beat the heat, you can get out there and have a blast!

Here’s another article you might like: A Parent’s Guide For Breaking Out The Pool Toys