Owning a second home can be tricky. If you don’t use it very often, you may be inclined to rent it out. This can allow vacation homeowners mitigate the cost of maintenance and taxes during the off-season or times where you may be unavailable to use the house. Renting out your vacation home can yield significant financial benefits, but you have to do it correctly. See below for our top tips for renting out your home.
Figure out if the math works. Create a spreadsheet to analyze what it will cost you to rent out your home versus the income you can expect to generate making it a vacation rental. Calculate expenses such as maintenance, utilities, taxes, insurance, repairs, and amenities. Additionally, ensure you put additional money into your budget for preventative maintenance. Doing the analysis before beginning to rent will help you better assess how much renting the home can withstand.
Consider hiring a company. Managing a rental yourself provides a greater financial return and added convenience. However, it also means a lot more work. Consider using HomeAway, VRBO, AirBnb, or similar sites that offer online booking, calendars, email communication, and referrals to credit card processors and professional photographers.
Get professional photos. Potential renters will choose your home based on the photographs and the description of the property. Hire a home stager and professional photographer to get the best possible photos of your vacation home. Additionally, make sure your description is very thorough. Include every amenity, including balconies, cribs, available ski gear, and pots and pans.
Get insured. Regular homeowner’s insurance policies rarely cover vacation rental. Ask your insurance agent what type of policy you need for a home that is used for short-term rentals in your area.
Find and use a dependable cleaning crew. If your home is popular, you will have guests checking in and out at various times throughout the week. This necessitates a punctual and professional cleaning crew. If you don’t live nearby, hire a cleaning crew who can also look for and report any damage done by former renters. You may also need a lawn service and handyman for last-minute issues, such as broken toilets and sinks.