Renting Your Vacation Home
Do you find yourself not using that golf course cottage or mountain ski lodge as often as you might? However, you just cannot bring yourself to put it up for sale because the property has been in your family for generations.
Or maybe its value continues to skyrocket.
No matter the reason, you may want consider renting your vacation home.
Renting is a great way to offset the mortgage, maintenance costs and taxes incurred.
If you are shrewd, renting your vacation home can turn a negative into a positive cash flow.
Rental Price Are you ready to do some research? The number one error made by families new to renting their vacation homes is setting a rate competitive in their market.
A good rule of thumb is to use your monthly mortgage payment as a weekly rental fee.
After 12 weeks of renting out your vacation home, you have paid the mortgage for the entire year.
Incidental costs vary, so you may have to rent the property for another four weeks to pay for those expenses.
Now that you have the amount you would like to charge, compare it with other rental prices in your community for a similar property.
Pay attention to special amenities, proximity to attractions and rates for peak season.
Advertise! List it and they will come.
Take advantage of all avenues to advertise your vacation home.
The Internet is one of the most important ways, but often not the only way to rent your property.
Local classified ads, real estate agents and even the Chamber of Commerce are often untapped resources for landlords.
The Renters As a new landlord, you may be subject to state and local laws that govern renting your vacation home.
Check with the state attorney general and the local Chamber of Commerce for any regulations that may apply.
Establish rules for prospective tenants.
Communicate these clearly in your listing and reiterate it to them when the guests arrive.
List these expectations in the rental agreement to protect yourself and your investment.
Be sure to post contact information for you, your repair person and cleaning service in several obvious places throughout the residence.
Numbers for police, fire and medical services are always a good idea.
Finally, make sure to designate an emergency contact to handle issues if the renters cannot reach you.
Or maybe its value continues to skyrocket.
No matter the reason, you may want consider renting your vacation home.
Renting is a great way to offset the mortgage, maintenance costs and taxes incurred.
If you are shrewd, renting your vacation home can turn a negative into a positive cash flow.
Rental Price Are you ready to do some research? The number one error made by families new to renting their vacation homes is setting a rate competitive in their market.
A good rule of thumb is to use your monthly mortgage payment as a weekly rental fee.
After 12 weeks of renting out your vacation home, you have paid the mortgage for the entire year.
Incidental costs vary, so you may have to rent the property for another four weeks to pay for those expenses.
Now that you have the amount you would like to charge, compare it with other rental prices in your community for a similar property.
Pay attention to special amenities, proximity to attractions and rates for peak season.
Advertise! List it and they will come.
Take advantage of all avenues to advertise your vacation home.
The Internet is one of the most important ways, but often not the only way to rent your property.
Local classified ads, real estate agents and even the Chamber of Commerce are often untapped resources for landlords.
The Renters As a new landlord, you may be subject to state and local laws that govern renting your vacation home.
Check with the state attorney general and the local Chamber of Commerce for any regulations that may apply.
Establish rules for prospective tenants.
Communicate these clearly in your listing and reiterate it to them when the guests arrive.
List these expectations in the rental agreement to protect yourself and your investment.
Be sure to post contact information for you, your repair person and cleaning service in several obvious places throughout the residence.
Numbers for police, fire and medical services are always a good idea.
Finally, make sure to designate an emergency contact to handle issues if the renters cannot reach you.
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