With the rise of companies like Airbnb and VRBO, there’s never been a better time to be a landlord in a desirable location. Even if rental prices are skyrocketing, tenant levels are lagging, or units are becoming more difficult to fill, if you’re in a vacation hotspot, you can always rely on travelers looking for a place to stay.
They appeal of vacation rentals is increasing for a variety of reasons. Hotels and resorts can be very expensive, and a rental apartment or condo often offers the same (or better!) accommodations for a more reasonable price. Rentals also offer a variety of central locations near attractions in more intimate settings where hotels just can’t exist or compete. Additionally, many travelers prefer something a little more private and off the beaten path, where they can prepare their own meals and enjoy time relaxing at their own pace without the hustle and bustle of resort life.
For all of these reasons, it’s a great idea to consider whether any of your properties or units can be converted to vacation rentals, either permanently or temporarily for high seasons. While these sorts of rentals offer a lot more versatility, there are a number of things to consider. Tenants will have a high turnover rate. You’ll have to decide on pricing for high and low season, as well as minimum and maximum stay for renters. Double-check your insurance coverage to make sure vacation rentals are included in your plan. It’s also advisable to consider drafting up a rental agreement, even if it’s only for a few days or a week.
It’s vital to establish a renter-landlord relationship early. It’s reasonable to list your requirements of tenants, ask for a safety deposit for cleaning or damage, and ask for the partial or full rental payment before the renters arrive. You’ll want to make sure the payment clears, since it can be a big hassle to deal with chasing down temporary vacationers after the fact, especially when they’re from out of state (or out of country!). Just because they’re on vacation doesn’t mean they can treat a rental apartment or condo as if it’s a standard hotel room. We also advise putting measures in place to keep other tenants happy – if your unit is regularly hosting rambunctious partiers that bother the permanent tenants, it may land you in hot water.
For help with planning for a vacation rental or advice on which screening services you can use to ensure you’re getting the best tenants, contact us here at Tenant Screening Center! We have tons of experience and are happy to help you out.
Landlords Property Managers Contact TSCI