Tips For Buying A Luxury Rental

Posted on: 26 January 2017

Investing in a luxury home as a rental property requires more than just choosing a home in a desirable zip code. Those that rent luxury homes are often hoping for all the bells and whistles that make these homes desirable, as opposed to owner residents that look at location first because they know they can eventually renovate the home. This means you need to look at the homes with the eyes of a renter while also making sure you can get a return on your investment. The following tips can help.

Tip #1: Check the view

Many luxury homes are such because of where they are located. This may be on a waterfront, near a golf course, or with a sweeping view of the city skyline. Whatever the desired view is, make sure the home you choose has a clear view or is within walking distance of the desirable location if you want demand the highest rent possible. For example, a home in a mountain estate should have a view of the mountains, while a luxury home in a golf community should be right off the course.

Tip #2: Choose open spaces

Most people associate space with luxury. This means vaulted ceilings and large passages between rooms. An entry that opens into a grand foyer is more likely to woo in a renter than an entry right off the main living room. A large open plan kitchen can bring in higher rent than a narrow galley. The feeling of space should carry through the whole house, from bathrooms to bedrooms.

Tip #3: Pay attention to the details

The details are also important. This means that a luxury rental needs to have granite instead of formica counters and tile instead of linoleum. In many ways this is good for you as a landlord, as well, as these materials are more durable so better suited for a rental if the rental brings in high enough rent to make the increased costs of these details worth your while.

Tip #4: Check the amenities

Many luxury homes are part of housing estates or communities that provide other amenities. These could include clubhouses, beach access, guaranteed tee times, or community pool memberships, for example. Make sure you as the homeowner are allowed to extend the use of these amenities to your tenants. This will usually be up to the HOA for the community, but in some cases you may need to pay a fee for access. Most potential tenants will have no interest in renting a beach home unless they have beach access, after all.

For more help, contact a real estate agent that specializes in luxury homes.