Posted on: 29 May 2019
Many, many people buy vacation homes with the intent of spending a few weeks per year in the home, and then renting it out the rest of the time. Some of these people end up making a profit, while others end up losing money. What's the difference? Primarily, the difference seems to be in the homes they choose to buy. So how do you know that a particular vacation home is going to be a great investment? Here are a few signs.
1. The home has en-suite bathrooms.
When people go on vacation, they often go with other couples or family members. All of these people won't want to share a bathroom, so they will probably look for vacation homes that have multiple bedrooms with en-suite bathrooms. If a vacation home you are looking at has several bedrooms with attached baths -- or perhaps is laid out so there are separate wings, each of which has a bedroom or bathroom -- that home will be an excellent rental. It will be rented out more often, and you can charge more.
2. The home is near some hot attractions.
Before you seriously start shopping for vacation home in a certain area, go on TripAdvisor and see what the top-rated attractions are in that area. If the home you are thinking of buying is within walking distance (a half mile) of one of these attractions, it is a good buy. If it's within walking distance of multiple attractions, that is even better! People who visit and rent your home will want to be within easy reach of these attractions, as this can save them from having to rent a car, so your place will be in high demand.
3. The neighbors are also renters.
If the homes on either side of the home you're thinking of buying are also rentals, that is a good sign. It means that rentals probably do well in that general area. You also won't have to worry so much about your vacationing renters disturbing neighbors who are permanent residents trying to go to bed early and go to work each day. On the other hand, if none of the other homes in the neighborhood are rentals, that might be because it's not a good rental area.
Investing in a vacation home for sale can be a smart choice, but it needs to be the right vacation home. Keep an eye out for the signs above that you have found "the one."Share