Tips and Tools for People Who Want to Start a Vacation Rental Business
If you’re looking for an investment opportunity, a vacation rental property can be a fun and lucrative option. However, the way you set up your real estate venture will determine how successful it will be. Strategic planning early on in the process will help save you stress later. This resource guide from Triumph Property Management covers some tips and tools to help you get off on a positive note.
Get a Marketable Property
Use these resources to find a property that will rent easily.
- Research various waterfront properties, which are popular among vacation renters.
- Look up popular vacation rental locations.
- Consider your target audience. For example, if you’re marketing to couples or singles, their needs will be different from the needs of a family.
Prepare for the Administrative Component of Purchasing a Property
Check these items off your to-do list to make your real estate purchase a breeze.
- Get the documents you need for a mortgage, like pay stubs and employment letters.
- Schedule a home inspection to make sure there aren’t any major faults with the property.
- Negotiate the closing costs, which can typically add up to 3% of the total purchase price for buyers.
Invest in and Market Your Property
Follow these steps to make your property as marketable as possible.
- Add value-boosting upgrades, like expanding the kitchen.
- Invest in in-demand amenities that renters love, like a good coffee maker and TV.
- Take great real estate photos to show the property in its best light.
Set Up the Business Side of Your Real Estate Rental
Vacation rentals are a business and should be operated accordingly. These resources can help.
- Set up a business bank account to handle all of your property-related finances.
- To simplify bookkeeping and tax filing, invest in accounting software.
- Make sure you’re paying the requisite taxes on your real estate earnings and claiming all available deductions.
- To better facilitate payment, especially when dealing with contractors hired for repair work, use this free invoice template and include your business name and logo.
It takes time and money to set up a thriving vacation rental business. However, if you put in the effort upfront, you’ll save yourself stress later. The resources above can help guide your startup process and set you up for investment success.