Owning a Sandy Springs vacation home can be a marvelous idea. You can use it as a personal spot for times when you want to go on vacation mode, or you can rent it out to others so you can cover other expenses, as well. Nonetheless, anyone who has ever owned and rented out a vacation home will tell you that there will be hiccups along the way. There are other details about owning vacation rentals that you should know. Before you decide on a vacation rental ownership of some sort, make sure to dive deep into all the important aspects.
Pro: Extra Income & Tax Breaks
A big benefit of owning a vacation rental is the extra income you can earn from renting it out. Depending on whether you choose to rent it out short-term (days or weeks at a time) or long-term (several months at a time), you can arrange it in such a way that the property pays for itself.
Con: Another Mortgage Payment & Expenses
Of course, buying a vacation rental comes with a mortgage payment, insurance, property taxes, utilities, and other expenses. These details have to be taken into account when deciding on a vacation rental. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.
Pro: It’s Yours to Use
Being an owner of a vacation home means you get to do whatever you want with it. It’s a great way to save on money since you won’t have to spend on hotels! You can also use the property for business or personal events, meaning you won’t have to pay to rent event space elsewhere.
Con: Marketing and Screening Tenants
You will have to market your vacation home to potential tenants if you don’t intend to use it most of the time. Marketing can be a time-consuming task, as is screening potential tenants. This becomes more difficult when you rent the home out for days or weeks at a time. It will be a big task to find tenants who will rent year-round since the turnovers are fast.
Pro: Building Your Retirement Fund
One great way to contribute growth to your retirement fund is to invest in rental real estate. Rental property owners often include their rental income or property sale into their retirement plans. The beauty of the real estate is that it can offer safety and growth, unlike other investments like the volatile stock market or the savings accounts that give little interest.
Con: Property Management Takes Time
Owning a vacation rental will take a lot of focus and property management before being able to get a sizable payoff. It’s more of a challenge when you have to keep your property clean and maintained by yourself, or if your vacation rental is not close to your primary residence. Vacation rental owners will tell you how tedious it can be to prepare for each new tenant; something that, unfortunately, rarely happens with long-term residential rentals.
Owning a vacation home and renting it out can be a great investment. To make the most of your investment, consider hiring a good property management company! Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Greenway has a top-notch team of Sandy Springs property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 770-364-9668 today!
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