February 14, 2023

Unlocking the Key to Financial Success: Exploring the Benefits of Vacation Rental Investment in 2023

by Alices Home
Exploring the Benefits of Vacation Rental Investment in 2023 - Alices Home

Unlocking the Key to Financial Success: Exploring the Benefits of Vacation Rental Investment in 2023

Alices Home
February 14, 2023
Exploring the Benefits of Vacation Rental Investment in 2023 - Alices Home

Table of Contents

 The recent climate shows a strong preference for a vacation rental in Airbnb properties rather than traditional hotels. Investing in a vacation rental is a great option for investment success.

As the pandemic situation recovers, more people are keen to discover more of the country and world around them.  However, they may be seeking a more custom, localised option than a traditional hotel.

Vacation rental investment properties have many features like any other property investment, and many more that differ.

Exploring the Benefits of Vacation Rental Investment in 2023 - Decide where to invest

Decide where to invest

With both types of property investment, you need to make sure you do your due diligence. Your property must be in desirable location to attract guests easily. Other factors to consider are market conditions, employment rate, weather, proximity to certain amenities, demand and supply. A search on Airbnb will show you the most popular regions in your state.

One of the main reasons to choosing Airbnb over traditional hotels is because of the local appeal (appearance, locality, vibe) and home owners’ genuine involvement with guests. Therefore, it is advisable to select a property in your local area, or close by.

Understand how the Rhythm of Vacation Rentals

This is where vacation rentals differ from other investment rentals. Vacation rentals are often booked out according to the season. It makes sense that vacation rentals near the beach are rented out in summer while those on the ski slopes are busy in winter.

Vacation rental property managers will be able to assist on what rental rate is acceptable to charge in the various seasons for that location.

Other than just reducing the rental fee, it’s a good idea to have other ideas for the property in the quieter months.  For example, you might promote the property to long-term tenants.

Consider your outgoings

Outgoings will include items like cleaning fees after each guest, marketing, property insurance, maintenance and so on. 

A short-term property management organisation will be able to organise all these for you. In other words, get them done and invoice you so you won’t need to do it all individually. They will also ensure you are charged a competitive price for quality services, saving you a lot of time and money.

Consider that you can access considerable savings by using the same company for more than just one service.

Laptop and mobile with Alice's Home Listing Page - Listing Platform

Marketing your property

Marketing your investment is one of the most important steps to collecting bookings.

Firstly, have a look at Airbnb – with no fees to list, it attracts the most traffic among vacation listing websites.  But if there is not much site traffic in your area, its best to list elsewhere.

Other platforms include VRBO, HomeAway and VacationRentals.com. These three sites have millions of listings worldwide and a hefty annual fee.

You can also create your own website, which will allow you the ability to list as many pictures as you like, and fill in information that falls “outside the square” provided by other platforms.  You can even load video to tempt visitors.

Advantages of vacation rental investment

There are several advantages to owning a vacation rental property.

  1. More Income: The first and most attractive benefit of vacation rental investments is more income. The more properties you have, the more the income multiplies.

  2. Your Own Vacation: Depending on its location, it can provide a vacation spot for you too.

  3. Tax Write-Offs: Your vacation rental will collect tax write-offs including the expenses for maintaining, repairing, and improving the property. These write-offs include cleaning, supplies, insurance premiums, mortgage interest, and property management fees.

A vacation rental investment can provide a great many benefits and opportunities for additional income.  However, it’s not enough to jump in headfirst without a plan. Speaking with a short-term vacation property manager will help you to answer many of your questions to find the location most lucrative. They can market the property to collect the guests and then generate a list of your expenses too.

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