Renting out your vacation home is a great idea to make some extra cash and utilize your Jersey Shore home when you’re not occupying it. But do you know where to get started? Keep reading to learn just what you’ll need to know before choosing to rent your home.
A rental company can handle several aspects of the rental process for you, but it comes at a price. A management company will handle marketing, bookings, and even cleaning up after tenets. The price for this sort of service is usually 20-50 percent of what you’ll make from the rental. Decide if this is a cost you’re willing to pay.
Do Your Math
Look at your potential expenses, mortgage costs, maintenance fees, cleaning, taxes, etc. While your vacation rental may be a good way to make some money, it isn’t a simple exchange of rental fees that will go straight into your pocket as a homeowner. Sit down and consider every expense before heading forward.
Vacationers love websites like Airbnb.com and VRBO.com. These sites are great ways to market your rental and will handle credit card payments, etc. If you chose to go this route, do your research to find the website that will be the best fit for your rental. There is a fee for using these sites, but many homeowners find that it’s worth the minimal cost.
Great Photos and Write Up
You may know that your little cottage is a great location with access to restaurants and within walking distance to the beach but if your website doesn’t say that, then renters won’t know. Same goes for photos; hire a professional to take amazing photos of your rental home. Vacationers chose rentals solely based on these photos and descriptions.
Insurance and Legal
Don’t assume that your homeowner’s insurance will cover your new rental business. Check with your insurance company to ensure you’ve got the right coverage before starting your rental business. Also, none of these tips will matter if your homeowner’s association doesn’t allow short-term rentals. Check to ensure that your rental is within local legal limits.
Your vacation rental must look great. If it has dated décor or doesn’t look appealing to renters, they won’t want to book your home. Consider hiring a decorator to make it more appealing to travelers.
Premium Cable and high speed Wi-Fi are necessities to most vacationers, make sure your rental has both. Toilet paper, paper towels, and trash bags are other things that you may not consider when preparing your rental, but if they’re missing you can be sure to get bad reviews. Games, gaming equipment, and amenities like pools and hot tubs are other great amenities you may consider investing in for your rental.
You can’t expect renters to clean up after themselves. You must have a plan in place for quick and thorough cleaning in-between visitors. A management company will coordinate this. If you chose to manage your property yourself, you’ll need to coordinate with a cleaning company yourself.
You’re in Charge
Have a clear rental agreement for renters to sign. Clearly stated rules are harder to break. Will you allow pets? Can smokers smoke in your home? Make sure your rental agreement is solid and that you screen tenants. Get names and addresses for all of the people who will stay in your home. Speak with renters to get a feel for who will be staying in your home and what their plans are for their stay.
Be quick at responding to inquiries. Renters are likely to book the first rental that responds to an inquiry. Make sure you’re responding as soon as people show interest.
Do something to set yourself apart. Not only will this ensure that your rental stands out on websites, it will also get your rental some great reviews. Personal touches in a rental make a home stand out from others, and could even ensure repeat business.
Although there are lots of things to consider, renting your home when you aren’t using it is a great idea. Just keep these tips in mind and approach the process with all the information necessary to make your rental a success you’ll be glad you did.
Don’t have a vacation home yet? Let TheFerzoco Group help you find your home away from home.