Purchasing a Spokane vacation home can be an exciting idea. It can be your personal vacation spot, and you can rent it out to others to cover expenses throughout the year. However, anyone who’s owned and rented out a vacation home will tell you it’s not that easy. Truth be told, there’s a lot more to owning vacation rentals than meets the eye. Prior to committing to vacation rental ownership, you should conduct all the pertinent research.
Pro: Extra Income & Tax Breaks
One of the best outcomes of owning a vacation rental is the extra income you can earn from renting it. 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 set it up in a way that the property can pay 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. All of these are essential details to take into account when planning a vacation rental ownership. 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
You are in charge of your vacation home, so you can do whatever you please. This is a great perk when you visit the location frequently. You won’t have to stay at a hotel! 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. It becomes a daunting task, especially when you intend to rent it out for days or weeks at a time. Because the turnovers are frequent, you need to find enough tenants to rent the home year-round.
Pro: Building Your Retirement Fund
Rental real estate is a wonderful way to see growth for your retirement fund. Rental property owners often include their rental income or property sale into their retirement plans. Real estate gives you both safety and growth, unlike the volatile stock market or savings account with little interest.
Con: Property Management Takes Time
Owning a vacation rental is no joke — it requires property management, and it will take years before being able to see the rewards of the investment. How much more if you have to keep the property clean and maintained by yourself, or if your vacation rental is significantly far from 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.
There are many benefits to renting out a vacation home. With the right property management company, you can avoid the most common mistakes encountered by new investors. Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Spokane County has a top-notch team of Spokane property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 509-462-1042 today!
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