If you rent vacation homes you have possibly wondered about the advantages to owning one or even several. You can easily transition from renter to owner and there are many convincing reasons for doing this. There’s also important information to know in advance of making the decision to convert your property or invest in a second home for this purpose.
Why It’s a Good Idea
- Possibly the number one reason for owning a dual purpose home is that you can spend your vacations here and rent to others to pay for the home’s cost and upkeep.
- Vacation rentals are not like time share units: you block off the weeks or months you want to be at the home and make it available to others the remaining weeks.
- If you rent it out more than 14 days each year you can write off your expenses for maintenance and repairs.
- Over time and with the right investment, your property can increase its value.
- It might be a way to pay for a future retirement home.
What You Need to Know Before Committing
- Location is critical!
- You will have an initial cost for converting a home to a rental property.
- Depending on the home, it takes at least one month or longer to get it ready for guests.
- There will be marketing and maintenance costs as well as taxes and insurance plus unforeseen expenses.
- It can be a demanding experience unless you hire a manager to oversee marketing, cleaning, stocking, repairs, etc. Long distance landlords are not ideal when guests lock themselves out of the home or the hot water heater breaks.
- There are off seasons and shifts in demand that affect how often the home is rented.
Getting Started
- Choose a general location.
- Shop houses with a projected income in mind. Location and amenities such as pool, hot tub, etc. will impact your potential earnings.
- Be smart about HOA covenants as well as state and local ordinances that could affect your rental opportunities.
- After purchasing the home (if not before) we highly recommend you hire a manager or consultant to help you complete the start-up process.
How Arizona Vacation Home Rentals (AVHR) Can Help You
- We will provide you with a list of recommended items for all rooms in the house as well as a list of suggested improvements and amenities to increase the home’s appeal and rental fees.
- We will either help you with marketing or market the home for you. This includes but is not limited to professional photos, written descriptions and listings on the larger vacation rental platforms such as Vrbo.
- We can manage your rentals from start to finish allowing you to be an absentee landlord by:
- Securing guests and replying to inquiries and questions.
- Handling collection of money including deposits, add on charges and refunds.
- Ensuring smooth check-ins, check-outs and pleasant stays.
- Providing 24/7 hour availability for emergencies and problems.
- Cleaning and restocking your home between each visit.
- Making minor repairs and overseeing maintenance.
- Requesting feedback and replying to guest reviews.
Arizona Vacation Home Rentals specializes in vacation rental start-up projects, marketing and owner/guest liaison services for vacation rental properties in the greater Phoenix and Payson areas. We have more than 25 years of experience marketing all levels of vacation rental properties. We have helped over 200 owners transform their home into a vacation rental.
If you have questions or would like to discuss converting a home or purchasing a vacation rental property please contact us.
