Renting Out Your Vacation Home
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Posted On :
Jan-13-2011
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Article Word Count :
530
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The article explains the advantages and disadvantages of renting out a vacation home, along with a few useful advice and information.
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During a budget crisis, extras are shaved off from the budget of the family and if you are in a situation in which you are losing money from your vacation home, now it would be a good time to put it to work. We all know that from time to time, especially during vacations, we start looking to rent a property somewhere to ease off the stress. As a consequence, this is a great profitable opportunity for those of us lucky enough to own such a vacation home.
For those of you that are too busy to spend some time at your second property but you do not want to sell, it would be a great idea to rent it. If you convert it into a vacation rental, the house could in fact very well pay for itself with little to no offer from its owner. Of course, if the market exists, the owner of such a property has the possibility to consider a longer term lease, but considering it a vacation rental can provide some solid advantages.
Speaking of, here are the most important pros of a vacation rental:
1. First of all, the rent potential is huge. For example, although the going rate might stand at $1,000 per month, the potential nightly rate could be $150. If the property is rented for 10 days, the rent income would come to $1,500;
2. Second of all, the home will still be available for its owner when the property is not rented;
3. In most cases, the renter is a different “type” of renter in comparison to a longer term renter;
4. If the owner of the vacation home decides to sell, he doesn’t have to wait for the lease contract to end.
On the other side, there are of course a couple of disadvantages of a vacation rental, here they are:
1. Clean up is necessary after each and every quest;
2. The property will be exposed to a significant number of strangers;
3. The more rental arrangements, the more work imposed.
In the following we will offer you a “to-do” list if you made up your mind and decided to rent the property:
a) Get address liabilities and proper insurance;
b) Get rid of all your personal belongings and remove any valuable items;
c) Figure out the rental rates of the competitors as well as the deposit requirements;
d) Do some advertising to a wide audience;
e) Get someone to manage the vacation home (cleanup, keys);
f) Think about the payment method;
g) Create all the necessary paperwork like documents, instructions on using the vacation home, rental agreement, guest requirements and rules;
h) Figure out what decor might be added in order to increase the rental interest and what sort of supplies you will provide to the guests (linens, kitchen utensils, paper goods);
i) Make your own recordkeeping system.
Renting out a vacation home is a big decision that will affect not only you, but the entire family. It is a great way to turn a financial leak into a money making asset, but there are some risks involved so be very careful.
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Article Source :
http://www.articleseen.com/Article_Renting Out Your Vacation Home_48432.aspx
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Author Resource :
Obtain affordable and high quality Cape Coral rental houses by viewing our info shared at www.cape-coral-vacation-homes.com .
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Keywords :
Cape Coral vacation homes, Cape Coral vacation rentals, Cape Coral vacation home rentals, Cape Cora rental houses,
Category :
Finance
:
Real Estate
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