How to earn by investing in Utah vacation rentals?
Let’s start this blog with an example of the world’s largest vacation rental business: Airbnb, one of the fastest-growing industries in the US. You have been recently making money and would have definitely be tempted to multiply it by investing it in high-return investment options, such as real estate.
Real estate, however, is a broad field, consisting of residential apartments to warehouses. Out of the tons of property options to invest in, one lucrative pick can be vacation rentals near me. Here is a quick guide to how to earn money quickly and consistently by investing in Utah vacation rentals.
Do in-depth research
If you are a beginner to real estate investing, you should dedicate an ample amount of time to research. It is essential to be acquainted with the ins and outs of how it is to put your money in a vacation rental property. Luckily, the internet is your go-to place for any information you need.
Another fact to be mindful of is that vacation homes are short-term rentals as opposed to residential and commercial properties that people rent for years. So, even if you have experience investing in long-term rentals, understand that vacation home rentals near me are a different game, and you are targeting an entirely different tenant group.
Purchase the right property
There are several factors you need to consider before buying a rental property, primary ones of them being location and property type. Let’s discuss these factors in brief.
Location, by far, plays the most crucial role in determining the success of your rental property. The golden rule is to pick a city with high tourism rates. But be sure not to invest in vacation house rentals near me on the outskirts; make sure it is located near popular attractions, such as beaches, ski slopes, theme parks, etc.
Vacation rental homes are divided into two categories: single-family or multi-family. Evidently, the more rental units your property has, the more guests you can host; thus, you can make more money. But if you want to target rich families, you can consider single-family villas as well.
Try picking a location that has tourists throughout the year. Seasonal locations will be full for a few months but might experience zero occupancy for the rest of the year. Therefore, invest in a property at a location that is desirable year-round.
If you are contemplating to list your property on Airbnb or any other listing site, stay updated with the latest regulations and policies for short-term rentals. The last thing you want is to get stuck with legal troubles, which can be detrimental to your investment.
Update and decorate your vacation home
Once you have purchased your dream vacation home, it’s time to make it guest-ready. Buying a property and leaving it as it is won’t be enough. It needs to be up to date and catchy to attract visitors. Here is a quick go-through on what you should be doing to make your vacation rental property ready for hosting guests.
Decoration and furnishing
People love things that look beautiful, well-maintained, attractive, and comfortable. Make sure to invest in some renowned interior designers to ensure your home looks perfect.
No guest will appreciate living in a ‘multi-150 sq. Km. Room’ Utah vacation rentals with no basic facilities. Although these offerings can vary, there are certain amenities without which guests cannot live. These include:
- Hot tub, especially if your property is in a colder place
- A home that welcomes pets
- A fast and secure Wi-Fi connection
- TV and other entertainment options
Determine your rental rates
Once you have prepared your second home to act as a money-making machine for you, it is time to determine your rental rates. The rule of thumb is to go with the industry standard; see what similar properties are charging and set your prices accordingly. Charging too low can raise credibility issues; whereas, charging too much can repel potential guests. Make sure you hang in the middle.
Be open to reselling
Renting is one way to make money from real estate but not the only one. After five or seven years of renting out your property, you can consider reselling it at a higher price. Vacation properties get natural appreciation, and if you maintain them well and update them regularly, you can earn resale profits up to 25-30 percent. Thus, keep looking for selling opportunities, and if you find a good offer, don’t be afraid to sell it.
Here was a quick guide to earning money from investing in vacation rental properties. For a beginner real estate investor, vacation homes are the best options because they generate income on auto-pilot mode. All you need to do is list it with a popular vacation booking site and start inviting guests. Be mindful of paying attention to management, amenities, and repairs to ensure your property stays up to date.
Vacation Home Rentals