With the vacation rental industry capping the market of $36.6 billion in 2018, it comes as no surprise that Utah’s best vacation rentals are one of the most lucrative options to invest in. From earning consistent side-income to owning a second home, there are several benefits of investing in a vacation rental. Let’s dive into some of the irresistible advantages of getting your feet wet in the vacation accommodation market.
It offers a combination of both worlds
When it comes to traditional real estate properties, such as residential apartments, you do not have the flexibility to occupy and rent out your second home at quick intervals. The best vacation rentals are for short-term rentals, and if you feel like spending some time in your second home, you can stop the bookings a few days prior to your visit and spend as much time as you want to spend in your vacation property.
Once done, you can reopen the bookings to continue your rental earnings. To enjoy this benefit, make sure you purchase a property at a location you like to visit. Although the destination needs to be popular, it is crucial to pick a place you prefer traveling to ensure you get to enjoy your resort vacation properties st George as well.
You can earn quick, short-term profits
If you are looking for an investment that helps you make quick profits, vacation rentals are your go-to solution. Vacation rental properties in a year-round tourist destination are always in demand and can be much more lucrative than long-term, traditional rentals. Such homes go out for high rental amounts, which will not only cover your general expenses and upkeep costs, such as property taxes and insurance, but will generate significant profits as well.
Several factors play a role in determining the potential profits you can generate, including
- Quality of interiors
- Property type
However, there are a few drawbacks that you need to acknowledge. These include:
- Vacation homes have high expenses and operational costs
- The tourism at any location can be affected by various factors, such as weather patterns, currency fluctuations, and country, state, or city tensions.
Nevertheless, the upsurge in the popularity of people sharing the best vacation homes does not seem to slow down anytime soon. Moreover, with more and more people showing interest in traveling, investing in a vacation rental property is undoubtedly a golden pick.
It also offers long-term gains
You can consistently benefit from the rental income you receive. But, your vacation property can offer long-term benefits as well. When purchasing a vacation home, you are making a real estate investment, and if the real estate trends continue, your property will gain natural appreciation, thereby increasing its resale value.
In addition, when you invest in or upgrade your property, you further increase its value. If you treat your vacation property as your second home and make continuous improvements and additions, you invest in the future of your property.
Home upgrades lead to greater rental revenues as well and that too from day one. Moreover, you do not have any long-term tenancy agreements in which you can raise rents only up to 2-3% every year. You have full authority over the prices you want to charge, so you can increase the rates as soon as you make an upgrade or improvement in your property.
You can outsource management as well
Resort vacation rentals require more attention and supervision than traditional properties, but you don’t need to be on-premises all the time. There are many companies that offer support and management services, which give you flexibility regarding how much you want to get involved in the management process.
So, you are not obliged to carry all the responsibilities of managing your property. You can hire rental management companies that will take care of the basic operations and will contact you whenever you’re involved. Moreover, they also enable you to pick the tasks you want to take in your hands and the ones you want to outsource.
It is essential to keep in mind that owning and managing a vacation rental home consists of various small components that cannot be looked over. Thus, it is essential to acknowledge all kinds of tasks needed to run a rental property successfully. Here is a quick look into some of the major tasks associated with a vacation home.
- Marketing of the property
- Nightly pricing
- Liaising with the guests
Wrapping it up
There are a plethora of benefits associated with vacation rental investment. You can enjoy both long-term and short-term gains, along with the luxury to spend as much time as you want in your second home. However, keep in mind that there are a few minor but crucial challenges to managing a vacation property as well. Thus, be sure to learn the ins and outs of investing in a vacation rental before making a move.Categories: Vacation Home Rentals