How to Successfully Invest in Short Term Rentals

Dated: November 13 2021

Views: 157

Curious about Short Term Rentals? 


Buying a short term rental, also known as vacation property, could be your next successful investment. Want a lifetime of vacations that pays for itself? We'll show you exactly how to get it.

Your Vacation Home Can Pay For Itself. Here's How.

 

1. Do your research.

2. Pick the right type of property. 
3. 
Make improvements in the off season.

4. Use a professional property manager.

Research the Market

To determine how much rental income you can expect, you'll want to look at comparable properties, occupancy, nightly rates in each season, and costs. Want some help? We offer free comprehensive market analysis on any property you're interested in. To give you a general idea, here are yearly income estimates for two common types of vacation rentals.

House | 3 Bedroom 2 Bath | Sleeps 10

A home like this can make up to $45,000 per year, with beachfront making up to $80,000 per year.

Condo | 2 Bedroom 2 Bath | Sleeps 8

A condo like this can make up to $20,000 per year, with beachfront making up to $35,000 per year. 

Picking The Right Property

Always choose a vacation home that you'll love coming back to.

 

First, weigh the pros and cons of getting a house vs. a condo. The primary benefits of a house is greater space and privacy, but you'll miss out on the amenities (resort style pools, landscaping, fitness centers, etc.) that come with a condo. Other factors to consider are the HOA fees and what they cover, and of course maintenance costs.

Take Advantage Of The Off Season

Wintertime is the best time to buy a vacation rental because you have a large window to make improvements that increase the value of your property. Renovations, preventative maintenance, and fresh furniture and decor allow you to boost your nightly rates and bring in more income.

Partner With a Local Property Manager

 

Turning a vacation home into a money-making rental has many moving parts, from the photography and marketing, listing on booking sites, customer service and communications, handling emergencies, managing housekeeping, maintenance, and repairs. It requires time, effort, and proximity to the property.

 

You could take all this work upon yourself, or you can hire experts to do it, while you take it easy and collect a big check every month. 

 

Our sister company, Connect Coastal Vacation Rentals, provides exceptional, full-service property management to give owners peace of mind and give guests a high quality rental experience. To learn about our all-inclusive property management services, give us a call at 409-632-7758 or click here.

 

Blog author image

Connect Coastal Vacation Rentals and Sales

Connect Coastal Vacation Rentals & Sales is a real estate and property management company locally-owned and operated in beautiful Galveston, Texas. Our office sits right at the heart of the Island: di....

Latest Blog Posts

How To Increase Your Rental Income in 2022

How to Increase Your Rental Income This Year1. Take Better Photos The photos of your property are the MOST important part of your listing. Potential guests will look at many different

Read More

New Development near Magnolia & Todd Mission - An example of opportunity

The growth continues.  This is a new article outlining broadly a new development in the far Northwest of the Houston marketplace. The developments continue toward college Station, closing

Read More

Trends in Real Estate - The seasonality of Houston Single Family Home Transactions - Nov2021

The seasonality of single family home transactions is visible when you look at the data.  I find it easier to produce a picture of that data.Generally, every year follows the same pattern.;

Read More

TIPS TO LIGHT YOUR HOME

Lighting is such a crucial aspect of your home and can affect the ambiance, energy, and vibe in each room. However, sifting through the various styles, bulbs, and placement options can feel

Read More