Vacation Rentals - Part I - Look Before You Leap!

Imagine taking that trip to Maui every yearrequired to make unplanned trips to deal with
without having to pay for an expensive condolandlord/tenant issues.
rental. Maybe even set aside a few extra weeksAffordability: You have that nest egg set aside
for an extended holiday and have someone elsethat will take care of the deposit, but what about
pay the rent. Purchasing a vacation rental maythose off-seasons where the property may not
give you this option, or the ability to travelbe rented. Like any home, you will experience
whenever you choose using the income from theemergency repairs or unexpected expenditures.
rentals to subsidize or pay off your mortgage.Ensure that you can afford this piece of property;
Not to mention, that you are diversifying yourafter all, you want to be able to sleep at night.
investment portfolio by adding a new piece of realDue diligence: Make certain you are working with a
estate.reputable realtor who can guide you through the
Sounds great, doesn't it? In reality, this is a bigvarious laws in the area you are investing in, but
step; make certain you know all the facts beforeyou should also have some prior knowledge.
signing on the dotted line.Especially for "across the border" purchases,
Don't let emotions get in the way: Purchasing aresearch the area so that you understand the
vacation property is often an emotional buy.implications of this acquisition, including the
You're having a great time on holidays, a millionimmigration policies regarding the length of time
miles from reality, and suddenly this attractiveyou are allowed to visit and how often.
deal is put in front of you and it seems like aTalking to other renters can provide invaluable,
great idea. Most times, it is, but sometimes people"don't let this happen to you" information, as well
will get home, look at each other and say, "Whatas tips on property management companies,
did we do?"cleaning help and anything associated with your
Commitment: Understand that this isn't someplacerental. Before purchasing, I went through some of
you can visit and then forget about for anotherthe online vacation rental sites, such as
year. A vacation property is an active businessa1vacations.com, and searched for other rentals in
that will require your loving care to flourish; andthe same location. I noted the owner's email or
whether you decide to employ a propertyphone numbers and contacted them. They were
management company or choose to self-manage,extremely helpful and quite happy to share their
a certain amount of commitment and attention isstories.
essential.So you've done your research and you're certain
Locations: If this is a property that you intend tothis is something you really want. Congratulations -
use, make certain the location is someplace youenjoy your new property! For the next steps,
want to return to, year after year. Also, if it's aread on to Part II - The Highs & Lows of
plane trip away, realize also, that you may beSelf-Management.