A vacation home can be a great source of income for your family as well as a wonderful retreat. Still, if you are planning to purchase a vacation home to use as a family getaway and as a rental property, there are several things that you should consider. Here are a few of them:
There will be upkeep.
If you live in a city several states away from your vacation home, it will be necessary to arrange for someone else to maintain the property. Before and after each rental, the home needs to be cleaned and inspected. In addition, general upkeep of the property will be necessary, such as periodic painting, fixing plumbing issues and carpet cleaning. The yard of the property will also need to be regularly mowed and treated.
Some vacation homes will require more of certain types of upkeep than others. For instance, your beach home will likely need to be painted more often due to the paint's exposure to the salty air.
Many of these tasks can be overseen by a property manager. These managerial and maintenance costs should be considered as a part of the investment expenses.
The property may not always be occupied.
Depending on the location of your rental property, there are greater demands during certain seasons. For instance, if your vacation home is on a beach, you are likely to have more renters during the spring and summer months. Likewise, people may gravitate to a mountain retreat during snowy seasons.
When considering the amount of income that can be received through your rental property, it may be best to plan for a couple of weeks without rental income. In addition, adjustments will need to be made to the rental fees based on seasonal demand. At times when the unit is in highest demand, you may be able to increase your rent. The lowest rental fees should be associated with the off-season of the vacation home.
Expect greater upfront costs.
If you already have a primary residence, it is likely that the bank will expect a larger down payment for a rental home. Thus, before planning to purchase the home, it is wise to check the bank's requirements beforehand and save up enough money to cover that percentage of the home's purchase price.
If you would like to purchase a vacation home, consult a Realtor in your area. He or she will be able to help you find a home in your budget that can serve as a great investment property as well as meet the relaxation needs of your family. You can also visit sites like http://www.casperrealestate247.com for other information.