You can hear about vacation rentals based on reputation or word of mouth. There are a number of different vacation spots that come to mind across the country based solely on stories you’ve heard from others about these dreamy destinations. Take for example, the Outer Banks in North Carolina, Myrtle Beach in South Carolina and Lake Tahoe in California, these are all destinations you’ve probably heard about. Even though you may have never been there, it is easy to get lost in the thought of owning a vacation rental in one of those areas and reaping the benefits.
Past experience is also another driving factor when investors are trying to determine where to invest for a vacation rental. Growing up I went on many vacations to Cape Cod, the classic trips are etched in my memory and it is easy to remember and understand why Cape Cod always has families coming back every year to experience something new the area has to offer. The perk of family-friendly fun means bigger properties and higher rents as well so as an investor, areas like these are important to consider.
The last model of picking out an area for a vacation rental is real time research. This is clearly the most expensive route, but you can’t replace taking in the atmosphere you are about to invest a significant amount of money into. Spending time in areas such as these can be a big help in determining where you decide to invest in a vacation rental investment property.
One crucial factor when deciding on a vacation rental investment is that some lenders in the industry will not allow the investor to spend a day in the property. These properties are designated as non-owner occupied. The important question still remains when trying to decide on a vacation rental, “Would I vacation here?” or “Is this someplace a family can create memories and want to come back to?” are two burning questions that every investor needs to have answered before they take on a property.
Once a location rises to the top choice for an investor other work must come into play. Researching the market for homes in the area is a clear first step. What should you expect to pay for a property in the area? What can you charge for rent? What amenities are here to attract couples or families? Are a lot of areas public or private? Pet friendly? These questions can be a part of a checklist for an investor as they zero in on the perfect home. Other top selling points include local amenities, quality restaurants, and a variety of fun activities that can keep your renters entertained throughout their stay. Combining the personal feel of an area that you as an investor would like to stay in coupled with the fact that the area itself is booming and full of opportunities to keep renters happy is a sure-fire way to guarantee you made the right choice to invest.