Are you looking for a property to buy as both a vacation home and short-term rental income? It's a great way to have a second home that pretty much pays for itself and set up a secure source of passive income for years to come. But, you'll need to choose the right piece of real estate in order to make it work best. Here are 3 things to look for in your new vacation property.
Location. The home's location is one of the few things that you can't really change, so make sure you choose a good one. Vacation renters want some level of convenience, so you may want to find a property that's close enough to walk to major attractions like the beach, a hiking trail, downtown, or local restaurants. For the best rental income, be sure you have a house with an attractive view in the main lounging areas of the home. If you want to appeal to older vacationers, be sure your home is easily accessible -- meaning a flat entrance, bedrooms on the first floor, and an open floor plan.
Ability to Divide. Simple math says that two homes being rented will earn you more money than one home rented out. You can also continue earning money on one unit while using another as your own vacation spot. To achieve this, look for a vacation home for sale that could be easily divided into two functioning units -- complete with a small kitchen, an exterior entrance, and its own bathroom. Be sure to research zoning and permit allowances with the local city planning department before committing to a home, though, to ensure that you're able to complete this modification legally.
Amenities. Aside from the location, one of the biggest deciding factors for many vacationers looking at property choices is the addition of amenities they can get. A home with a hot tub, for example, can fetch a much bigger price and be rented more steadily than a home without one. Instead of worrying about amenities that already exist on the property, look for a vacation home that has the ability to be altered to add such things as a spa, pool, second bathroom, covered deck, or patio. And be sure you leave room in your purchasing budget to make those additions. If you're looking at condos instead of single-family homes, research the extras offer by the complex and how easily available they would be to your guests.
By paying attention to these potential money-making options when real estate shopping, you can find a second home that will be perfect for your family and for many other vacationers for years to come.