You've balked at renting it out when you aren't using it.
That's because you are afraid of tenants crashing your pad, your fear
running a business alone, you don't look forward to the upkeep and a host of
other "running your own business" myths are preventing you from earning the
return you wanted when first purchased your second home.
You think the only way to own a second home is to, well, to foot the
bill.
Not.
With property values as low as they've been in a decade, there's no time
like the present to turn your second home into a vacation rental
and let your investment really pay off.
A growing number of travelers are looking for bargains in the form
of home-away-from-home accommodations.
"Conversion (vacation rental lookers becoming vacation rental bookers)
improved by 16 percent over December 2009 and 31 percent over November 2010.
This trend indicates that consumers are shifting from shopping to buying,"
said Steve Reich, Senior Vice President of Sales at
LeisureLink, which tracks queries for vacation rentals, timeshare
resorts and boutique hotels from online travel agencies, including
Travelocity, Orbitz and Expedia, global distribution systems (GDSs) and
LeisureLink's own ABetterStay.com.
"The combination of increased conversion and demand will result in
revenue growth and guest acquisition opportunities. Regional changes have
been particularly striking. Conversion in the Rockies ski regions is up, and
we saw a dramatic improvement in conversion in the Gulf Coast region with an increase of
22 percent over the prior year," he added.
He also said, "Given the current trends and historical seasonal patterns,
we forecast that early 2011 will see strong growth."
It's not the market. Myths are keeping you from turning your fears into
cash on the barrel.
"If you've avoided this option in the past, know that renting your
vacation home has never been easier or more convenient than it is now," says
Christine Karpinski, director of the Owner Community for
HomeAway.com, the nation's largest vacation rental portal of some 500,000 privately
owned listings for travelers and property owners alike.
Karpinski, also author of "How to Rent Vacation Properties by Owner: The
Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your
Vacation Rental Investment" (Kinney Pollack Press, $26.00), says here's the
real scoop on the myths that could be holding you back.
• Renters will rock-and-roll your property. Tenants rarely trash
properties. Instead they understand they are in a private home and typically
treat it as such, with respect. You get to choose who stays in your
property. Take the proper precautions when accepting renters, including
requiring a security deposit.
• You are on your own. You can use a host of online
listing sites to market your property and if you live nearby you can clean
it after each guest, but you also have the option to hire housekeeping help,
on-site maintenance workers and a property manager. HomeAway.com and other
rental portals typically offer a host of information to help you care for
your property.
• It is too difficult and costly to market your property. To the
contrary, most people who sign on with a reputable online listing site find
that guests come to them. HomeAway.com offers listings for between $169 and
$550 a year. Other sites can be even cheaper. Also, give your guests a great
experience and word of mouth advertising is free.
• Property upkeep will be a nightmare. Property owners fear they
will be frequently alerted in the middle of the night by a renter who is
locked out or because a toilet or sink is clogged. Simply put a good plan in
place and hire recommended maintenance and housekeeping people in the city
or town where your property is located.
• It will be too time consuming. The bulk of your time is
spent up-front, setting up your rent-by-owner business. And, yes, there is
banking and bookkeeping time. Beyond that, your work usually consists of a
phone call or two and a couple of e-mails per guest to make sure everyone
has the information they need.
• You'll never get to enjoy your vacation home yourself. There is no
requirement on how frequently you have to make your property available. Rent
it out during peak season and enjoy it yourself during off-season. Or
reserve a few weeks out of the year for your own use and rent it out the
rest of the time.
