The vacation rental industry predicted gains of $36.6 billion in 2018. Sustained by a strong US travel market, money generated from the private accommodations market skyrocketed 11 percent in 2016, twice that of the total US travel industry.
If you’re considering investing in a vacation rental, here are four irresistible reasons to get in on the private accommodation market now.
1. The Best of Both Worlds
Long-term rentals represent long-term leases and commitments. As a traditional landlord, you don’t have the option of occupying your second home at various points throughout the year.
When you go the short-term vacation rental route you get to enjoy your vacation home, while also benefiting from the rental yields during the rest of the time. This gives you the best of both worlds! You can visit the property during various periods of the year, either by blocking the calendar in advance or even by making a last minute trip if the calendar is free.
For many vacation rental owners, their vacation property is where some of their best and most lasting memories with friends and family are made. Being able to truly enjoy an income-generating asset is an incredible benefit that up until recently wasn’t very common. With the drastic growth of the home-sharing and travel industry, it is now something that many owners are turning a great profit from.
2. Short-Term Profits
If you’re looking for a good investment and additional source of income, a vacation rental may be your solution. In-demand vacation rentals can be much more lucrative than owning a long-term rental. The income from your vacation home can not only cover the costs of general expenses and upkeep such as insurance, property taxes, mortgage, and repairs, but the right vacation rentals can easily generate quite substantial profits on top.
The location, quality of interiors, and available amenities all play a role in determining the potential rental income. There are a lot of different factors to consider when finding the best investment. We are always happy to provide a revenue analysis for any vacation rental property in Whistler or refer you to a local realtor if you are interested in exploring investment opportunities in Whistler!
On the flip-side, it’s also important to acknowledge that vacation rentals generally have higher expenses and operating costs. Additionally, the state of the vacation and tourist economy can be affected by certain uncontrollable factors like currency fluctuations and weather patterns. Nonetheless, with the surge in popularity of home-sharing that has no signs of slowing down in the foreseeable future, combined with the fact that more and more people are happy to spend money on experiences and travel, investing in a vacation rental seems better than ever!
3. Long-Term Gains
While benefiting from rental income represents a short-term goal, a vacation property can also come with long-term advantages. Your vacation home represents a real estate investment that if long-term real estate equity trends continue as they have historically, will likely appreciate in the long-term as well.
What’s more, every time you upgrade or invest in your property, you stand to increase its value. When you treat a vacation property like a long-term investment and improve it accordingly, you’re investing in your properties future. Moreover, home upgrades in many instances lead to being able to attain greater rental revenues from day-one. There are much fewer restrictions on vacation rentals. With the average stay being between 3-7 nights, you do not have long-term tenancy agreements that are binding and difficult to get out of if you desire to. You have complete flexibility over tenants and pricing. Many long-term rentals which often have a 2-3% limit (like in Vancouver) on how much you can raise rents. This way you can benefit right away with your next booking from improvements made within the home and benefit from long-term equity gain if property prices continue to rise.
4. Take On as Much or as Little as You’d Like
While it’s true that vacation properties come with more day-to-day work than other real estate holdings, there are various companies who offer a wide range of management and support services. These services allow you the flexibility to be involved in the management process, however much as you want or and your schedule permits.
You don’t have to carry all of the responsibilities associated with the property; you can hire a fill service vacation rental management service or find other companies who will assist you with whatever you need help with, while leaving anything that you may find enjoyable in your hands.
It is important to acknowledge that there are many little components to running a successful vacation rental, so make sure nothing gets over-looked or forgotten. Here are some of the big ticket items that need to be looked after:
- Home marketing
- Nightly pricing
- Liaising with guests
- And more
Vacation Rental Investment
When it comes to vacation rental investment, there are a variety of benefits that it’s hard to narrow them down for one blog post. These main four components are some of the best reasons for purchasing/owning a vacation rental property.
Renting your vacation home means an investment in your future for the reasons listed above and so many more. Not sure where to start? We’re here to help, so contact us today to learn more about how we can help!