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The Best Advice for Turning a Luxury Home Into a Profitable Vacation Rental
Vacation rentals are a powerful trend, and luxury homes are becoming a hot commodity in that market. In fact, Forbes notes it’s the hottest trend in the hospitality industry, as vacationers seek out posher accommodations than in prior years. If you’re thinking of investing in a luxury home vacation rental, here’s how to ensure yours is a profitable venture.
How will you handle management?
Among the challenges of owning a vacation rental is keeping up with the physical property. There are maintenance, repairs, and landscaping to consider on top of administering to the needs of your guests. Before you get too far in the process of deciding on the location, remember that someone will need to be close enough to tend the daily necessities.
Unless you’re nearby, have ample free time, and are quite handy, the Mortgage Reports notes you’ll likely be happiest hiring a property manager to take on the responsibilities. In addition to overseeing upkeep and making guests happy, a well-chosen agency offers features such as tending to bookings and cleanings, communicating with you effectively when the property is rented and 24/7 support. It’s your best opportunity to enjoy passive income from your vacation rental, rather than taking on a whole new vocation.
Choose an enchanting location
By now, you’ve heard the expression, “Location, location, location,” applied to real estate purchases in a variety of situations. It refers to the influence of location on a property’s current and future value, and it couldn’t be truer than when selecting a property for a vacation rental. When it comes to enticing travelers, the more relaxing and fun-filled a location is, the more guests you can expect.
When searching for prospective homes, HGTV notes that it can pay off to visit properties in person, as luxury homes are notorious for not being photogenic. In order to protect an owner’s privacy, listings are often private. With that in mind, a real estate agent will be an invaluable resource. Some experts suggest interviewing prospective agents before committing to one. Search for someone with a solid background, familiarity with the area, and experience with finding top-notch vacation rentals.
Feeling out prospects
Beyond selecting a great general area and an interesting, beautiful, and luxurious home, remember that guests might also be interested in other specifics relating to a property. Is it challenging to reach? Are there area attractions guests would enjoy? Is it close to universities, arenas, or other facilities that host events? Since vacation rentals are short-term, guests sometimes visit for ulterior motives. They might be choosing your property because it’s a welcome respite from the “real” reason they are coming to the area. Consider every angle when making choices, and remember that a professional agent can provide insights you might not otherwise consider.
Upgrades that matter
Purchasing a terrific property is a great start on making a worthwhile investment. Oftentimes, renovations can make the difference in drawing guests, and at the same time, properly-selected changes will attract buyers should you elect to sell at a later date. If you’re purchasing a luxury home and considering ideas to make it more eye-catching, think in terms of upgrades like retractable glass walls, vaulted ceilings, and smart home technology. Smart home technology offers particular advantages to the homeowner since certain devices will alert you, your property manager, and/or emergency services if something should go awry. Another upgrade you can make is adding a new flat-screen TV to your home, along with a wireless home theater system. With this system, you can avoid dealing with wiring, and your guests can enjoy superior audio with surround-sound speakers.
A well-chosen luxury home can make an outstanding vacation rental. Do your research and enlist the help of appropriate professionals. With proper planning, a vacation rental could be a tremendously profitable venture.