As a vacation rental investor, finding the right investment property can be challenging. To make the process smoother and more successful, follow these recommended steps:
1. Know Your Market:
Not all markets are ideal for vacation rentals. Work with local experts and platforms like Airdna to determine markets with strong demand for short-term rentals. Consider the popularity of the destination, rental demand throughout the year, nearby tourist attractions, and the availability of shopping, dining, and entertainment options. If you have a personal travel destination in mind, consider investing in real estate there for peace of mind. Florida is the top-performing state for vacation rentals.
2. Connect with Local Pros:
Once you've selected a market, reach out to local vacation rental property management companies and real estate companies specializing in short-term rental sales. These experts can provide valuable resources and guidance to make informed decisions. A good management company is crucial to the success of your investment, as a vacation rental owner's operations and reviews will impact their rental business. If you're interested in the Southeast Florida market, feel free to reach out to us.
3. Start Your Search:
When searching for a vacation rental investment, consider the property's location, size (bedrooms and bathrooms), and features and condition. The property's location should have high travel demand and desirable local markets. The size of the property affects the number of guests it can accommodate. A home with 3+ bedrooms is ideal for high earnings. The condition, features, and style of the property are essential to attracting guests. Ask yourself if you would pay to stay there with friends and family. If not, don't buy it.
4. Analyze the Numbers:
Before making a final decision, review the financials with the help of local experts. They should provide revenue projections, comps, key data points, and other relevant financial details. Consider debt service, operation cost, expenses, taxes, and renovation costs.
By following these steps, you'll be well on your way to finding a successful vacation rental investment that meets your needs and expectations. Connect with us today to learn more about vacation rental opportunities.