There are plenty of ways you can get involved in real estate investing, but none may be more interesting and potentially profitable than vacation rentals. If you’ve stayed at a rental home before, you probably know these two things tend to stay true about these kinds of properties: they’re always in high demand, and you can charge premium prices.
We wanted to dig into the nitty-gritty of vacation home rentals, so we called up Winston Deloney. This expert real estate investor has a diverse portfolio and is knowledgable in everything from rental units to fix and flips. We caught up with Deloney, so he could have five reason why all real estate investors should consider vacation rentals.
You can make some really solid income
If you own a vacation rental in a highly sought-after area, you can experience some pretty profits. And this doesn’t mean you have to have a rental on a tropical island (although that’s always nice).
Cities which experience a lot of tourism can also be excellent locations for your vacation rental. If you’re in a great area, and the property is a hit, you can enjoy basically passive income for years on end.
You can charge premium prices
When it comes to vacations, people are willing to pay up. This is opposed to just owning rental units, for example, when people tend to want to save more money regularly, since rent will be a monthly expense.
When people are on a vacation, they’re already treating themselves, and typically will be willing to put their money down to enjoy a wonderful break.
Many expenses become tax deductible
If you own rental real estate, you should be aware of your federal tax responsibilities. This changes from state to state, but typically speaking, if your property is rented out for just a few weeks of the year, you can write off many expenses for taxes.
These expenses can include maintenance of the property, as well as supplies like toilet paper, insurance costs, and even property management fees.
You’ll have a place to escape to
According to Deloney, one of the best parts about owning a vacation rental is that you have a built-in vacation spot. This will save you costs on your own vacations and can greatly add to your quality of life. You’ll have a place to retreat to, whenever your heart desires.
There are plenty of tools to help you market your property
Ahhh…the digital age. According to Deloney, a great perk about owning a rental property now is that there are plenty of tools at your disposal to help you market your property. You can choose the market your vacation rental all on your own, or you can list your properties on as many different platforms as you’d like, to make sure it gets maximum visibility.
Either way, there are tons of digital marketing tools, social media platforms, and vacation rental platforms to help your property get rented time and time again.
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