How to Buy and Rent a Vacation Home

Jun/14/2010 05:39 PM Filed in: CommunityResource Guide
Vacation Home
How to Buy and Rent a Vacation Home

In keeping with our summer vacation theme, buying a vacation home for rental and personal use can offer a number of advantages, but is it right for you? Learn what you should consider before purchasing, the tax implications of owning a vacation rental home and how to rent it to offset expenses.

With interest rates still historically low, you may be tempted to purchase a second home to use as a vacation rental home (and for your own personal use as well). There is a market for renting out your vacation home, especially as travelers look for more affordable options closer to home.

Is owning a vacation rental home right for you?
Before purchasing a vacation property, it’s important to research any local laws or property restrictions that could affect your ability to rent your home. In addition, you need to take into consideration the location of your vacation rental home. Is it near a popular tourist attraction or destination, such as a beach? This will affect that marketability of your vacation home. You also need to be sure you are willing and able to:
  • Do the necessary research to estimate how many weeks your vacation property will likely be rented, your monthly costs and your income potential.
  • Give up the use of your vacation home during the peak season, when demand for your residence is the greatest.
  • Put in the necessary work to advertise, screen tenants, and hire cleaning and maintenance crews.
  • Maintain your second mortgage if times get tough in either the real estate or vacation markets.

Read More and Learn: How to Buy and Rent a Vacation Home

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