Owning a Bixby vacation home can be a marvelous idea. You can have your own vacation house, and you can also use it as a rental property throughout the year to help with expenses. And yet, anyone who has ever owned and rented out a vacation home will tell you that things won’t always go according to plan. Owning vacation rentals will always have pros and cons. Prior to committing to vacation rental ownership, you should conduct all the pertinent research.
Pro: Extra Income & Tax Breaks
A big benefit of owning a vacation rental is the extra income you can earn from renting it out. Depending on whether you choose to rent it out short-term (days or weeks at a time) or long-term (several months at a time), you can set it up in a way that the property can pay for itself.
Con: Another Mortgage Payment & Expenses
Of course, buying a vacation rental comes with a mortgage payment, insurance, property taxes, utilities, and other expenses. All of these are essential details to take into account when planning a vacation rental ownership. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.
Pro: It’s Yours to Use
Being an owner of a vacation home means you get to do whatever you want with it. This is a good idea if you frequently visit the same location without wanting to stay at a hotel. You can also use the property for business or personal events, meaning you won’t have to pay to rent event space elsewhere.
Con: Marketing and Screening Tenants
You will have to market your vacation home to potential tenants if you don’t intend to use it most of the time. Marketing can be a time-consuming task, as is screening potential tenants. It becomes a daunting task, especially when you intend to rent it out for days or weeks at a time. When you have swift and frequent turnovers, you will have difficulty finding numerous tenants to rent year-round.
Pro: Building Your Retirement Fund
Rental real estate is a wonderful way to see growth for your retirement fund. Rental property owners often include their rental income or property sale into their retirement plans. Real estate isn’t like the volatile stock market or savings account that offers little interest — it gives you safety and growth, unlike other investment modes.
Con: Property Management Takes Time
If you want to taste the reward of owning a vacation rental, you will have to plow through years of property management. It’s more of a challenge when you have to keep your property clean and maintained by yourself, or if your vacation rental is not close to your primary residence. Unlike long-term residential rentals, vacation rentals involve preparations that come with each new tenant — something known by most vacation rental owners!
Owning a vacation home and renting it out can be a great investment in and of itself. To make the most of your investment, consider hiring a good property management company! Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Tulsa has a top-notch team of Bixby property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 918-532-7020 today!
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