We talk to a lot of different landlords and property owners and one thing they always want to know is whether it’s best to do a vacation rental or a long term rental. Today we’re going over what we discuss with those property owners when they’re trying to decide.
One thing you need to know is that having a vacation rental is a lot more work. That’s because the renters you get are people who are on vacation and they will treat the home like a hotel room. You will need to check them in and out.
There’s also some extra wear and tear on the property when you’re using it as a vacation rental. There are more people coming and going and when a new guest checks in, that guest is going to expect everything to be perfect. You’ll have to make sure it looks good.
Your vacation rental will come with more bookkeeping than a long term rental. You need to pay a sales and hotel tax every month, and there are specific forms that you need to file with the state. That can be a hassle.
You will need to buy furniture and decorate the property. We see a lot of the houses in the Southeast Cape and the Southwest Cape that rent for around $5,000 or $6,000 per month. People who pay that much for a vacation rental are going to expect to see high end furniture and appliances. They will want a nice patio and lots of amenities.
Cleaning is another area that needs more attention on vacation rentals. You’ll need to have the place professionally cleaned every time someone is scheduled to arrive. With an annual rental, we’re able to do inspections once a year and clean the property one time only, before each tenant moves in.
Finally, you must decide if you’ll use property at all. If you plan on retiring in four or five years and you don’t need the house until then, it makes sense to do a long term rental. However, if you want to use the property for your own vacations periodically, it might be better to rent it out as a vacation house and then you can use it yourself three or four times throughout the year.
If you have any questions about what to do with your investment property, please contact us at Cape Shore Property Management, and we’d be happy to discuss your options.