In most instances, becoming the owner of a vacation home is a wonderful thing, especially if the home is located in an area where the owners enjoy visiting. But when the vacation home is located in an area that is too far away or an area where the owners do not visit often, it can quickly become a drain on both finances and time. If you have recently inherited a vacation home that does not fit into your current life or plans for the future, turning it into a rental property profit center may be something to consider.
Consider the potential for rental income in the area
The first thing to consider when determining what to do with a newly inherited vacation property in a location that is not convenient for you to use is to determine if there is a good vacation rental market in the area in which it is located. If current and future vacation trends are not favorable, selling the home may be the most financially sound decision for the new owner. To determine this, property owners can contact the local Chamber of Commerce where the property is located or the applicable state board of tourism for more information.
Consider the amount of money needed to put the property into rental condition
Another thing to consider is whether or not the vacation home you are inheriting can be ready for rental without spending too much on repairs, or updating. If the home has been vacant for an extended period of time, the new owners will want to have it inspected by a reputable building inspector before making a final decision. As part of this process, new owners of vacation homes will also want to check to see what building and safety codes are in effect and whether the home is in compliance or can be made compliant in an affordable manner.
Consider the best way to provide good management from a distance
Owning a rental property that is located a considerable distance from your own home is usually not the best idea. However, if the property owner can partner with a reputable, local property management expert, it can become a profitable arrangement. Vacation homeowners should look for a property management company that can provide references from other satisfied rental property owners who are in a similar situation.
In addition, it is important to choose an agent who will be able to help you watch over the property, screen vacation tenants thoroughly, and collect and process rental payments promptly, including transferring your funds to your bank account. It is also important that the agent can help you arrange maintenance, cleaning, repairs, lawn care, and off-season winterization, if necessary.