Resort Realty is here to help you make the most out of your vacation rental!
What It Takes to Rent Your Vacation Home
Your vacation home on the OBX is your little piece of paradise. A place where you can escape the stresses of everyday life as you relax on the beach, play a round of golf, or just take a nap on the porch swing.
You may be thinking about renting your home for a variety of reasons. Maybe you haven’t used it as much as you planned and don’t want it to sit empty. Maybe you need to offset the costs of owning it. Or maybe you simply want to share your amazing vacation home with others.
One of the first decisions when starting the vacation rental process is whether to hire a management company or manage the property yourself.
Determine Your Goals & Objectives
You may not think of your vacation home as a business, but when you make it a rental property, you’ve just entered into a potentially profitable business endeavor. As with any business, it is important to set your goals.
Decide how many weeks you’d like to reserve for family and friends. Next, determine your financial objectives.
• Do you want to offset a portion of your costs?
• Do you hope to have your rental revenue pay for all the expenses associated with owning your vacation home?
Most vacation rental markets average 12 peak weeks. Other costs (e.g., utilities, association dues, etc.) are paid by earnings from approximately 5 non-peak weeks.
If your monthly mortgage payment is less than or equal to the rental rate of 1 peak week, and you rent approximately 17 weeks a year, your property should come close to breaking even.
Example: If you own a condo with a monthly mortgage of $2,000 and rent your home for $2000 per week, you’d only need to rent 12 weeks to break even on your mortgage payments.
Meet & Exceed Guest Expectations
From cozy condos and classic beach cottages to 20-bedroom homes with luxury, resort-style amenities, Outer Banks vacationers look for a wide range of accommodations when looking for a vacation rental. No matter the size or location, ensure your vacation home is well-maintained, fully-equipped for the total number of guests it accommodates, and updated every few years.
Things to consider
- Furniture must be free of obvious damage, tears/rips, and stains.
- Lamps and bedside tables should be tall enough to provide reading light.
- Window treatments should provide privacy and the ability to make a bedroom dark for sleeping.
- Decor is updated and appealing
- Personal/family photos and memorabilia should be minimal.
- Minimize clutter (old magazines, newspapers, melted candles, etc.)
Things to Consider When Renting Your Home
After making the decision to rent your home, you’ll need to determine how involved you want to be in the rental process.
Renting your vacation home requires time, effort, and dedication. Many vacation rental homeowners either choose to hire a property management company or “rent by owner.”
Tasks involved in renting your vacation home:
- Equipping your home with popular guest amenities
- Setting comparable/competitive rental rates
- Marketing and advertising your home
- Responding promptly to guest inquiries
- Taking reservations and payments from guests
- Collecting and remitting sales tax
- Handling guest requests and complaints
- Hiring service providers (housekeeping, maintenance, landscaping, pool/spa, etc.)
- Scheduling housekeeping and maintenance during turnover between guests (~ 4 hours)
- Is your home going to be pet-friendly?
- Are you going to rent to non-family groups?
- Will you allow partial weeks or stay flexible dates?
You may want to consider hiring a property management company if you don’t have the time or the resources to accomplish the tasks involved in successfully renting your vacation home.
Property Management & The Resort Realty Difference
A property manager can help alleviate the stresses that come with renting your vacation home. From guidance on price point to maximizing your rental potential, a property manager can help you reach your goals. Resort Realty, an Outer Banks vacation rental company, has been in the property management business for over 30 years. They have the local knowledge of the Outer Banks along with a dedicated team, local employees, and a flexible approach to you and your home that allows maximum income along with a tailor-made plan.