Purchasing A Beach House As A Rental Property? Consider These 2 Things
Looking for a summer home that is close to the beach but want to rent the place out when you are not using it? Using a beach property for rental income is a smart way to make money on a temporary summer retreat. If you have a property in a high demand area, it's possible to make enough money on the property to completely pay for all your expenses. It could potentially make your summer vacation spot completely free for you to stay in. However, this all depends on if you pick the right property. These are 2 things that you should consider prior you buying that summer beach house.
Look At All Potential Costs
Home ownership has a bunch of costs that go beyond your mortgage payment. You also must consider homeowners insurance, which will be more than standard home insurance since you will frequently have renters going in and out of the home. Your taxes will also be higher, since your summer beach house will not be your primary home.
You'll also need the help of a property management company that will handle finding renters for your property; you'll also need a housekeeping service that will take care of things like washing the sheets and towels and overall keeping the home clean. If maintenance needs to be done, you will need to subcontract that out as well unless you plan on driving to the home to do all the work yourself.
Investigate Rental Demand All Year Round
You won't have problems finding renters during the summer, but will there be problems during the winter? Do some research to find out if the location the home is in has tourist activity all year round.
For example, there may be a ski resort nearby that still attracts visitors during the winter. You may not be able to charge the same high price you can during the summer, but you can still find renters that are looking to stay in the area during the colder months as well. If there is not demand during the winter, make sure you are able to afford those months where the home is unoccupied and not earning any rental income.
When you are looking for a home in a town that is unfamiliar to you, it always helps to work with a real estate agent. They can give you more information about the area and help guide your decisions for picking the perfect summer home.
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