4 Steps You Need to Take to Get Started As a Vacation Rental Investor

4 Steps You Need to Take to Get Started As a Vacation Rental Investor 

By: Natalie Jones

Vacation rentals are currently on the rise—more people are looking to get out of their homes while continuing to practice social distancing. If you're a first-time real estate investor, you may find that setting up a vacation rental can be pretty easy. However, it's still a big investment, so you need to know which steps to take in order to reduce stress, balance maintenance, and increase your potential for vacation rental profits. Here’s where to start. 

1. Create a Sound Financial Plan for Acquiring Your Property 

Investing in a vacation home sounds like a lot of fun, but buying an investment property can actually involve a lot of work—which could mean spending quite a bit of money in order to make a successful investment. You need to be honest with yourself before you make such a big decision and really go over each financial step in the process. Finding a home that’s a sound investment is the obvious first step, but you also need to find a way to finance your purchase. You might need to make a down payment of at least 20 percent, but if you can't afford to, a home equity loan might be favorable. 

2. Give Your Vacation Rental Property Some Personality 

People love renting homes over hotels for many reasons. Some renters like the added privacy, while others may just want access to a kitchen. Let’s be honest: Sometimes people just want to stay in a really cool home! So, don’t be afraid to really go all out when it comes to furnishing your vacation rental. Choose a unique color scheme, interesting decor or some local art to really give your space its own personality. Those bold touches will also make for some truly amazing property photos, which can increase interest in your listing. 

3. Pay Special Attention to Your Property’s Listing Photos 

Speaking of photos, it really is worth your time and effort to hire a pro to snap those listing shots (a seller secret that works for rental properties, too). After all, aside from amenities, photos are what attract travelers to a listing in the first place, so you want yours to showcase the best aspects of your rental home. If you plan on snapping photos on your own, be sure to research real estate photo tips beforehand. The right angle and lighting really can increase rental traffic for your property. 

When prepping your home for listing photos, consult with a professional stager from Opal Home Staging. Their professional designers use proven staging techniques and also offer vacation rental staging services.

4. Take the Proper Steps to Protect Your New Investment 

By now, you can see how much work and patience it takes to set up a profitable vacation rental home. And once you’ve put in all that effort, you are going to want to protect your property. You should think about installing various levels of home security, which will help guests feel safer as well. Some systems also allow remote access, which can be a major selling point for renters. Securing the right insurance can also protect your property and prevent you from being personally liable for incidents in the home. You can recoup insurance fees with tax breaks, which are numerous and profitable for vacation rental property owners. 

Investing in a vacation rental property is a good way to test your skills as an investor and a landlord. Like any test, doing your homework and developing a strategy is key, so make sure you have your plan thought out from start to finish before you start buying more properties. Before you know it, your vacation rental investment could just turn into a small fortune.