For those with second homes, summer can offer the opportunity to cash in on your property by renting out. But, before you put your listing up on Airbnb, ask yourself the following 4 questions.
Are you willing to be on call 24/7
As a property owner, you’ll have to be on call to make repairs and take care of renter issues as they happen. If you aren’t nearby or can’t be one call you should hire a property manger who can respond to renter’s needs quickly and effectively.
Are you familiar with rental property laws?
You should familiarize yourself with federal, state and local housing laws in addition to relevant tax codes related to investment properties. It might be a good idea to talk to a real estate agent, attorney and financial advisor or accountant before hand. Most homeowner policies don’t cover damages or liability issues from renting your home out for commercial purposes – so you should speak with your insurance agent as well.
Is renting a smart financial move?
How will it affect your taxes? Do you know how much you can charge for your rental and how much you have to spend on cleaning, maintenance, rental insurance, renter damage and other expenses? Do you know how much you can charge and if what you will make can cover you expenses?
Is my home rental ready?
Does it need renovations? Is everything in working order? Do you have professional photos for the listing?
So, if you own a second home that you want to rent out for the summer season you have two options. You can choose to take on the extra work of renting it yourself – using the considerations listed above. Or, you can leave the work of maintaining and marketing your home to the professionals. The later will inevitably make you more money and save time. A new Kelton survey found that 67 percent of vacation homeowners who have rented their home both on their own and through a professional rental management company indicated they got more bookings using the professionals.