logan piercy - Reasons Why You Should Buy Rental Real Estate

1. logan piercy - Reasons Why You Should Buy Rental Real Estate Get to know your home When you first purchase a new property, your first step should be to really get to know the home and all the systems that comprise the home. Each of your home's systems have a specific service interval and lifespan. The last thing you want to happen when you're renting out your home is for one of these systems to fail and have the cause be due to the lack of preventative maintenance or care. Services like Home Manager and Breezeway enable home owners and property managers to better track home systems and take care of preventative maintenance. The point? If you're considering a property manager, figure out what type of software they're using to manage the home's servicing. Plan to reinvest in your home If you're running your home as a vacation rental, you have to plan to reinvest in it with part of the revenue you earn from the home during the year. This will keep your home in ideal condition and tip-top shape as you rent it out. Remember, the more guests you have, the more "use" your home or condo or apartment will experience. This is especially true if you have a luxury home and people are paying top-dollar to rent it. Create a financial plan Understand you much your home will likely generate in revenues, which is dependent on three key factors. The specific location within the destination The level of luxury of the home Its size and amenities Professional vacation rental management companies use data to accurately predict the revenue of a home. Without access to that data, you'll have to do your due diligence and scour sites out there on the web and research rates. However, advertised rates aren't always a prediction of the revenue you can expect to receive and you'll be far removed from knowledge pertaining to occupancy rates.

2. Work with a knowledgeable real estate agent A realtor's knowledge of the vacation rental business is often varied. Some have great firsthand insight into the industry. Others know little to nothing about it. And, while they might be able to offer property management tips whatever their expertise might be, it's important that you work with agents who understand the business, especially in the early stages of finding, buying and managing homes that are intended to be used as vacation rentals. Vet several property managers Before you hire a property manager, especially one that manages vacation rentals, be sure you interview multiple companies. Do they have a local presence? What type of reputation do they have? Do they rank high on search engines like Google for searches relevant to your particular area? Find out how the property management company approaches these three key areas for managing your home: Maximizing your revenue generated from the home Caring for your home and ensuring a great experience for when you come to town Providing for transparent and honest communications Provide easy-to-use instructions When guests go on vacation and rent a home, they don't want to spend all their time figuring out how to use that home. Make it simple for them. How do you use the A/V systems? What about the TV, Cable or Apple TV? How about any music systems or the laundry?

3. Great property management companies will actually go through and detail out all of this for you so that you won't have to do it yourself. But, if you do it on your own, be extremely thorough and meticulous. Ensure proper levels of inventory One of the biggest reasons why guests rent homes and travel in groups is so that they can cook and eat their meals together. Some of the best memories created are around the eating and dining experience for the guests. So don't hamper it by lacking kitchen essentials. Properly stock the kitchen and other home essentials to ensure that nothing is lacking. If you're unsure, find a great property management company to help you identify what's missing. Be strategic about personal use Peak periods for vacation rentals, which typically revolve around either summer or winter seasons, otherwise known as high season, and fetch anywhere from 2x to 3x revenues, sometimes even more. If you're going to stay at your home, be strategic about going. Don't take up too much of the calendar during peak times as you run the risk of reduced revenues that could potentially be generated. Try to stick to the off season as much as possible. Think about your home like a hospitality business If you're running your home as a rental, treat it like a hospitality business. The care and attention that most fine hotels put into their facilities and rooms is second to none. While a property management company can help you with this, if you're going it alone, you need a genuine desire to please your guests. Treat them like friends or family. If it feels more like a nuisance to you, then you shouldn't manage the guests because your reviews will ultimately reflect the negative experience received. Be realistic about your pricing One of the biggest mistakes that home owners, and sometimes even property managers, make when renting out a home is to set the pricing too high. Be realistic about your approach here. Do the research. Check what others are charging and do overprice your home. Finding that sweet spot might be hard, but that's the trick if you want to have high occupancy rates. This is one of the property management tips that could make or break your year when it comes to financial growth.