Buying a Vacation Property To Stay and To Rent

By
Education & Training with House Proud Ottawa-Ontario-Canada

There are a great number of people who are attracted to the price of homes in distressed areas.  Okay, Florida and Arizona come to mind.  Many of these Buyers are thinking that they will buy something cheap now, enjoy it when they are able to get there and rent it out when they are not able.  Some Buyers are also thinking that the day will come when they will spend at least 6 months every year in their vacation retreat.  These Buyers need to think of a couple of things before signing the offer.

  1. Is your new home in a rent - attractive area?  Maybe that three bedroom home in a nice family community is perfect if you are going to be living there year round.  Now, what are you really looking for - something near the beach, near a community centre, surrounded by a golf course, in a gated community, managed by a HOA, close to the airport, walking distance to shops and restaurants, etc?  Then, that lovely family home is not what is going to address your needs - or those of possible renters.
  2. Are you expecting your friends and family to rent your place?  Well, they are probably thinking that they don't have to rent it, just visit you when you are there.  Also, that prime time that you want to save for yourself is the prime renting time.  So, now you have to consider that your renters are going to be strangers.  Are you up to managing your property, collecting rent, ensuring the place is clean and rentable?  You may have to hire a property management company to take care of your vacation home.  
  3. Can you furnish your new home to be satisfactory for you and for renters?  I don't think you are going to be buying the most expensive gadgets, expresso makers, computers, etc and leaving them available.  Oh sure, it will look good on your advertisement that you have only top of the line things in your home but then you will also be asking top of the line rent.  Is there a market for that type of home in the area? Maybe you just want to leave your junk and second hand things (that you long distance haul from home). Well, you might consider that a junky lived in look is not attractive to most picky renters.  Of course, if your rates are dirt cheap then the furniture and furnishings can be minimal as well.  
It is not easy to be a landlord of a vacation home.  Take time to consider your own needs and study the rental market in the area BEFORE buying.  You will save yourself a lot of angst.
 
Just because I would love to rent this place....  I included a photo of a rental in Tuscany.
 
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Topic:
Real Estate Best Practices
Groups:
Bartender, Make it a Double
Buyer Information - What Buyers Need to Know in Today's Market
Addicted to Active Rain
BananaTude
Almost Anything Goes
Tags:
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vacation home buying
zingers

Comments 21 New Comment

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Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Beth:  Unless you live in the same area, managing a property from a distance would be some type of migraine headache.  

Michael:  You had the perfect landlord and property manager - a legitimate complain dealt with expeditiously.  

Sally:  I know exactly what you mean.  It is okay for me to rent but to be the owner?  ARG!!!

Shane:  Some people think it is so simple.

October 12, 2012 06:24 AM
Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Sheila:  I am always to grateful for your support. 

Debbie:  I looks so good - probably with an incredible view.

Sharon:  I would probably go crazy with a bad renter.  I am saving myself from prison by not owning a vacation home.

Thanks Patty.

October 12, 2012 06:26 AM
Rainmaker
496,726
Michelle Cooks
Pensacola, Pace & Gulf Breeze Property Management
Charles Stallions Real Estate Services

Great advice as an investor I always buy with renting in mind even when it comes to our personal home

October 13, 2012 08:52 PM
Rainmaker
668,186
Mary Yonkers
Erie/PA Real Estate Instructor
Alan Kells 1-814-881-7548

Valerie,  for those reasons Dave & I decided not to buy and/or rent vacation home. Several of Erie friends have vacation homes/rentals in sunny places.

PLUS, one other reason the Yonkers do not have vacation home/rental property:  we love to travel to different destinations.  Our last trip took us to Montreal & cruise up the St. Lawrence River.  Wonderful trip!

October 14, 2012 05:44 AM
Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Charles:  You would know these things from your experience.  There are a lot of seniors who are just now thinking of vacation properties.  I hope this helps them buy or rent.

Mary:  That is one of the reasons why we would not buy - we like to go to different places as well.  Now, as more time becomes available, the idea or renting for a month or longer is starting to be appealing.

October 14, 2012 09:02 AM
Anonymous
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Rainmaker
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Valerie Zinger

Home Organizer
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