Times are tough in the real estate world.¬† Although many industry experts are seeing an upswing, many individuals have been saddled with failing or failed property investments.¬† Booming tourist and resort areas have had fewer and fewer visitors. Vacation rentals, once incredibly popular, sit vacant and are costing a fortune to maintain. One option for owners has been the conversion of these vacation rental properties to long-term leases.
Although this might seem like a ‚Äėno brainer‚Äô, there are many issues of consideration.¬† Several homes belong to communities with strict association policies.¬† An investigation into possible penalties for homeowners is absolutely necessary when thinking about long-term rental. Another consideration is property management and maintenance.¬† Lastly, renter search and selection are essential in successful vacation rental conversions.
Homeowner‚Äôs associations have been viewed as lifesavers‚ÄĒ for some, and the ‚Äėbane of existence‚Äô for others.¬† If the association is a helpful support structure, it is generally interested in seeing that the entire community does well.¬† Check the details for regulations and stipulations that the association might have, like: the number and size of pets allowed, services that must be maintained and how often and renovation and remodeling limitations.¬† Because many of the communities were designed as short-stays, convenience, instead of durability, were the focuses.¬† There may be a need to upgrade and remodel to accommodate a renter.
A property management company maintains most vacation rentals. These companies charge hefty fees for things like: rent collection; landscaping services and waste removal.¬† Owners may want to consider including that cost as part of the monthly or bi-annual rent.¬† A consultation with local realtors will give clues for reasonable amounts for the community.¬† The goal may be for the simply cover the cost of the mortgage and not seek a huge profit.¬†¬† Another option is to move to owner management.¬† Although there is greater responsibility, the cost-savings might be worth the extra runaround.
Finally, finding the right renter for the property is crucial.¬† Not unlike other rental properties, conducting a thorough check will allow greater discernment.¬† Only the individuals with clear credit histories, strong references from previous landlords/managers, and those who are gainfully employed and show themselves to be very responsible, should be considered.¬† Owners would be wise to select an individual who would treat the property with care and respect.¬†
With fewer and fewer families having the extra incomes to enjoy the use of vacation homes, owners can find themselves riding out the economic downturn wave or reacting in a way that keeps them financially solvent.¬† As home sales finding similar challenges, the idea of converting short-term vacation homes into long-term leases, is not only practical but also protective.¬† Options are available for those willing to step into the adventure.¬† Adventures are not new to vacation homeowners‚Ä¶the initial purchase was the indicator.¬† Choose wisely!