If you’re on the path to begin a career in real estate, and your goal is be a vacation home property owner, maybe now is the time to start investing in vacation home properties. It doesn’t have to be complicated.
In fact, in this article we will show you in 9 easy steps how you can develop your own short-term rental management business.
Step #1: Search for a triplex in a neighborhood you like
For those of you who are unfamiliar with a triplex, this is a house that has been converted into three separate apartments. Each floor must have an entrance and exit, and it needs to be self-contained.
Step #2: Ensure that local laws allow you to offer short-term rentals
Nothing ruins a business faster than when you don’t do your due diligence. Before you sign or buy anything make sure you’ve looked into local zoning laws. Check to see if there are laws against homeowners offering rooms or floors in their home for short-term rent. If there aren’t any, then you’re golden.
Step #3: Move into one floor and rent out second floor
While this may leave you scratching your head as to why, there are several reasons for this. One, when first starting out, you’ll want to live in a house that isn’t costing you any money to buy. This is where your renter comes in. By having a long-term renter, you’ll have a monthly income that can pay your mortgage. Leaving the last floor as your vacation rental property.
Step #4: Evaluate the risks
Before diving into the endeavor, it would be wise to talk to a real estate agent and consult your financial planner. The agent can point you in the direction of a good neighborhood and homes. While the financial planner can inform and help prepare you for the tax implications. Also, something to keep in mind when evaluating your risks is your long-term renter. They are your steady income that is help paying our mortgage. But, what if all of a sudden they need to leave? It would be wise to plan ahead and make sure that you always have enough capital to cover several months of your mortgage payment, in case your LT renter goes rogue.
Step #5: Prepare the floor to rent out on a short-term basis
This means making sure that your vacation rental is decked out with high quality furniture, appliances, sheets, towels, gadgets, and more. Make sure the living room especially is furnished with all the “fixings”, such as a TV, surround sound, comfortable couches, nice coffee tables, etc. Think of this as a multifamily leasing technology room. Meaning, you want it current and up-to-date. The goal is to provide your vacation renters with a premium experience that will help get them to spread the word about your property.
Step #6: Prepare a welcome packet
This is a nice touch that should never be ignored. While it seems simple, it will help give your renter important information about your property, the amenities you offer, and the community around them.
Step #7: Place your property on as many vacation home rental marketplace sites as possible.
This is a great way to advertise your property and get eyes on it. Again, think of these portals as yet another multifamily leasing technology resource. Because, not only does this help attract people to your rental, but also it will allow you to receive payment thorough a secure portal. Even though you live in the same house, the only way you want to accept payment is through one of these sites. Reason being, it is the easiest and most secure way to ensure that you always receive your funds.
Step #8: Be friendly
This is pretty much self-explanatory. It’s just good customer service. So, let your guests know that you are available for any questions, comments, or concerns they may have. And point them in the right direction for fun things to do around town, or good places to eat.
Step #9: Buy another property when you can afford it
This is the only way to grow your business. So, when the time is right, and the funds are there consider purchasing another property. Except maybe this time it can be a single-family property that is only used for short-term renters. Once that one takes off, purchase another. And so on and so forth until you have your own little vacation rental kingdom!