Purchasing a Rental and Vacation Home

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Thinking about buying a vacation home on the beach to rent out when you are not there? Sites and apps such as Airbnb, house exchange, and FlipKey are aplenty and booming, ready for you to take advantage and reap the benefits. These options are growing in popularity, and the beach is a classic vacation destination. Despite this idea being a basic no-brainer for a dual home-owner, there are a few things you should ask yourself when purchasing a home to be rented out later.

How is the Neighborhood?

When thinking about renting out your home, it is important to take into consideration the neighborhood in which your home resides. Is it noisy or quiet? What is the demographic like of the community? Are you within a main city or town, out in the country, or within a suburb? Is it safe for families? All of these questions will help you to know what kind of renters you might attract. A great neighborhood to look into is Sea Pines on beautiful Hilton Head Island just off the coast of South Carolina. The neighborhood is safe and quaint and surrounded by stunning Atlantic beaches. The town, within walking distance, offers ample activities and restaurants for any palate, but is definitely not a city. Check it out here: www.oceanfronthhi.com/neighborhoods/sea-pines-real-estate.

What is the Upkeep Like?

As when purchasing any house, it is always important to look into the necessary upkeep for the potential home. How is the electrical? How is the plumbing? How is the roofing? Knowing the states of the major makeup of the home will allow you to budget any potential work and will help in figuring out if it is worth it to buy the home for renting. As you will be renting out your home, it is paramount to remember that you are essentially playing landlord and it is your ordeal if something is amiss – even when you are not there. Having a home for rent that lacks issue, i.e. working plumbing, safe electrical systems, not flooding when it rains, will provide you with great feedback from renters which will in turn bring in more renters.  

Based on Costs, Can You Still Rent Cheaply?

When looking at the price of your home, take into account whether or not you will be taking out a mortgage, the insurance, and any potential costs for upkeep. Having a rough estimate of these numbers will give you an idea of how much you might want to charge to potential renters per night, per week, per month, what have you. Before you buy, research what other rental homes on housing rental sites are charging so that you have a basis for your rental price point. This will help you decide how much you will be willing to pay for your beach home.

Renting out vacation homes from others has become increasingly popular due to the immense availability combined with the comfort of having your own place on vacation at a fraction of the cost that real estate companies might offer. Providing a home for rent that you yourself will also be using at your own leisure is a fantastic way to make a bit of extra money to help pay for the home while sharing the beauty of a favourite neighborhood, beach, city, or town.

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