8 Dos and Don�ts of Owning a Vacation Rental

Are you considering a vacation home purchase that will produce valuable rental income when you�re not using the property? If so, check out these dos and don�ts to get the most out of your financial investment.

DO: Create a financial plan. This will help you predict the potential revenue and expense of owning a rental property.

DO: Work with a knowledgeable Realtor� when buying. A good agent can help you find a property in a good location with the best rental potential.

DO: Get to know your home. Carefully check all parts of the home and repair and replace items that need it.

DO: Choose a property manager carefully. Check their reputation in the area, then ask how they�ll: Maintain the home so it stays in good condition, communicate with you and maximize your revenue.

DON�T: Ignore preventive maintenance. It�s better to fix or replace that aging water heater or HVAC system now than have it break during a renter�s stay.

DO: Be strategic about using the home yourself. If your goal is to maximize rental income, stick to planning your stay during the off season.

DO: Plan to reinvest in the home. Figure you may have to spend 1% of the property value each year on maintenance.

DO: Be realistic about pricing. Research area rental rates and don�t overprice. Your ultimate goal is to make a reasonable profit and that will require a high occupancy rate.

Sources: entrepreneur.com, sfgate.com, Morris Invest, blogs.netintegrity.net