If you're ready to invest in a vacation rental to ensure you always have a haven for holidays, fun, and relaxation, it's important to ask the right questions and complete the appropriate tasks. Acquiring ample information helps you decide if a prospective property is right for your needs. Check out a few things you should do when purchasing a vacation rental.
1. Learn About Any Restrictions Associated with the Property
Many cities and counties have restrictions that limit how you can use property; these restrictions are particularly common in areas with a lot of vacation homes. Some laws may restrict your ability to rent the property or limit the number of people that can occupy your condo.
If you plan to rent your property to defray the costs of ownership, it's essential to choose a property that's conducive to this goal. Should a town law state that you can only rent your condo a few months of the year, this will limit your potential rental income.
Or, it may not be legal to park RVs, trailers, and boats on residential property. If the condo is located in an area where boating or camping is popular, this might make your property less attractive to potential renters.
2. Understand All the Costs
In addition to your mortgage, real estate taxes, and property insurance, there are usually other costs to consider when evaluating the affordability of a property. Remember, services that are included in the cost of property taxes in some areas are a separate charge in other towns. Expenses may include:
- Trash removal
- Homeowner's association (HOA) fees
- Property maintenance
- Property management fees
- Water and sewage bill
3. Consider the Accessibility of the Property
A vacation home is a space that should be easy for you to get to. After all, you don't want it to be so cumbersome to visit the property that you don't use it as much as you envisioned.
If the property is within driving distance, make sure the route is one that you're comfortable taking. Perhaps your property is better accessed via train or airplane. Check that there's an airplane or train station within a reasonable distance to the property.
Should your transportation plans involve a means other than driving, you'll need to decide how you'll get around once you're at the property. Do you want to rent a car? Or, do you have a second car you can keep at your vacation home?
Keep the logistics and costs of your transportation in mind when deciding if the property is right for your lifestyle and finances.
Contact a local real estate agent to get help finding vacation condos.