What should I consider when buying a vacation rental?
The key things to take into consideration when buying a vacation rental are:
- Type of property
All of these components go hand in hand. Once you’ve determined that you’ll want to use your property for investment purposes, then you’ll need to decide on an area that reflects your personal preferences. If you’re a big beach lover, you’re probably looking for a property (or plot, if you intend to build a custom home) right on the beach. You may prefer to purchase a home that’s inland and closer to shopping, dining, and entertainment. For those Gulf-front rentals, look at amenities the home or complex has to offer, the price, and projected ROI. Buyers of inland homes should focus on proximity to the nearest beach access points as well as amenities, price, and ROI. If the beach is out of reach, it’s also a good idea to look for properties with pools, whether private or communal. Be sure to be realistic about your budget when purchasing a vacation rental as well, especially if the home requires significant upgrades and will be blocked off for several months.