It’s Sylvia weighing in on a question that I see being bantered about by real estate investors, baby boomers now free to buy a vacation home but reluctant to carry the full burden of ownership as well as vacation rental owners who are seeing great prices and great opportunities to expand their portfolio.
But given the shaky economy, natural disasters and man made ones that can threaten the ecological balance of many areas that are prime locations for second homes, one does pause to think.
But don’t think too long!
According to a newly released report from Homeaway, these startling stats should have you looking real hard at second home purchases easily converted in vacation rental properties:
– Nearly two-thirds (63 percent) of second home owners are able to cover at least half of their mortgage by renting out their vacation home to travelers
– The average second home owner who rents their home to travelers is generating more than $35,000 in rental income
– Approximately two-thirds of second home owners report their vacation rental bookings are about the same as or higher than last summer
So, if the time is right, and it certainly seems to be, what possibly could be wrong?
In the case of second homes, and purchasing with the thought or hope of defraying costs by using them as vacation rentals, it’s more the perception than the actuality of damage and misuse. The truth is, vacation rental guests—-for the most part—will be respectful of your property and the more communication you have with them before they are booked in, the better chance you have of their taking good care of your investment.
Rules of engagement should always be part of the conversation as well as your rental contract. Your expectations of what they need to do during their stay should be spelled out in writing and in your phone contacts.
But, just as guests don’t always know all the questions to ask, you as an owner don’t always have all the answers about useage right at your fingertips.
That’s where Second Porch comes in. You can tiptoe into the market, starting out renting to people you know, and people they know, and expanding beyond that. And when you consider renting beyond that social circle, Second Porch gives you that rare opportunity to see into the lives of guests inquiring, and vice versa. It’s not Big Brother, but like all social media, it does provide a level of transparency most vacation rental portals lack. If your guest’s Facebook profile shows them to be a family of 8 and they are telling you there will be 2 in their vacation stay, it certainly opens up the conversation and may reveal something that will make or break the deal.
Even more helpful in determining the status and behavior of a future guest is seeing if their network of “friends” overlaps your own. Its always nice to turn social pressure into a positive behavior motivator. Social pressure is as effective as anything else. People realize that digital reputation matters in a growing way.
So the answers to the questions about timing….could there be a better time to buy a second home, use it as a vacation rental and get your own second porch to enjoy and share with friends and beyond?
Second Porch: Rent & Trade Vacation Homes 