Are you thinking about investing in vacation rental properties? If so, make sure you read this blog post, which clearly explains the 3 things you need to know before investing in vacation rentals in Illinois…
Do you want to invest in real estate that earns you more money for shorter term rentals? That might sound like an impossible goal but it is entirely possible when you own a vacation rental property.
Vacation rental houses are a short-term rental that you own and you rent it out to vacation-goers who want to enjoy a nice vacation in the area where your property is. Here are 3 things you need to know before investing in vacation rentals in Illinois
3 Things You Need To Know Before Investing In Vacation Rentals In Illinois
#1. It’s A Different Type Of Renter
Vacation rental properties attract a different type of renter. While most residential rental properties attract renters who need a place to live but may not want a mortgage or be able to qualify for one, a vacation rental property renter is totally different – they’re often people who have the money to enjoy a beautiful home for their vacation.
But this means something important: they’re on vacation so they’ll have high standards about the house and they’ll need it to be furnished with everything (from furniture to pots and pans).
But it also means that they’ll probably be willing to pay more for a beautiful house in the short term, compared to what a residential renter could pay.
#2. It’s A Different Type Of Property
Many residential rentals are in areas that are affordable, close to schools and work, and are a place where renters might want to live. But a vacation rental needs to be located conveniently close to amazing vacation spots – including famous landmarks or the beach.
A vacation rental property needs to be comfortable, furnished, and hands-free for the renter since they can’t be expected to deal with any problems while on vacation.
So, a residential rental might be nice and simple but a vacation rental property needs to be convenient and well appointed!
#3. Ups And Downs
With a residential property your goal is to put someone into the property and leave them there all year ‘round. But with a vacation rental property, you may be subject to the fluctuations of the tourist season in your area.
If you get a lot of people visiting during parts of the year, such as people from colder climates visiting your state during warmer climates or people coming to your mountainous area for skiing, then you may need to figure out what to do during the season when there aren’t a lot of tourists. Will the house sit empty?
Owning a vacation rental property can be a lucrative type of investment if you are aware of these 3 things you need to know before investing in vacation rentals in Illinois.