Owning A Vacation Home Is More Affordable Than Many Realize
North American Precis Syndicate
When you're not on vacation, your second home can be at work, too, earning money as a rental. (NAPS)
(NAPSI)—Relaxing by the water or in the mountains is more than a
once-a-year vacation for people who own a second home, and the explosive
growth of the vacation home rental industry has put the dream of affording a
vacation home within reach for more people. For those who already own a
second home, the increasing popularity of renting those homes to others is
boosting retirement savings, college tuition payments and disposable income.
How It Works
Here's helpful information to know when estimating how much you can earn
by renting out a second home to others: Vacation home owners who list their
properties for rent on one site, HomeAway.com®, garner an average of $32,000
each year, according to HomeAway data. That income
lets most owners cover a significant chunk of their mortgage payment each
year, 75 percent or more. The numbers get even more appealing if house
payments are split among more than one owner. In fact, nearly one in three vacation
homes are owned by multiple people, typically family members and friends.
What You Should Know
Here's what potential buyers should consider before taking the plunge into
buying and renting out a vacation home:
• HomeAway.com offers a free online tool called "Earn" that lets you enter
a home's address and other information, then presents a range of rental
income potential based on nearby high-performing, like-sized properties
already being rented out. The tool is available at HomeAway.com by clicking on
"List Your Property" or going directly to www.homeaway.com/earn.
• Calculate more than the mortgage. Vacation home owners often must pay
for additional insurance coverage and may want to hire professional cleaners
between guests. New owners may need to invest money to get a house
guest-ready with fresh paint and linens, as well as for professional
photography for the online listing. Also consider the tax obligations on the
home's income, as well as any local or state tax that may apply to the home
as a rental property.
• Be realistic about how much time the house will be available to renters.
The typical vacation home on VRBO.com is occupied by renters 18 weeks a year,
leaving plenty of time for use by the owners' family and friends. Owners who
use their homes during peak travel times will earn less than those who block
their calendars during less popular vacation times.
• Decide whether managing the property is a do-it-yourself project or is
better left to a professional property manager to handle reservations, guest
communications, cleaning and maintenance. Homeowners report they spend seven
hours a week managing their vacation homes when they do it themselves.
Vacation rentals continue to grow in popularity each year. Travel research
firm Phocuswright measures the private
accommodation industry in the U.S. alone to be worth nearly $37 billion by
the end of this year, a figure that is growing at twice the rate of the
For further information on the financial opportunity of renting a second
home, visit www.homeaway.com/earn.
"Vacation home owners who list their
properties for rent can cover a significant chunk of their mortgage payment
each year. A free online tool called "Earn" from @homeaway
can help you figure out how much you can get. http://bit.ly/2M1YjiK"
On the Net:North American Precis Syndicate, Inc.(NAPSI)