Everyone dreams of having their own home where they can spend their weekends and holidays in peace. However, most people don’t even have a home of their own, let alone a vacation rental property. For those who do have the means, it can be a lucrative business venture. It can also provide a form of escape and anonymity from the demands of daily life. A vacation rental property is just like a hotel, except that it accommodates travelers, rather than guests. With the current shortage of hotels, this business model is becoming more and more popular. In fact, there are currently close to 1 million vacation rentals throughout the world. So, why invest in a vacation rental property over a hotel? Here are the top five reasons.
1. Great Return on Investment
Anyone can start a hotel business, but it takes more to become a successful vacation rental property owner. If done right, a VR property can generate a healthy income that can substantially increase your wealth over time. The starting investment for a vacation rental property is $50,000 to $100,000. That’s a lot more than you’d spend on a hotel room, but you’ll make it back in a few years. The most successful VR owners have reported earning $500,000 to $1 million in just five years. That’s a very successful venture! A property earning $100,000 per year will take about seven years to break even, and it can take 20 years to become profitable. You can apply the same math to see how long it will take you to become wealthy from owning a VR property. The good news is that you can start investing in VRPs even with just a small amount of money.
2. You Can Earn Passive Income
Most people spend half their lives working for money. So, why not turn your investment property into a source of passive income? You can set up a good business and collect a monthly fee to cover the expenses of the rental property. You don’t have to do anything but rent out your property and collect the rent. Some vacation rental owners have reported earning $5,000 to $10,000 per month. You don’t have to be a real estate expert to run this type of business. You only need a deep understanding of your rental property market, and the ability to collect rents from tenants. Landlords who let their properties sit vacantly aren’t earning any money, so you need to be proactive about finding tenants. If you want a professional property management company to not only help you find tenants but ensure a profitable listing, then contact us now or call (407) 919-6682.
3. Tax benefits for business-related expenses
If you own a vacation rental property, you can deduct the full amount of your mortgage interest and real estate taxes. That’s a nice tax break you don’t get with a hotel. Some vacation rental owners have reported saving up to $30,000 on their taxes. That’s a huge benefit to anyone who’s looking to accelerate their wealth-building efforts. It doesn’t matter whether you’re single or married with a couple of kids. The amount you can save on taxes will vary depending on your income and filing status. There are many things that you can have on your tax deductions when it comes to a rental property. Such as housekeeping, gardening expenses, furnishing expenses, and even your property management company (*Hint — Nova Vacation Homes!).
4. Have More Time with Those That Matter to You
Owning a vacation rental property is like having your own vacation home that you can visit whenever you want. You can also take your children to their grandparents’ house for the week, or spend a long weekend on a tropical island. You don’t have to be in the office every day or even leave the city limits. You’ll also save a lot on travel expenses since you don’t have to fly to another city to visit your home.
5. Protection Against Scams and Fraud
The rental property market is full of fraud and scams. It’s difficult to know who to trust, so it’s best to stick with a proven business model. Owning a vacation rental property is a proven business model, so you’re less likely to fall prey to the fraudsters. There are a few things you can do to protect yourself. First, choose a suitable property. You don’t want to rent a hotel room or house with a poor location.
Choose a location with good access to amenities such as restaurants, grocery stores, and shopping malls. Secondly, choose your tenants carefully. Look for tenants with references from previous landlords. Make sure they’re people you know, not professional tenants. Finally, make sure your tenants always sign a lease agreement. That way, you can hold them accountable for any damages they make.
There are a lot of perks to owning a vacation rental property. If you’re looking for a profitable business model, it’s one of the best on the market. You can also earn passive income, enjoy the flexibility of short-term rentals, and protect yourself from scams and fraud. There are a few things to keep in mind, though. It takes a lot of work to find good tenants, and you have to be diligent about maintaining your rental property. It’s also important to do your research, so you know what you’re getting into and what you need to do to become a successful vacation rental property owner.
If you want a group of professionals who has over 15 years of experience in this field, then please contact us to book a FREE consultation. Every homeowner is connected with their own manager at Nova Vacation Homes to ensure the best communication efforts and efficiency in work.
Not Convinced? Check out what some of our current clients are saying about us:
“I have used Nova Vacation Homes for the past 3 years and always go back to them to have them handle my properties in Florida. Their team is extremely knowledgeable and was able to turn a profit for many of my listings.” – Richard.L
“Amazing experience with Frank and his team at Nova Vacations for my 3 Windsor Island properties. 非常好!” – Susan.L
Hiring a property management company is not for everyone. However, if you are looking to buy properties with the intent to rent or have multiple properties, then you are in the right place. A good property management company will be able to effectively and efficiently manage your properties. From rent collection marketing to even repairs and maintenance. It will also handle the legalities and paperwork aspect of renting your property. This includes handling finances and collecting rent from tenants, among other things.
How to Tell if A Property Management Company is Good
A good property management company is very important for landlords who wish to let professionals handle their properties. Maybe they are having problems with rent collection, or worry about repairs. If this is something you are struggling with, then you will need a property management company to ensure that their rental properties are properly managed
Keeping up with the Standard
Property management companies make sure that your rental property is always up to standards. This is done by arranging for repairs if needed or even doing them themselves. They also handle the paperwork end of things, including credit checks on potential tenants who wish to rent your property. This is very important for rental properties in a good neighborhood where competition for rental properties is high among prospective tenants.
Property management companies can be especially helpful when it comes to collecting rents from tenants as this might be a difficult process. This is because the company will have signed contracts with you and your tenants. This means that there are legal documents that they need to abide to when it comes to collecting rents from them. Furthermore, they also know the do’s and don’ts of dealing with renters and can implement them if needed.
Reasons to consider hiring a property management company
Increase Efficiency and Time for You
Ideally, you should hire a PMC if you are unable to take care of your rental property yourself. It might be because you don’t have the time or that it is more effective for you to turn all of these responsibilities over to someone else. A good property management company will get your rental property up to standards and even get it ready for potential tenants. It will also take care of finances, including collecting rent from tenants, which can be a difficult task.
Scaling Your Properties
If you are someone who is looking to scale your rental properties, it might be a good idea to look for a property management company. Preferably one that has the technical and industry expertise to help you grow. Managing multiple rental properties is a lot of work and often exhausting. Your time can be better allocated to something else while the professionals take care of the work.
How to Find a Good Property Management Company
Hiring a PMC is a very important step for landlords. Whether you wish to expand your properties or prioritize other ventures in your life, it is important to find the right fit. This means taking some time in researching possible companies and looking at their background, experience, and other necessary information.
As a first step in finding the right company, look for companies that have a good reputation with other landlords. This might be easier if you know people who have rental properties themselves and ask them which property management company to use.
You will want to look for a company with at least 10 years of experience. This way, they have had enough time in this industry to develop a good track record. Take a look at their reviews and rating online as well. They should also have professional training, for example by taking courses in property management or being members of reputable organizations that provide this type of information.
Make sure that their administrative team is well trained in accounting, catering to landlords who have rental properties. They should be able to handle everything from property management contracts and leases to collecting rent and finding qualified tenants for your rental property.
To sum it up, hiring a good PMC is important for every landlord. This is especially if they choose to have fewer responsibilities and hand them over to someone else. However, you should still take some time in finding the right one for your needs. Using recommendations from other landlords and doing background research on different companies can help narrow down your options.
If you are considering a property management company for your home in Orlando, Florida then check out Nova Vacation Homes. With over 14 years of experience in managing properties in Florida, Nova Vacation Homes is your solution to your rental problems.
If you would like to schedule a FREE rental evaluation then click here for more information.