Do you dream about having a safe place to vacation where you can truly feel like you’re home away from home? Do you wish there were a way to make an extra income that doesn’t add more hours of work to your day? Does the idea of investing your money in something tangible, like land, calm your heart rate a little easier than the idea of stock traders pushing around your invisible money? If you answered yes to any of these questions, vacation rental investment might be just the solution you’ve been looking for!
Our Top 5 Reasons for Investing in Vacation Rental Properties
1) What could be better than investing in your vacation and making money on it? With the ability to use your vacation rental when you want to, you can choose exactly when you want to vacation and then choose to rent the remaining days out. This dual-purpose investment is great for the bank account as well as the relaxation you crave when traveling somewhere (now you know for sure that the bed is comfortable and the coffee brews just the way you like it).
2) Vacation rentals are booming right now. With the promise of additional features you can’t find in a hotel (think full-size kitchen, private patios, quiet locations), vacation rentals can charge a higher nightly rate. They also offer flexible timelines that guests love, whether they’re looking to be snowbirds in the winter for an extended stay, need an easy last-minute stay for the night, or a family that wants to have an extended Disney vacation. Because of this, vacancies tend to be lower in a vacation rental than a traditional short stay lodging facility.
3) Investing in vacation rental properties can afford you a plethora of tax advantages. While the mortgage write-offs alone are a great perk, there’s more! The IRS distinguishes between an investment property and a vacation home. Basically, if you rent your vacation home more than 14 days a year, it’s considered a business that comes with all the benefits of writing off deductions for costs such as maintenance and repair, marketing, and property management fees. Of course, do your own due diligence to confirm what is currently allowed before you invest.
4) Not only will you make a nightly rate for your vacation rental investment, but real estate value is always rising. This is an investment that pays in the short-term and long-term!
5) Opportunity awaits. Today this is an investment, but tomorrow who knows? While you may only be able to enjoy this home a few weeks out of the year right now, it could be a place to spend more and more time as your career takes a back burner to living your best life. Imagine, you can retire in a home that holds happy memories throughout your life that is already paid off. What could be better than that?