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Crucial Steps for Setting Up a Profitable Vacation Rental Property
Thinking about investing in a local short-term rental? Well, as you may already know, vacation rental properties can be a good way to supplement your income. Before you can expect to see any profits, however, you need to take the right steps to find, purchase, and set up your short-term rental property so that you can provide guests with a great experience.
Find Professionals Who Can Help
If this will be your first vacation rental home, you should think twice about going it alone when it comes to finding, preparing, and managing your new property. You can ease some stress for yourself during this complex process by hiring trained professionals to offer helpful guidance and services.
Start with an experienced realtor like Linda Ruppe who can point you in the direction of homes that will be perfect for your new vacation rental goals. She’ll also have knowledge about local listings to help you find the best deal on your investment property.
Once you have your new home selected, you may also want to consider hiring a professional decorator to help stage your vacation rental. Because setting up a short-term rental can be so different from setting up your personal home, an interior decorator can create a look and flow that will keep future guests comfortable.
Last, but certainly not least, you may want to think about working with a property manager to help market and manage your vacation rental.
Attract More Travelers
Hiring a realtor can help ease your search for the perfect vacation rental, but you also need to determine where to buy your new home. Know that certain locations may be more profitable for vacation rental owners than others, so consider one of these areas if you don’t have a specific location in mind already.
If you already have a good idea of where you will be buying your investment property, you can focus your energies on short-term rental features that tend to matter the most to travelers. These can be things that many investors take for granted, like free parking and patio space, but travelers are willing to pay more in rental fees to have access to these amenities. So to increase your ROI, make sure your new home includes sought-after features.
Build Your Business
Your vacation rental property is a business and should be treated as such, right off the bat. The more professionally you approach your venture, the better your success will be. With that in mind, take steps to set things up properly.
This begins with choosing a name for your business, which should be unique but not misleading or hard to understand. From there, you should choose a business structure and register with your state. Many people like an LLC since it is scalable, has tax advantages, and protects personal assets. It’s also easy to register a New Hampshire LLC via the web. With that done, make sure you create a business plan that identifies your goals and how you’ll reach them; if you need any funding, it’ll come in handy.
Protect Your Investment
Setting up a comfortable and attractive home is sure to keep your new guests happy when they’re in town. That said, you should also consider how to keep your new vacation rental property properly secured when it is not occupied. Hiring a property manager can provide some peace of mind, but even the best property manager can’t keep an eye on your investment property 24/7.
If you are worried about securing your investment when it’s empty, you should think about installing a security system. Monitored security systems are often a smart choice, and you can be confident that emergency services will be called in the event of a fire or break-in.
In addition to a security system, you will also need to purchase additional insurance for your short-term rental property. Standard homeowners insurance plans do not provide enough coverage for vacation rentals if they provide any protection at all. This is why most investment property owners choose to purchase additional vacation rental insurance for their rental homes.
Your vacation rental can boost your financial portfolio, but you need to be measured with every step you take during this process. Start by finding the right pros to help you set up your short-term rental and then take the necessary measures to protect your investment.
Look to Linda Ruppe for professional advice and assistance in meeting all your real estate needs.