Investing in a Vacation Rental Property

On the surface, the state of Utah doesn’t appear to be an obvious vacation destination, nor is it a place for real estate investors to look for rental properties.  After all, it’s not a coastal state, nor does it have a warm climate all year long.  Utah also lacks the reputation for being a haven of excitement and entertainment that places like Las Vegas or New Orleans have.  But while it lacks a flashy nickname like “Vacationland” or “The Sunshine State,” Utah is a viable vacation destination, and investing in property to rent out to vacationers can be a smart move that ultimately works out for savvy real estate investors.

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What Utah lacks is one marquee vacation destination that attracts a surplus of tourists every year.  However, the Beehive State makes up for it by having a wide variety of niche vacation spots scattered throughout the entire state, giving potential investors a nearly endless list of places where they could buy property for the purpose of renting it out to vacationers.

The northern part of the state is home to Utah’s major cities like Salt Lake City, Provo, and Park City, where there are religious and cultural attractions that regularly bring tourists to Utah, as well as ski resorts that will consistently attract visitors to Utah during the winter months.  Meanwhile, in the southern part of Utah, there are beautiful geographic features such as Bryce Canyon National Park, Canyonlands National Park, and Lake Powell, which bring tourists seeking thrills and excitement to Utah, usually during the summer months.  This gives Utah a plentiful number of locations for investors to find property to rent out to vacationers throughout the calendar year.

Typically, the northern part of the state around Utah’s biggest cities is going to be a better investment opportunity than in the southern part of the state near several of Utah’s national parks.  Property values near the city are going to be higher, allowing owners to charge more, and the cultural destinations of Salt Lake City and Park City will generally attract a more affluent vacationer that’s willing and able to pay more for a rental property than in the south.  Of course, southern Utah offers a great niche vacation market, where vacationers will be bound and determined to go, regardless of cost.  In either case, Utah is able to draw such a steady stream of vacationers to both parts of the state, and so a quality property that’s reasonably priced should have no problem finding renters on a regular basis.

Of course, having a rental property and filling it on a regular basis does not guarantee a massive or life-changing profit.  The cost of property taxes, the usual upkeep of a property, and other expenses will generally even out with the income that comes in from renting out the property.  However, with an attractive property that’s kept in good condition and marketed properly, there’s a chance to make some profit from the property, especially considering the demand for rentals throughout Utah is high.

With Utah attracting a high volume of vacationers, a quality property should have no trouble being filled on a regular basis, which means the property will produce a steady stream of income, and owners will rarely have to worry about losing money because they can’t find renters for the property.  Between that and the likelihood that property values in Utah will continue to bounce back from last decade’s housing crisis, investing in rental properties in Utah is a sound and safe investment, even if the monetary returns aren’t massive.

Investing in A Mountain Home: What You Need to Know

When the market in real estate flourished in the early 2000‘s, mountain vacation homes were bought by those with a large salary or a lot of cash. The market nowadays have set another view for mountain vacation homes and secondary homes with reasonable pricing and rock bottom interest rates. Even though vacation homes before couldn’t pay off on their own, there’s a good chance that today’s vacation homes can.

When mountain vacation homes were deemed luxurious, the idea of having them rented out for several weeks to years to fight off property expenses usually leave homeowners cashing in short. Nevertheless, the market nowadays is full of vacation homes and log cabins that are for sale. Mountain vacation properties present now have a likelihood of garnering increased monetary flow if the new owner is diligent enough to make it happen.

A reasonably priced mountain vacation home bought within or below the standard value would require renting for a minimum of 3 months to begin earning on its own. Mountain vacation homes are ideal as properties for rent during summer months, but can function evenly for cabins situated in getaway or ski locations which can prolong their rental period in over a few months of summer. Getting your mountain vacation home rented will require to book early. Offer a rental price discount for property booking for the following year to inspire renters to come back.

A big cash saver and necessary step to getting your mountain home to earn on its own is to get rid of any middleman involved. Today’s management agencies run you dry by sucking in as much as 40% of your rent earnings. Dealing with rent and maintenance isn’t as challenging. It’s important to choose a qualified property manager as opposed to a management agency. Run background checks since a manager with a bad management history can significantly strain your investment. Foster a friendly relationship with nearby services close to your rental home and have a calendar for convenient rental scheduling.

Choosing a suitable area for your vacation home will play a crucial part in its ability to earn on its own. You’ll want to choose a home in a location that tourists would desire to rent. This means living close to a local attraction including a wonderful mountain setting. Once you’ve picked a place for your mountain vacation home, you’ll need to ensure the place doesn’t charge hidden costs for owners or expensive rent permits for an under-a-month rental.

Another thing to take note is consider hiring a realtor to assist you. Realtors can guide you through the tedious process in a simplified manner. Regardless if it’s mortgage or financing, a realtor will help you arrive at an agreeable transaction.

If you’ve made a decision to purchase a mountain vacation home and getting it to pay for itself, make sure you’re readily invested in terms of finances, time, and maintenance. If you feel that you are, then it’s worth taking the plunge for a long term mountain vacation home investment. There are risks and competition at some point, but when you deal with them efficiently, you can see yourself earning over time without regrets.