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By Michele Lerner
While some real estate buyers start with the intention of investing in property and earning rental income, others ease their way into becoming real estate investors by purchasing a vacation home. Some second home purchasers hesitate to begin renting their property to long-term or short-term renters, but Christine Karpinski, director of Owner Community for HomeAway, Inc. at HomeAway.com says that property owners are throwing away potential income if they choose not to rent an empty home.
Many property owners fear the hassle of renting to strangers or think it is risky, but Karpinski offers multiple tips for potential landlords to ease their concerns at OwnerCommunity.com. Here are a few of her suggestions:
1. Check into all local and state regulations to make sure you are in compliance with all laws. In some locations you may need to apply for a business license. Check the homeowner association rules, too.
2. Choose a property management company or decide to rent-by-owner. In either case, you need to find out about advertising and maintenance issues.
3. Hire a housekeeper and maintenance staff unless you live close enough to handle cleaning and handyman services yourself.
4. Develop a marketing plan by finding out your target demographic for renters and how to reach them.
5. Get your house ready for renters. If you are opting for short-term vacation rentals you’ll need to stock the home with amenities renters want such as a coffeemaker, dishes, cookware and linens. Even a long-term rental may require some attention to details.
6. Set an appropriate rental rate. Whether you are renting the place for a year-long lease or by the week or the month, in order to attract renters you will need to establish the rent in line with the local market.
7. Create a system for screening renters. Make sure you do a phone or an in-person interview with the renter and get a deposit before giving anyone the key.
8. Be ready to handle complaints. With a short or a long-term rental, you will need to address any issues with the home. Karpinski recommends a “customer is always right” policy for vacation rentals to ensure that your renters give your place a good recommendation.
9. Cleanliness should be your top priority. The number one complaint among vacation home renters is that the property is dirty. If your place is clean you are more likely to attract repeat renters.
10. Educate yourself. Make sure you know everything you can about renting property by reading articles and websites and understanding things like contracts and landlord and tenant rights.
11. Act on any feedback. If your renters are complaining about something, you need to resolve the problem before they stop paying the rent. For short-term rentals, evaluate the feedback from each guest to see where you can improve.
The more attention you pay to satisfying your renters, the greater your financial return.
Michele Lerner, a real estate expert and freelance writer with 20 years of experience, is the author of “HOMEBUYING: Tough Times, First Time, Any Time”. |
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