{"id":16676,"date":"2020-08-24T10:02:41","date_gmt":"2020-08-24T17:02:41","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=16676"},"modified":"2020-08-24T14:24:47","modified_gmt":"2020-08-24T21:24:47","slug":"eight-reasons-to-own-vacation-rental-properties","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16676\/eight-reasons-to-own-vacation-rental-properties\/","title":{"rendered":"Eight reasons to own vacation rental properties"},"content":{"rendered":"

\"\"While we earn most of our money from our mortgage brokerage business<\/a>, I started helping investors buy real estate some 5 years ago.\u00a0 Working in San Diego, I have seen just how profitable vacation ownership has been for long-term investors.\u00a0 If you follow me on any of my social sites, you will see that we just traveled to the Florida Panhandle to look at some of the best areas to own a vacation rental property<\/a>.\u00a0 \u00a0Subsequently, we entered into a strategic partnership with Vacasa<\/a>, the nation’s largest vacation rental property manager.<\/p>\n

Here is an incomplete list of reasons why we think vacation rentals make sense for most investors:<\/p>\n

1- Landlords get paid up-front<\/strong>.\u00a0 When this COVID panic hit, politicians in every level of government instituted eviction stays, denying landlords the right to remove tenants who couldn’t afford the rent.\u00a0 When you own a vacation rental, the typical stay is 7-30 days and you get paid by the renter before they occupy your property<\/p>\n

2- The capitalization rates are better than long-term leases<\/strong>.\u00a0 Properly managed, vacation rentals produce between 1.6 and 2.1 times the annual income which a long term lease would produce.\u00a0 A vacation rental requires much more active marketing and management and, for that, vacation rental property managers take a healthy management fee but, after that is accounted for, the net operating income is still better than a long-term tenant.<\/p>\n

3- Vacation rental properties are maintained better<\/strong> than those with long-term leases.\u00a0 This seems counter-intuitive but, because of the active management, the properties are kept cleaner and repairs are addressed immediately.\u00a0 The housekeeping service is usually passed on to the vacation renter and many of the repairs are covered by that renter if they break it.\u00a0 Routine maintenance is addressed immediately because the vacation rental needs to be in top-condition to be rented again– tenants don’t “hide” small problems (which can become big problems)<\/p>\n

\"\"4- Owners can take a vacation in their property.<\/strong>\u00a0 While using the property can eat into profits, there are seasonal vacancies which can be expected and, if the property is within driving distance, the owner can use the property for leisure Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

While we earn most of our money from our mortgage brokerage business, I started helping investors buy real estate some 5 years ago.\u00a0 Working in San Diego, I have seen just how profitable vacation ownership has been for long-term investors.\u00a0 If you follow me on any of my social sites, you will see that we […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,26,5,28],"tags":[545,496,547,546,544,543],"class_list":{"0":"post-16676","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-lending","8":"category-real-estate","9":"category-retirement","10":"tag-1031-exchange","11":"tag-real-estate-investing","12":"tag-vacasa","13":"tag-vacasa-certified-agent","14":"tag-vacation-properties","15":"tag-vacation-rentals","17":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":16834,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16834\/vacation-rental-investing-perdido-key-fl-purple-parrot\/","url_meta":{"origin":16676,"position":0},"title":"Vacation Rental Investing: Perdido Key, FL– Purple Parrot","author":"Brian Brady","date":"September 2, 2020","format":false,"excerpt":"How about a vacation property, on Perdido Key, Pensacola, Florida, which cash-flows with just 25% down payment? This Realtor-listed property sold for $238,000 in November of 2019 and this FSBO sold for $242,500, two weeks ago.\u00a0 Both properties are 2 BR 2.5 bath bungalows and are in the Purple Parrot\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/purple-parrot.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3107,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3107\/are-you-an-investor-looking-for-a-rental-home-that-will-stay-rented-buy-a-home-thats-worth-living-in\/","url_meta":{"origin":16676,"position":1},"title":"Are you an investor looking for a rental home that will stay rented? Buy a home that’s worth living in","author":"Greg Swann","date":"May 12, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). I wrote this last Tuesday, but it coincides nicely with Barry's post this morning. \u00a0Are you an investor looking for a rental home that will stay rented? Buy a home that's worth living in I represented tenants\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10037\/capture-appreciation-and-cash-flow\/","url_meta":{"origin":16676,"position":2},"title":"Capture Appreciation and Cash Flow","author":"Cooksquared","date":"October 12, 2009","format":false,"excerpt":"The advantage of investing in today\u2019s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don\u2019t exist, but in down markets, a smart investor can pick out these diamonds among\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17666,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17666\/bloodhounds-end-of-year-letter-to-our-rental-property-investors-thriving-by-surprise\/","url_meta":{"origin":16676,"position":3},"title":"Bloodhound\u2019s end-of-year letter to our rental-property investors: Thriving by\u00a0surprise.","author":"Greg Swann","date":"December 31, 2020","format":false,"excerpt":"I have four listings in the hopper, and the whole first quarter looks strong. So far, I am unable to rid myself of the NAR, but I'll be working on the problem as I go. I don't need ARMLS for rentals \u2013 Zillow alone is better for us \u2013 and\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/12\/jeff-w-8jWqx3fS0oI-unsplash-1-480x308.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3253,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3253\/investors-are-coming-back-to-the-phoenix-rental-home-market-and-with-the-right-business-plan-theyll-make-money\/","url_meta":{"origin":16676,"position":4},"title":"Investors are coming back to the Phoenix rental home market — and with the right business plan they’ll make money","author":"Greg Swann","date":"June 21, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Investors are coming back to the Phoenix rental home market -- and with the right business plan they'll make money Rental home investors are coming back into the Phoenix real estate market, and this is a good\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13288,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13288\/real-estate-investment-tips\/","url_meta":{"origin":16676,"position":5},"title":"Real Estate Investment Tips","author":"Tony Sena","date":"September 20, 2010","format":false,"excerpt":"Finding a \u201cbargain\u201d property to purchase for rental purposes takes some analytical skills, market knowledge, and a real estate agent who is in sync with your investment goals. Some investors would consider the ideal rental property to be a three- bedroom, two-bath house in good repair, or needing minor touch-ups\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=16676"}],"version-history":[{"count":5,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16676\/revisions"}],"predecessor-version":[{"id":16701,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16676\/revisions\/16701"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=16676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=16676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=16676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}