Investing in a Vacation Home: Where to Begin

cabin

With the advent of online recreational reservations and bookings, these past few years have seen the most vacation homes in U.S. history. According to research and statistics, there are around 2.9 million Airbnb hosts around the world. Those hosts own around 2.4 homes each as the total listings on Airbnb are around 7 million. An average of 14,000 new hosts actually joined the platform per month in 2020. Keep in mind that this occurred during one of the worst pandemics in recent history. It seemed that a lot of people transformed the homes they are not using as an Airbnb qualified house.

Converting your summer home into a host vacation home can be one of the few projects which can net you and your family a few positives. Aside from earning a profit out of a static asset, you get to let others experience the privilege of owning a summer home even just for a short while. The private accommodation industry grows hand in hand with the tourism industry. With people having a little more money than they can spend on, most opt to go travel the country. The whole industry alone in the U.S. was worth $36.6 billion in 2018. An average summer home can be rented out to a profit of at least $11,000 annually. It can go up to as much as $33,000. Your typical range of prices will vary depending on the location of the private accommodation. It is literally one of the best passive income-earning assets you can invest in.

It begs the question, however. How does one transform a typical summer home into a private rental home? There are three targets a serious investor might look at to improve their homes for conversion.

Exterior

First impressions last. A good vacation home must at least be presentable and easy to look at with your eyes. While old and rustic homes might have an appeal to them, these slights must be deliberate and intended. You first have to decide on the theme of your vacation home. Most private accommodations that are attractive summer homes look like log cabins or cozy brick houses that anyone can easily settle into. Paint over the dingy walls. Rid yourself of the moss and mold growing on the foundations. Settle in with a landscape artist and gardener to arrange your preferred decorations outside. A little garden can go a long way to impress your potential guests. Installing a barbecue pit where your visitors can roast and cook their own food will make your vacation home memorable. The primary purpose of the people renting out your second home is for them to get a vacation away from their daily routine. You must remember that most of your visitors might be coming also from the city. Providing them a genuine vacation experience is key to get return customers and great referrals.

Interior

cabin bedroom

The interior finish and fixtures are just as important as the exterior. Maintaining the inside to be neat and tidy is one of the fundamental and vital things you must do to keep your vacation home enticing to live in. Cozy is the keyword. The inside must look so incredible that your visitors will second guess going outside and visiting the tourist spots near your area. Providing cozy couches and a state of the art big screen television will tempt them to stay inside. You can also apportion one of the rooms as a game room where you can muster games and other amusements for the entire family. Just make sure you have the appropriate games for all ages. You must also keep everything in working condition. Renovating the home kitchen plumbing fixtures and the plumbing in your comfort rooms should make sure you have working basic comforts for your guests. Repairing faulty electrical wiring will help keep the place free from accidents and fires. Keeping the chimneys or fireplace free of debris and other blockages should be a pertinent goal in your vacation home checklist.

Extras

Lastly, a good host must be able to think about every need the guest might require in a vacation home. A vacation home needs complete linen sets in every bedroom and sleeping area. Soaps, shampoos, and towels are basic to have in a complete bathroom. The entire vicinity must be accessible 24 hours a day. It also must have Wi-Fi access or streaming services to at least keep in the background as white noise. It wouldn’t hurt if you left some of your old books for them to borrow while inside your home. Most of these vacationers couldn’t care less about internet-related activities. Giving them the option to read hard paperback books will make them feel like they are vacationing. Lastly, providing them with maps and a list of personal recommendations will leave your way of hosting your personal touch.

As an owner of a vacation home, you can transform it even more into a viable investment. Just know what your target audience likes.

Share on:
Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on reddit
Share on pinterest
Scroll to Top