Owning vacation rental properties is an excellent way to build wealth in real estate. In our latest post, we will help you learn more about purchasing and marketing a new vacation rental property in Chicago.
Have you ever entertained the idea of investing in vacation rental properties? Doing so can generate excellent profits while allowing you the flexibility to use the house yourself whenever you desire. You decide when the house is occupied and when it is not. What the rates are, and when you feel like raising them. In some cases, vacation rental owners can make the same amount in a week that a standard rental would make in a month. While you might run across a tough guest from time to time, you won’t have to deal with permanent bad tenants or complicated lease terms.
Finding The Right Property
A few things to consider before purchasing a vacation rental property in Chicago or the surrounding areas:
- Location – Is the property in a nice neighborhood? What attractions are nearby? Are there any shops or restaurants within walking distance? Determine the type of rental property you want to offer, and choose its location accordingly.
- Maintenance Costs – How much will owning the property cost you? There is the regular cleaning after a guest leaves, in addition to repairs and landscaping costs.
- Demand – Are people coming to your area for a vacation? You don’t want to buy a vacation rental where nobody is vacationing. Take a look at vacation rental sites to find out what is available and how often they appear to be rented.
- Size – How much house do you want to maintain? A larger house might fetch a higher price, but it will also b more to clean and maintain.
- Renter Demographics – Who is staying in vacation rentals in your area? Is it families, couples, singles on business? Figure out who is staying, and market your property accordingly.
- Ownership Cost vs. Potential Monthly Profit – You’ll want to figure out how much you are spending in total each month to own the house. This includes the mortgage, mortgage insurance if applicable, homeowners insurance, utility bills, cleaning, maintenance, and more. Once you have an idea of these numbers, check it against how much the property will likely bring in each month. Does it make sense?
Make It Feel Like A Home Away From Home
People want to feel at home while still feeling as if it is a vacation. find the balance in your decor while keeping things simple yet aesthetically pleasing. Include some comforts of home, and then add a few more. Some ideas would be to utilize unused pantry space to include all sorts of kitchen gadgets such as a popcorn maker, waffle iron, and ice cream maker. You could also include a gift basket upon arrival or a fluffy white robe in the closet.
Photos and Description
When advertising your vacation rental property, be sure to include lots of great photos and an extremely well-written description. Show the rooms from all angles and give as much description as possible so potential guests can get a good idea of what to expect. You don’t want guests to feel as if you hyped up the property, on;y to be disappointed upon their arrival.
Sell The Neighborhood Too
Not only do you need to sell guests on the property, but you need to sell them on the location too. Let them know exactly what is around. Include local attractions, restaurants, and stores. You could make a map and include contact information to make things as simple as possible for your guests.
Get Lots of (Good) Reviews From Guests
Gather up all of your great reviews to use in your marketing. You can include reviews both from online sites as well as handwritten ones left in the guestbook.