Getting the highest return from your vacation home is easy when you take the right approach. But many homeowners make the mistakes that keep them from creating a steady source of income through their short-term rental properties.
Holiday homes in Davenport are a popular choice for today’s travelers, and the homeowners who run their vacation rentals like a business reap the rewards that a home investment provides.
The Right Vacation Rental Listing
Vacation homeowners use Airbnb and other rental platforms to market their properties. This makes it easy to reach your ideal guests and showcase the features and amenities your home offers.
But you need to keep your listing up-to-date to reflect any changes to your home, the surrounding area, or your rates.
Schedule periodic updates throughout the year so that prospective guests have the right information and avoid unwanted issues.
Photographs and videos need to be updated over time. Use professional photos to enhance your home’s appeal. This is well worth the investment and will result in more bookings at higher rates.
Protect Yourself and Your Vacation Rental Home
Problems can arise when you own a vacation rental home. So protecting yourself from common rental issues can save you time while helping you avoid unwanted headaches.
You should have a comprehensive insurance policy in place. This gives you and your guests’ financial and legal protection against damage or physical injuries that occur on your property.
Failing to have the right insurance plan can lead to costly legal battles. You may be held responsible for injuries and other damages, forcing you to cover large expenses that cut into your profits.
A rental agreement is another form of insurance that protects you and your guests. The right rental agreement outlines the terms related to bookings and the use of your home.
Managing the Money
Financial management is a critical part of running any business. So your vacation rental home should be no different.
Create a separate bank account for the money you earn through your rental property. This helps you track expenses while making it easier to gather the financial information you’ll need at tax time.
Businesses have their own unique tax, licensing, and permit requirements. You need to understand how these and other factors impact your vacation rental business.
Some homeowners create a limited liability company (LLC) structure for their vacation rental homes. This is typically more practical when you own multiple rental properties.
Although an LLC structure provides many benefits, it can incur additional costs that further reduce your profits. But an LLC may give you additional protection for your home.
Consulting with a real estate professional who understands these and other business considerations should be your first step.
The holiday homes in Davenport offer you and your family a profitable home investment that supports your long-term financial goals.
Team Donovan helps home buyers find the perfect vacation rental properties in Davenport and the surrounding Orlando area.
To learn more about how to find and purchase a rental property that delivers consistent bookings and revenue for you and your family, contact us today for a free consultation at 407-705-2616.