The Condo Mania Team
Using your Condo as a Vacation Rental
What is the #1 question we get from second home buyers? “Can you find me a vacation condo to rent out when I’m not using it?”
There are plenty of condo owners that are successful at renting out their condos
Here are some things to consider when determining if a vacation rental is for you:
1) Vacation renters (the kind who would be renting a furnished condo) want to rent your property during the same months as you probably want to be here! The prime months are January through March. Other fairly good months for rentals are December and April. The rest of the year, you’ll have to take a much lower rental price and expect to experience a high vacancy rate for these months. The more you use the property during the busy season, the less you will make from your rental income.
2) Don’t forget to factor in extra costs. Damage, insurance, property management fees, utility costs, move-out service and wear-and-tear costs need to factor into your decision to rent a property. Property management costs run 10% - 50% of the rental income, depending upon who you use and how much they do. Utilities can cost several hundred dollars in the summer months, depending upon the size of the property.
3) Many properties don’t allow weekly or monthly rentals. Most condo communities have 3-month minimum rental periods. If you can be flexible around your renter’s usage period, a three month rental will assure at least three months of income, but on the downside, those three months will probably be during the winter. We can help you determine which communities might be suitable for shorter term rentals. One option is to purchase a Condo-hotel, which has an onsite property management company that rents out your condo for your on a nightly basis. Here is a list of Condotels in Phoenix.
4) Most property managers will handle vacation rentals only on luxury condos that can fetch top dollar in the winter. So if you are looking to buy a vacation rental under $200,000, you may have to handle your own property management. A less expensive alternative is to handle the marketing and rental contracts yourself (usually via internet rental websites) and hire a local "home manager" to handle any move-in and move-out tasks, such as doing the walk through, hiring the cleaning service, and handing out keys.
We help our clients find the right vacation property that may work as a rental as well. Although we don't handle rentals, we do have access to some property management options for you. Contact us if you are looking for condo specialists to help you find the right place at the right price.
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Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.
The Fair Housing Act prohibits discrimination in housing based on color, race, religion, national origin, sex, familial status, or disability.
Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.
Last Updated: 2022-07-05 06:55:22