What do you guys think of vacation homes zoned for short term rental as an investment. My concerns are long-distance management and whether the income will cover my costs.
Here are some thoughts by one who has slept in such places, but not owned.
Go to your favorite year round resort area (ski and climb beside the beach) and check with rental companies. They manage for you. Talk to realtors who have such units to sell. get yourself an education while you are there. Talk to absentee landlords to see what their experience is.
You might post this question in the landlording forum.
I was looking at some rental property in Park City.... management company usually charge 40-50% of gross rent collected. They take care everything except repairs. I didn't buy because there is no cash flow. Hope this helps.
I have a rather strong opinion on vacation rentals as investments. I think many buy them with the idea that they can reduce vacation expenses by having a place to stay. I had a house at Lake Tahoe that I rented to people who were working at the resorts-- not vacationers. I did not want to be in the hotel business.
The turnover was very high and my property was on the market for almost 4 years. While I am sure that in this market that property is worth alot now, however, typically they are the last to go up in value and the first to drop.
The previous owners managed the property from afar as vacation rentals and although they seemed well organized, I acquired the property from them in lieu of foreclosure.
Here are some thoughts by one who has slept in such places, but not owned.
Go to your favorite year round resort area (ski and climb beside the beach) and check with rental companies. They manage for you. Talk to realtors who have such units to sell. get yourself an education while you are there. Talk to absentee landlords to see what their experience is.
You might post this question in the landlording forum.
Dan
I would also suggest you talk to other "absentee" owners about their experiences with the respective Management company...ask for referrals!
I was looking at some rental property in Park City.... management company usually charge 40-50% of gross rent collected. They take care everything except repairs. I didn't buy because there is no cash flow. Hope this helps.
I have a rather strong opinion on vacation rentals as investments. I think many buy them with the idea that they can reduce vacation expenses by having a place to stay. I had a house at Lake Tahoe that I rented to people who were working at the resorts-- not vacationers. I did not want to be in the hotel business.
The turnover was very high and my property was on the market for almost 4 years. While I am sure that in this market that property is worth alot now, however, typically they are the last to go up in value and the first to drop.
The previous owners managed the property from afar as vacation rentals and although they seemed well organized, I acquired the property from them in lieu of foreclosure.
[ Edited by edmeyer on Date 09/28/2004 ]