What To Consider Before Buying A Vacation Home
When you’re playing with starting a vacation rental business and the idea of buying a vacation home, it may feel like there a million different decisions to make. Because there are. But there’s no decision more important than the location of your rental. You could have the coolest themed rooms, the most beautiful pool, and a kitchen that would make any chef jealous, but if your home is located in a place that very few people want to be, it’ll be all for nothing.
Best places to buy rental property
The first thing you need to consider before buying a vacation home is the location. There are great places for vacation rentals, and there are not so great places. And while there will be a few areas where you may want to settle or compromise when it comes to your rental, the location should not be one of them.
Think About The Experience
Different families have different ideas about a dream vacation. Some want to escape to the sun and sun of Florida’s beaches, while others want to connect with nature in a cabin in the woods. Some families want to feel like a tourist while others find joy in experiencing new places like the locals do. When picking a location for your rental, think about places that families like to visit, and ensure you look for property that makes getting to and from the major attractions easy and convenient.
And while the guest experience is critical in deciding where to buy a vacation home, your personal experience should be taken into consideration too. Chances are, you’ll use your rental from time to time, so you want it to be in a place that you enjoy visiting, and you look forward to visiting. Before you decide on a geographical location, sit down and plan out the experience you want to offer your guest. What feelings do you want your guests to feel when they stay at your home? Luxury? Tropical? Cozy? Knowing the kind of experience you want to offer to your guests will help you narrow down the perfect location.
Best place to buy a vacation home are often in the south
Hot summers, gorgeous beaches, sparkling pools, and popular tourist attractions bring millions of tourists to the south every year. From theme parks and beaches in Florida to the music scene in Nashville and Memphis, the south offers some of the best places to buy vacation rental property. The area offers gorgeous weather and plenty of things to do for people of all ages. The southern region has proven year after year as being one of the best places to invest in property. In a report done by Rented, 15 of the cities on its list of 25 best places to buy a vacation rental are located in the southern region of the US.
Florida is one of the top vacation home destinations, mainly because it’s such a popular winter destination and it has an abundance of affordable real estate. Local regulations also are more laid back when it comes to vacation rentals in the Sunshine State, making it easier to run a successful vacation rental. Florida is also very versatile when it comes to vacation home locations. There are single-family homes in suburbs just minutes from the theme parks, high rise condos on the beach, bungalows in the Keys and even cabins in some of the state’s local parks.
Texas and Tennessee also made a name for themselves on the list of best places to buy a rental property, as it’s beautiful landscapes, popular for shopping, and dining destinations, and famous attractions like the Texas Rodeo and Graceland in Nashville are a magnet for tourists from all over.
If you find yourself looking at a map and feel overwhelmed about where to buy a rental property, narrowing your search to the south may help you find a location that works for you and your future guests.
Places to avoid if you’re thinking of buying a vacation rental property
Unfortunately for many vacation home buyers, not every vacation destination is an ideal vacation destination, and they learn this the hard way. While the slopes and mountains of Aspen are beautiful to look at and fun to explore, the area itself is an extremely low performing area for vacation rentals. And it may surprise you that New York City, Martha’s Vineyard and Honolulu, although bucket list places to visit for sure, are just not measuring up when it comes to successful vacation rentals. These cities may offer incredible vacation opportunities, but strict restrictions for short-term rentals make it difficult for owners to make money in these areas.
If you want to cater to wine lovers, instead of buying property in underachieving areas like Martha’s Vineyard, think about properties in Georgia or California where people can enjoy the area’s wineries but also experience everything else these popular tourist destinations have to offer. These areas are also much more short-term real estate friendly and allow owners more flexibility and freedom when it comes to running their vacation rental. Instead of a beach rental in Naples, think a little more north like Panama City Beach (Rented’s #1 best place to buy vacation property!) You can offer guests an unforgettable vacation experience and run a successful and profitable business at the same time. Doing a little research can help you find the right location for the type of vacation rental you’re looking for.
Buying a vacation home is an exciting adventure, and comes with a lot of factors to consider. But before you get carried away with trying to sort out of details of your vacation rental, take time to find the ideal location that will draw people in and give them the experience that they’ll never forget. Being intentional about the location of your vacation rental will set you up for success and create a vacation destination that will be profitable for you and memorable for your guests.