A vacation rental property is a great investment if the time is right. But before you decide for or against this move, you need to know the pros and cons of owning a vacation rental property. There are some things that are sure to excite you, and others that you may not be as gung-ho about. Of course, this is the case with most investments. If everything was fun and games and a great return guaranteed, everybody would be doing it.
The number one pro of owning a vacation rental property is that you will always have a place to visit when you want to get away. Forget about searching for a hotel, or staying with family. When you own a vacation rental property you can head for the same spot year in and year out.
Moving on, don?t forget about the potential money you can earn through a vacation rental property. When you are not occupying your property you can rent it out to others. This can help you pay the mortgage, and maybe even leave some money in your pocket.
Are you prepared to deal with the upkeep on a vacation rental property? This is something that many people never think about. Even if you purchase a vacation rental property that is in great condition you will be faced with repairs sooner or later. Are you willing to make these repairs on your own? If not, do you have the money to hire somebody? And remember, if you don?t live close to your vacation rental property you will need somebody in the area, a handyman perhaps, who can make house calls on a moment?s notice.
Even though it sounds good in theory, a vacation rental property will not always produce income. You have to rent out the property in order to make money. This may be easy sometimes, but on the same token there is no guarantee. For this reason, you should never rely solely on rental income to pay the mortgage.
Just like any investment, there are pros and cons of buying a vacation rental property.