Most people who own vacation homes only visit it once or twice a year. Owning a vacation home has always been a dream come true to you and it’s not something you just want to take for granted. To make sure that your investment is put to good use when you’re not around, you decide to rent it out. Vacation Rental Insurance Agency suggests that before you get a homeowners insurance for rental homes, consider the following guidelines first:
Determine Your Rental Income
To ensure that you get the most out of your new source of income, set rental rates that will provide you the maximum number of renters and a good cash flow. Keep in mind that your vacation home won’t be rented out as much if you set really high rental rates. Meanwhile, low rates will not make you enough money.
The owner should consider time, expenses and competitor’s rates when setting their rental rate. The time will determine how long you want your vacation home to be rented out and how much time you have to maintain the property. Expenses will identify the tax rules, the cost to rent the property, renovations, maintenance, utilities, insurance and cleaning fees. On the other hand, competitor’s rates will give you an idea on how much they offer.
Schedule a Home Inspection
Before each vacationer moves in, have a caretaker look after the house and ensure that professionals conduct a home inspection once in a while. He or she will be able to tell you if you need to fix any severe maintenance issues. This does not only defend you from possible legal issues, but it will also save you from getting numerous maintenance phone calls whenever the vacationers come in. Besides, receiving a negative feedback from a client will affect your new business.
Renting out your vacation home requires plenty of preparation, so ensure that you follow the guidelines to prevent negative feedback, unnecessary expenses, and a splitting headache.