The Benefits of Owning a Vacation Rental Property
Now is the perfect time to buy a vacation rental property. The winter season has just begun. By the time January and February roll around, you and your family will be ready for a vacation away from the cold. Even if you live in a southern region of the country like Texas, nighttime temperatures can drop to uncomfortable levels during the winter months. If you’ve always wanted to get into real estate investing, buying a vacation rental property is a great way to get your feet wet; especially if it involves getting them wet on a sandy beach in a warm climate! Here are all the benefits of buying and owning a vacation rental property.
Free Vacation Accommodation
As you know, accommodation is typically the most expensive part of going on vacation. You can get cheap flights, use airline miles and buy your food on vacation at grocery stores instead of restaurants. But you can’t escape the high costs of accommodation. Whether you’re staying at a hotel, AirBnB or a bona fide vacation rental, you’ll pay dearly for those two precious weeks. But when you own your own vacation rental property, you’ll never have to pay the high prices for accommodation again. Since you own it, there’s no cleaning fee, no taxes, no surcharges and no weekly rental fee to pay.
Another one of the big hassles of going on vacation that people don’t talk about is all the baggage you have to lug around. When you go on vacation, you usually want to bring your “fun” gear. That includes swimsuits, wetsuits, snorkel, fins, surfboard, and so on. Even if you prefer visiting a cold climate on vacation, you’ll want to bring heavy clothing, a snowboard, snowmobile gear, etc. All those things take up a lot of room. When you own your own vacation rental, you can store all your gear in the rental. It will all be there waiting for you when you arrive. No extra baggage needed.
No Equipment Rental Fees
When you go on vacation, you also end up paying a lot to rent equipment. Maybe you visit a beach in the Caribbean and you want to go standup paddle boarding or you visit a lake and your family wants to go kayaking. All those rentals add up. Sometimes the costs can be so high that the family ends up “voting” on whether or not it’s worth it. Have you ever asked your family, “How badly do you want to do this, because it’s a lot of money to rent the equipment?” You shouldn’t have to make compromises like this when you go on vacation. You work hard all year long. You deserve to be able to do activities with your family that will make lasting memories. As a vacation rental property owner, you don’t need to waste money renting equipment. You can keep your kayak, pool toys, surfboards, blowup lake rafts and other “toys” on hand at your property. Rental equipment is often in poor condition and not well cared for, since so many others have already used it. It will make sense to invest in nice equipment that you can own, since you and your family will be able to enjoy it for years to come.
Year Long Use
Most people find that getting accommodation in top vacation spots during high season can be challenging. The best accommodations are taken quickly, especially in the summer months when kids are out of school. Of course, summer might not be the only time you and your family want to get away. When you own your own vacation rental property, you have year long access to it. Even if you only have a fractional ownership in a vacation rental property, you can still have use of your property almost any weeks you choose out of the year. If you have full ownership of a vacation rental property you can pick and choose when you go to stay. Year long use on a vacation rental property means you can scoot out of town on very little notice and enjoy long weekends away with your family.
If your income is tied to how many hours you work, you’re going to love buying and owning a vacation rental property. Passive income is income you receive without doing any extra work for it. When you own a vacation rental property, you can get rental income from that property even when you aren’t working. You can rent out your vacation property at those high vacation rental prices you’ve seen. So instead of paying high prices for vacation rentals, you can be the one receiving the high rental prices. That money is extra income for you to do whatever you want. You can put the money aside to buy a second rental property, fund your child’s higher education costs or save it to invest in a private money lending opportunity. The point is, it doesn’t cost you time or effort to get that passive income. It’s yours forever to do with as you please.
Of course, there are many tax benefits to owning a vacation rental property, as well. As a vacation property owner, you can deduct nearly all the costs associated with maintaining your property. If you travel to your property to inspect it, you can deduct those costs. You can’t deduct costs associated with enjoying your vacation rental property, but you can add on vacation time to an inspection visit. Your accountant will be able to assist you with the details concerning your tax benefits for owning a vacation rental property.
Don’t put off buying and owning a vacation rental property any longer. The sooner you buy, the sooner you can begin reaping all these benefits. If you’d like any additional information about buying and owning vacation rental properties or fractional share ownership of vacation rentals, please don’t hesitate to contact us!