What To Consider Before Investing In A Vacation Property

Spring is just around the corner and some of you may be seriously considering buying a  vacation property (cottage). If so, please read on: 


 

Buying a vacation property is the perfect way to start or grow your real estate portfolio  while also having the luxury of spending more time in a place you love. After all,  cottaging is a beloved North American pastime, and there’s nothing quite like enjoying  the great outdoors in one of its many lakes. And if you’re more of a city person, there’s  always a demand for vacation rentals in urban centers. 


 

But before you take the leap, it’s important to keep these four considerations in mind.  


 

1. Evaluating Your Vacation Property 

One of the first steps in your journey to buying a vacation rental property is to evaluate  its location. Is it situated in a high-demand area? This is a crucial factor that can  significantly impact your return on investment. Take the time to conduct thorough  research and determine the number of days per year you plan to rent it out.  


 

Additionally, consider how often you plan to use the property yourself: Are you  comfortable foregoing some summer long weekends at the cottage to charge a  premium price to guests?  

 

2. The Importance of Vacation Rental Management 

When renting out to guests, it is essential to decide who will handle the day-to-day  bookings. Will you manage this yourself, or will you hire a vacation rental property  manager to handle tasks such as cleaning between bookings and assisting guests in  accessing the property? After all, renting out a vacation home to guests is a time  commitment and you’ll need to be prepared accordingly.  


 

3. Capacity and Design 

Before you buy a vacation property, take the time to envision your ideal rental customer.  Are you targeting your property to be appealing to large groups of friends, families with young kids, or couples seeking a romantic getaway? Can the space accommodate  large gatherings or parties? These questions can help determine the type of property  you’re looking for.  


 

Next, evaluate the space to determine its maximum occupancy and how comfortably  guests can stay. Are there any potential renovations or redesigns to make the property  stand out and appeal to your target demographic? For example, if you’re buying a  three-bedroom cottage by the lake, you might want to consider buying two sets of bunk  beds to fit in more guests comfortably.  


 

Considering these factors will help you set appropriate rental rates and guide any  necessary decisions when marketing the property to guests. 


 

If you rent out your vacation home, you must determine how much a nightly, weekly, or  monthly rate will be. Ask yourself: 

 

• What’s the usual number of guests staying in vacation rentals around here?

• How much do similar places charge per night each season?  
 

• Will you charge more in busy times and less when it’s quieter? 
 

• Who else is renting out similar places nearby? 
 

• Are you open to spending money on extras like a hot tub or a new deck to attract  more guests and earn more cash?  


 

4. How to Market Your Vacation Rental 

In a saturated market, making your vacation rental stand out is essential. Consider  targeting specific events, like bachelorette or bachelor parties, and deck out your space  with fun themes and photo-ready spots - no need for extravagance, just memorable  touches like a unique choice of wallpaper as an accent wall can make a big difference.  


 

Whatever strategy you adopt, the importance of professional photography and engaging  descriptions cannot be overstated. These elements are key to ensuring that when  guests are searching for bookings, your property stands out, encouraging them to  choose it first and return in the future.  


 

When in doubt, talking to a trusted real estate agent can help you navigate buying  a vacation rental property. Give me a call today to get the process started! 


 

And if you are thinking of becoming a real estate investor yourself, or you are  already an investor and would like to leverage your current investment(s) into more properties, or you are looking to sell one or more of your investment  properties, give me a call at 905-683-7800 and I’ll be more than happy to answer  any and all of your questions. Ask for me, Brian Kondo.







 

Thanks For Reading Today’s BLOG!

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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