Lake house

[Jason Blasenak]

Does anyone have experience with buying vacation rentals? Any advice on what to avoid or recommendations on what to look for when purchasing property?

Jason

[Bill Gulley]

A vacation home can be rented out, check locally as to zoning issues that can determine if you can rent daily or weekly.

The pitfall is buying vacation properties from the corporate owner who retains management/rental rights. Also when there are corporate owned properties on site and individually owned properties, owners assume they will rent their unit as they rent out all others, that assumption means the corporate is going to compete with itself, think about it.

I suggest you have a manager who doesn't own competition units, that will add you on as the inventory, there will be a rent first policy and you may get just an overflow. You need to check out the manager and talk to other owners about their units.

Management will usually be different, not 10% as an annual lease, I've seen 30% and more of rents, depends on the area and type of rentals.

Check with an attorney about rental issues with less than monthly rent agreements, you may be considered an Inn Keeper and not a landlord, different laws apply.

Usually these units are furnished, security can be an issue, someone needs to walk through at check out and ensure the unit is locked up.

Insurance will be different, costs more and the location will determine much of the cost. I suggest you stay in an area where other owners can see your property or be seen from the road, those hidden in the woods can be a problem.

This is more of a motel operation than just being a landlord, if you have a high turn-over, like weekend rentals.

I have a lake home on the water front and I don't rent it, rarely go there now but renting it would be a real PITA, IMO. :)