Can one make a full time income on Vacation rentals? Newbie

[Chris L.]

Hi all,

I have been a landlord for sometime and am thinking of getting out of this business and am interested in short term vacation rentals. Fort those that are doing this as their main income, how did you get started?  What type of return do you make on investment? Are there certain rental locations you find most lucrative? Do you have to hire a rental manager and what % do you pay them?  Do you buy houses, condo's or other?  What do you have to look out for or be concerned about when purchasing a property to use as a vacation rental? With Air B&B, don't you get hit with a lot of charges and do you still make a  good profit?  Any advice for someone just getting into this area?  Thank you for your input. 

[Michael Greenberg]

Hi @Chris L.

You've got a lot of "loaded" questions.  Personally I got started by accident.  Purchased a second home and took a chance trying to rent it occasionally as a VR.  It has now turned into a lucrative business.  I think you want to start this process by some financial proforma work.  I use a tool  at airdna.co (not .com).  It's a really great tool to estimate the rents you're likely to receive by zip code.  Just create a free account to capture some initial data, or you can always buy their data (don't buy their reports, just buy their raw data).  Starting out I would not hire a rental manager, just locate a really good cleaning service and handyman that can help out in emergencies.  If you're buying in a HOA controlled community make sure to check the CC&R's.  Also check with the local municipalities regarding any regulations.  As for marketing websites like Airbnb, VRBO, etc... the fees you pay are not excessive, but you'll definitely want to do your research.  

Best of luck!

Mike