What is Unique About Investing in Vacation Rentals

There are many ways to invest in real estate. Some people like self-storage as there are low costs and low maintenance involved in daily operations. Some people like Multi-Family due to its predictability in income.

All these different strategies are sound and you can be successful at them, no question.

However, I find vacation rentals to be exciting in a way that no other type of investment can ever do for the following 4 reasons.

1. Enjoy your Investment. 
2. You have the ability to use the property at your convenience. I believe this is the biggest reason people choose to invest in short-term rentals or STRs. The ability to visit and enjoy your own cash-flowing rental is something that is unique to this business model.

1. ROI. 
2. Ability to differentiate from the competition. We’ll get more into this later but there are so many ways to allow your imagination run wild when setting up your vacation rental. It's not so much about how much space you have as how what kind of experience your can offer. Running a short-term rental is a time-intensive business, no question. However, the ROI is generally higher than traditional rentals. But here's the secret sauce. If you wisely set up your vacation rental, you can automate 95% of the day-to-day tasks without the need to be available 24/7 for your guests.

1. Volatility. 
2. Volatility can seem like a bad thing but let's look at the upside. When doing your due diligence prior to purchasing an Airbnb, you might calculate that you will make a certain ROI. However, if you are a Superhost and offer unique accommodations, you can outperform similar listings based on bed/bath count. Additionally, your ratings can allow you to charge more. 

1. Philanthropy. 
2. It's a great feeling to be able to provide a low-income family or someone going through a life event get some R&R at your property. You can’t have a deduction on your taxes based on the free rental though. Also, being the cause of great memories. When you have paying guests come back to you because they had a great experience, that is something to treasure.