Ready To Rent?

If you own a second home or are in the market to buy one, what do you do when you’re not there? Often, second homes sit empty for most of the year but are still costly to operate. If you’d like to bring in some income to supplement the mortgage and maintenance fees but still have the flexibility to visit whenever you like, consider the value in turning your home into a vacation rental.  

LEGAL AND FINANCIAL. Before you make grand plans for your vacation rental, look into local community, city, and county laws. Your home may or may not be zoned for renting. And if you own a condo unit, you’ll want to check with the homeowners’ association as well. Once you’re in the clear, acquire the proper permits and insurance, and consider informing your neighbors of your plans. Be sure to contact your lawyer and accountant in this start-up stage to ensure nothing slips through the cracks. You will need to keep track of this new income for tax purposes and you’ll likely need to charge renters city and state taxes (just like hotels do). Compare other vacation rentals in the area and then set rates that are fair and appropriate considering your overhead. You’ll also want to set up a legal rental agreement that addresses your policies.

DECOR. Decorating a rental is similar to staging a home for sale: use neutral colors and patterns, eliminate the clutter, and make the best use of the space with inviting furniture arrangements. Of course, you’ll also want to consider the regional decor; guests want to feel like they’re getting an authentic experience. For example, if you have an oceanfront home, you might add a few nautical elements; for a mountain cabin, pinecones, plaid, and plenty of battery-operated candles.  

Make sure that the paint on walls and cabinetry looks fresh and that any maintenance and safety issues have been tended to before you start decorating. Then, remove all personal photos, expensive artwork, and anything that you would regret needing to replace (accidents happen). If you’d like to keep some personal items in the house—clothing, toiletries, or special dishes—for use when you visit, consider storing them in a locked closet. Then, proceed to address each room. Beds should be comfortable and made with clean, high-quality linens. The kitchen should be stocked with dishware, pots and pans, and a coffeemaker and tea kettle.      

SUPPLIES AND MAINTENANCE. Find a reliable housekeeper or cleaning service, and set up a process for check-in and checkout to ensure that your home is always clean when renters arrive. Stock up on basic supplies (toilet paper, plunger, paper towels, dish soap, and laundry detergent) and store them in a readily accessible area.

FINISHING DETAILS. When you vacation, it’s always nice to have the comforts of home. Think about stocking the bathroom with miniature toiletries and a blow dryer. Other parts of the home should be easy to navigate. Create a list of instructions for using appliances, electronics (such as a Wi-Fi access code), and any other equipment. Set up an emergency contact sheet, a list of local attractions, and a folder with nearby restaurant menus.

MARKETING. Once your home is prepped and ready to rent, it’s time to advertise. High-quality photographs are essential for attracting renters, so consider hiring a professional photographer if you’re not confident in your own skills. Unless you do any major renovations, you’ll be able to use the photos for years of marketing.  Before listing your home on a vacation-rental site—such as VRBO from HomeAway (vrbo.com), VacationRentals.com, or FlipKey from Trip Advisor (flipkey.com)—be sure to do your homework to understand the site’s strengths as well as any potential drawbacks. To reach the most people and get the best results, post your rental to three to five sites (just make sure that you coordinate scheduling). You might also choose to invest in an independent website for the property so potential renters can reach you directly