Buying a vacation rental home as a real estate investment offers a lot of advantages.
When it is done well, the right vacation rental will result in a great return on investment and a steady income for many years to come. Here are a few of the reasons why investing in vacation rentals is such a smart move:
The Property Generates Rental Income
The main advantage of owning a vacation rental property is that it provides you with a steady income. You can rent the home out to guests, whether by the night or by the week.
If you choose a desirable property in a highly sought after tourist destination, you’ll be able to charge a very profitable nightly rate and make a great income from your property.
You Can Make More Money Than a Long Term Rental
In many situations, owners of short-term vacation rental properties will be able to charge more than they would for long-term rentals.
If you’re in a desirable location and running your vacation rental business well, you’ll have high occupancy rates. This will add up to a significant monthly income – much more than you could charge to rent the home monthly.
To maximize your revenue, invest in the small details that make the guest experience exceptional. Think of your rental as a luxury hotel suite. If you can provide the top-notch customer service and little extras that make guests rave about your property in their reviews, you’ll be able to justify charging top dollar.
It’s Easier Than Ever for Guests to Find Your Rental
Travelers have been staying in by-owner vacation rentals for many years, but in the last few years, the ease of finding a property has really improved.
These days there are many easy to use online platforms, such as Home Away, Airbnb, Booking.com, VRBO and others. The typical traveler will be able to search through vacation rentals in their desired destination quickly and easily. With high-quality photos and a robust system of reviews, it’s easier than ever for travelers to choose a place to stay.
You Can Use It Too
If you own a vacation rental property, you will also have the option of using it yourself as a second home or spending your own vacations there with your family.
For example, you could use the property yourself for a few weeks of the year, then rent it out during the most profitable tourist season. You can also offer the use of your vacation rental property to family and friends – it’s up to you! The flexibility that owning a vacation home offers is very advantageous.
Your Vacation Rental Property Will Appreciate
While your vacation rental property is making you money in rental income in the short term, it will also be slowly appreciating in value over time. This will happen as a result of natural real estate appreciation. The growth can also be accelerated if you buy a property in a somewhat lesser known vacation destination and it becomes more popular over time.
You can also improve the value of your vacation rental or B&B investment by doing renovations and improvements. A state-of-the-art renovation will not only improve the resale value but will also allow you to charge a higher nightly rate.
It Will Help You Diversify Your Investments
If you have a portfolio of other real estate investments, a short-term vacation rental will be a smart addition – because it involves a totally different market than other types of real estate.
Diversifying your investment portfolio is a smart idea because it helps to protect you from the volatility of the market. Also, this type of property allows you a lot of flexibility. If you decide you want to sell it or switch to renting it out long term – it’s up to you.
Hosting Guests Can Be a Lot of Fun
Your short-term vacation rental property is a business and you’ll need to treat it as such. However, hosting visitors can be a lot of fun too – and many hosts find themselves enjoying this aspect of the business.
You’ll get to meet travelers from all over the world, and you can take the time to show them the area and introduce them to the local culture. After all, if you embrace the role of hosting and have a genuine passion for it – you’ll get better reviews and your vacation rental will be more successfu
And You Don’t Have to Buy an Entire Property
Another advantage to investing in vacation rental properties is that you don’t have to buy an entire property if you don’t want to. Fractional ownership is an option that allows you to invest as much or as little as you like in a vacation home.
Partbnb works by allowing you to make an investment in a small part of a vacation property. You’ll receive an income every month based on your share in the property - and you can also book and stay at a discounted rate.
The team researches the available market to see which properties will get the best rental yield. We take care of all renovations, list the property on VRBO and Airbnb and run the listing with the help of a vacation rental management company.
Ready to Start Looking For Your Vacation Rental Investment?
If you are interested in investing in vacation rental real estate, Partbnb offers golden opportunities in a stunning, sun-soaked destination. We are preparing to launch our first property in the Bahamas, so join our email list to be notified as soon as we go live!