Finding your Perfect Luxury Rental
Want to know the keys to finding your perfect luxury rental? I’m not talking about you being the renter, I’m talking about you buying a place that you will rent, and being the owner that rents the property. If you’re in the risky business of buying real estate, and finding a way to make money off your luxury homes, then this post is for you.
There’s a few criteria that I think you should consider before buying something that you will (hopefully) be renting more than six months per year. Your list could change, but this is a pretty good summary of what you need to consider:
- This is the most important by far of all the variables when it comes to buying a luxury property. You clearly don’t want to buy a luxury home in some run down city in Ohio (sorry, Cleveland, but you’re not going to make the list). Popular vacation spots are what you should be looking for, and you need to do some research. We suggest finding people who have gone through the process, contacting them, and asking them question after question after question. Most vacation rentals are going to cost you a pretty penny, so doing your homework on the city or town you are considering buying in is objective number one.
- How many months per year will you be able to rent out your property? If you’re renting in the warm weather states like Florida or California, you probably are going to be able to rent more than you would say in New York. There are a number of factors that will influence the state you choose to rent in. For example, do you like the state, do you want to travel there if nobody is renting your property? If you had to sell your home and move there in a pinch, would you do it? Places like Colorado could be a great place to rent in because of the ski season, and the rather warm weather the rest of the year. Again, consult someone who has bought and rented a property in your desired state, and ask questions.
- What’s the going rate per bedroom, or per bed in your locations? You can normally find this information by doing some research on VRBO.com or Airbnb.com, so look into those sites and see what the supply and demand is looking like. You could try to pose as a customer, and ask questions through these sites to get the feel for how busy it is in these locations. Pretty easy to have conversations with some people through these very popular websites, so give it a shot.
- Lastly, will you be using a property manager? If you’re looking to buy a property in Fort Lauderdale, we know of a pretty good property manager you could contact:).
There will be a few more things you should think about, but that will get your wheels spinning a bit.