August 28, 2018

The 5 Top Tips For Making A Vacation Rental Investment In Lake Tahoe

August 28, 2018

The 5 Top Tips For Making A Vacation Rental Investment In Lake Tahoe

Things  to consider before making a vacation rental investment in Lake Tahoe

Every year, roughly 50 million people take a ski vacation. More and more of these folks are opting to stay at a private vacation rental instead of a typical ski resort or a conventional hotel. If you're looking for a great investment in ski country, now is the perfect time to iron out the details so you can reap the financial rewards of the full ski season, which begins in October. Here are some things to consider before making the commitment: 

1. Set Your Priorities

Think about why you want to purchase a vacation rental home in Lake Tahoe. Are you re-locating to the area and plan to live in the home for a majority of the time with the occasional rental? Do you and your family and friends love to ski, and are you looking for someplace you can personally use for a few months out of the year? Or are you trying to make money from only renting out your new home? 

Understanding your own priorities is important before beginning to look for a vacation home or hiring a realtor. There is a difference between a home that is perfect for you to live in and one that would be a popular vacation rental in the area. 

2. Choose a Knowledgeable Realtor 

If you're looking for a vacation rental home in Lake Tahoe, it's important to find a real estate agent who has been living and working in the area for years. Realtors who are truly invested in their own communities will have a great deal of knowledge that is invaluable to helping you make the best investment decision. 

Fortunately, with many online review systems available today, you can quickly read about the experiences of others who have used a particular real estate agent. Online reviews can help you not only see if others are satisfied with a particular real estate outcome but also how a particular provider interacts and deals with customers. 

It is worth the investment to talk with several agents and see which one seems to be the best fit before embarking on a relationship. 

3. Look at the Past as Well as Future Projections 

The vacation rental market is changing at a rapid rate, and it's important to understand how much money you can expect to earn before making a big investment in a rental property. 

It's easy to look at the vacation rental industry data for a particular area or neighborhood, and companies who specialize in Airbnb management in Lake Tahoe can provide projections for the future. Location, timing, real estate values and the overall economy can impact how much a ski vacation rental is expected to generate in any particular season. 

4. Understand What Potential Customers are Seeking 

Gone are the days of choosing a vacation rental solely because it's less expensive than a hotel or provides a full kitchen for meal preparation. The expectations, especially within lucrative markets like ski areas, has changed significantly. Today, vacation goers are not just seeking lodging, they want a unique experience that reaches to all areas of their vacation, including where they stay. 

If you're looking to invest in a vacation rental property, you'll want to find a unique home with lots of charm that will be appealing to potential customers. Having vacation-type amenities such as an outdoor hot tub or a beautiful ski-resort-worthy fireplace is always appealing. 

You'll want to ensure that the entire rental is conducive to popular vacation group sizes. For instance, if you have a small rental, be sure you can decorate and market it to couples looking for a romantic getaway. This may include ensuring that it has a large master bedroom with a jacuzzi tub. If you're investing in a larger home for bigger groups, be sure that your common areas can seat and accommodate as many people as you can sleep there. 

5. Do Your Math 

Once you understand what your priorities are in terms of why you want a vacation rental in the first place, start looking at available properties. Before you make the final decision on one and sign the closing paperwork, be sure you have included all your costs. 

Purchase costs include the final price of the property, real estate and closing fees, and any investments you plan to make in terms of repairs and upgrades. In addition, you'll want to understand ownership costs, which include home and umbrella insurance, property taxes, typical utility costs, and maintenance costs such as snow removal. Some homes are located in areas where you might incur home association fees, and if you plan on using a company to help you with Airbnb management in Lake Tahoe (like us!), you'll want to consider management fees as well.

Tagged: vacation rental investment, lake tahoe