How To Find Vacation Rental Properties

Perform A Vacation Rental Property Investment Analysis

At this point, you are presented with a choice to invest in a number of vacation rental properties for sale. You now need to analyze each property to find the one with the highest potential for profits. In other words, you need to find out how much money each property will make with the Airbnb rental strategy. Doing this analysis manually on each property is time-consuming and painstaking, to say the least. The most effective way to do it is to use a rental property calculator, one of the best tools to find vacation rental investments.

Mashvisorâs rental property calculator does a complete investment analysis on all the income properties for sale and provides real estate investors with a comprehensive report containing all the important metrics they need to evaluate the profitability of each property. These metrics are pre-calculated based on vacation rental comps and data from the local real estate market. They include:

• Rental Expenses
• Cash on Cash Return
• Occupancy Rate

The calculator also provides a breakdown of the rental expenses. You can adjust any number as you see fit, and the calculator will redo the calculations to provide more accurate projections. You can then easily compare the different properties based on all the metrics above and finally decide which one is the most lucrative for vacation rental investment.

Mashvisors Rental Property Calculator

Related: The Best Vacation Rental Income Calculator for 2020

Property Taxes & Types

As short-term and vacation rental becomes a more popular way to supplement income, tax legislation continues to define terms and restrictions.

• A minimal-rent residence refers to a personal residence that is rented out for a period of less than 14 days per year, any revenue generated is not subject to income tax. Expenses, however, are not eligible for a business write off.
• Rental property refers to any property that is designated a business for tax purposes and rented out for more than 14 days per year. Further, the property owner may not use the property for personal purposes for 14 days or more per year. Any revenue is subject to income tax, but the property owner may write off all relevant business expenses.
• Medium- and heavy-rent residences refer to personal residences that are designated based on a ratio of personal-to-rental use. A medium-rent residence is a personal residence where personal days are either in excess of 14 days or are greater than 10% of the total number of rental days. Heavy-rent refers to a personal residence where personal days are both in excess of 14 days and less than or equal to 10% of the total number of rental days.

How Can I See Monthly Rental Rates On Trippingcom

There are a few simple ways to find a great monthly rate on a vacation rental. Below are the four simple and easy steps to ensure you get the best deal on your rental.

1. Be sure to enter your travel dates when prompted to do so on the search bar.

Some of our partner sites will automatically readjust rental rates based on duration of the stay. This method does not guarantee that total rental price calculated for your stay represents a reduced monthly rate. However, inputting your travel dates will narrow down your search results to properties that are available for the entire duration of your trip.

2. View the rental listing on Tripping.com before viewing the rental listing on one of our partner sites.

Once you are on the search results page, access the rate filter by clicking on the green “Filter” drop-down menu that appears at the top-left of the page. The “Monthly Rate” filter is conveniently located at the upper right-most position under “Rate.”

Please note that the calculated price is not representative of special monthly rates the owner might have set for certain dates and seasons. You must check for special monthly rental prices directly on our partners’ sites. You can do this by simply clicking on your preferred rental on Tripping.com, and you will be automatically redirected to our partner’s page.

3. Read through the property description.

4. Contact the owner/manager.

This post was written by Kelsey Page, Tripping Blogger

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Vacation Rental Brands & Management Companies

Sometimes you dont want to gamble on a vacation rental – it could be great, but it could be a disaster. Vacation rental brands and management companies provide consistency and peace of mind for travelers who want a high-quality experience.

Vacation Rental Property Management Contracts And Fees

How much are vacation rental property management fees?

Depending on the location and breadth of services, vacation rental property management fees can range from 12% to 50% of your rental income.

The biggest trap is settling for a vacation rental manager who promises higher short-term returns for a lower management fee. While lower fees may feel like a better deal, you usually end up paying much more in fees for additional services, and a great peak season doesnt mean much if your home is empty for the rest of the year.

Contracts are a pain point for many vacation home owners because of the above scenario. A year-long contract with a manager who can only book 4 months of the year is a net negative, plus the operational costs and security concerns of bringing outside vendors into your home to clean the carpets or fix the A/C.

When looking at your budget, consider the long-term benefits of hiring a full-service vacation rental manager who can do it all and provide hotel-quality services that guests expect. If you plan on selling your vacation rental, a full booking calendar will help justify a higher asking price.

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Why Stay In A Vacation Rental

Vacation rentals can offer more space, privacy, and flexibility compared to hotel rooms. Depending on the property, youll have access to amenities like hot tubs, gourmet kitchens, washer/dryers, free onsite parking, private pools, and so many more.

Vacation rentals are available in a wide range of locations so you can choose where you want to stay, like the center of the city or a local neighborhood with great nightlife. Plus, if youre traveling with your family or a large group, having multiple bedrooms and bathrooms means theres enough space so everyone can stay together under one roof.

Last but not least, at rates of up to 80% off traditional hotel rooms, vacation rentals are often the most affordable, cost effective option. So if youd like to feel home away from home on your next trip, in a place where you can cook, lounge and entertain? Stay in a vacation rental.

For More Than 7 Million Options: Airbnb

Well-designed and intuitive, Airbnb is popular for a reason. For users looking to browse the greatest quantity of options in any given destination, with dozens of filters availablefrom pet-friendly stays to houses with poolsAirbnb cant be beat. We find the map feature exceptionally helpful when researching. It allows you to single out the neighborhood or part of town that you’re interested in staying in or freely explore if you’re not tied to a destination. We also love the distinctions for quality: Superhosts, which marks hosts holding a 4.8-or-higher rating and a one-percent-or-lower cancellation rate Airbnb Plus, which offers added peace of mind, since the properties are vetted in-person against a 100-point checklist and Airbnb Luxe, a selection of high-end stays that have luxury amenities and a trip planner to act as a concierge ahead of your stay.

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Start The Vacation Rental Property Search

After locating the best neighborhood for vacation rental investment, itâs time to move to the most exciting part of investing in vacation rentals: the property search. There could be dozens of rental properties listed for sale in a neighborhood but in order to succeed in the vacation rental industry, you need to narrow them down to those that fit your budget and investment goals.

You can hire a real estate agent to help you find vacation rental properties that meet your requirements. But, a quicker and easier way is to use an online rental property finder. This is a tool that automatically finds investment properties for sale with a high return on investment based on the criteria you set. Mashvisorâs rental property finder allows you to customize your search criteria using a number of filters, including:

• Location
• Number of Bathrooms

Mashvisors Rental Property Finder

Once you customize your investment property search criteria, the tool scans the local housing market to find the best performing rental properties that match.

Related: How to Use Mashvisors Investment Property Deal Finder

Vacation Rental Property Restrictions

In some cities, negative feedback from local residents and competing hospitality businesses have resulted in bans or over regulation of vacation rental properties, though these restrictions are not always heavily enforced.

Some major cities that have imposed restrictions on short-term and vacation rentals include New York City, Paris and Barcelona.

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Calculate Income & Expenses

Once you identify a potential property, you need to make sure you can afford it, even when its vacant. Look at what vacation rentals in the area go for and compare this to your monthly financing and operational costs. If you can get an idea of occupancy rates for a vacation rental in that location, it will help you calculate income. Local property managers and real estate agents can help you find this information.

Example: If a propertys monthly operational expenses are $250, mortgage, taxes, and insurance are $1,750, and the nightly rental rate is $100, with an occupancy rate of 80%, you can calculate your potential monthly profit in the following way:

Potential monthly income: ] = $400

In this example, the property is cash positive if it was rented a full 30 days in most months.

However, you reduce your occupancy rates and income if you live in the rental part-time. The occupancy rates and amount of collected rent also decline during off-peak seasons, so youll need to test several scenarios to make sure the property is bringing in the income you desire.

Lets cover some of the expenses you may encounter so you can calculate the cost.

Choose The Right Property Manager For Your Vacation Rental Investment

When the sale is complete and youre ready to start renting, find a vacation rental manager who will give your home top treatment.

Here are some questions to consider, whether youre switching management companies or hiring one for the first time:

• Where will they list your home online, and what marketing services do they provide?
• Will they price your home competitively?
• Does the management fee cover everything you need to rent, like marketing, booking, customer support, guest screening, and housekeeping?
• What sorts of limits are in place around using your home yourself?
• Can you cancel your service at any time, or are you locked into a contract?

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Our Guide To Vacation Rental Websites: Airbnb Vrbo And More

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While we love a good hotel, vacation rentals have a lot of appeal. For families with kids, vacation homes offer the much-needed space and privacy to spread out and get a little messy for groups of friends, they offer social, communal spaces and can cut down on costs and for curious travelers, they can give a more genuine, local feel in any given city or town. As far as rental booking services go, Airbnb dominatesbut its far from your only option. Depending on your specific needs, there may be a service better suited for your upcoming trip. Below, weve rounded up the best vacation rental websites to consider when you book that next vacationand a few of our favorite homes from each.

Why Do People Stay In Vacation Rental Properties

While some travelers still prefer hotels, vacation rentals are fact becoming a popular alternative to that familiar option. Vacation rentals generally offer more competitive rates than hotels as well as a more intimate, private setting.

Many vacation rentals are equipped with kitchens, giving guests the opportunity to save money during their travels by cooking in-house rather than dining out for each meal.

Additionally, todays travelers are increasingly seeking to immerse themselves in the cultures of the cities they visit, a pursuit made much easier when staying in a unique, local home instead of a standard hotel room.

While some see the vacation rental option as risky, worried the properties may not be as they were described online, reviews from previous guests help travelers make their booking decisions.

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Which Is The Best Vacation Rental Booking Site

Theres no one agency or platform that shines above others for families, but we can provide some conclusions based on our vacation rental site reviews and years of using these booking platforms.

• If youre looking for budget alternatives to conventional hotels, start with one of the giant booking platformsthats where youll find the bulk of the low-priced options. Go to a regional specialist platform if you want more options.
• For rentals in the U.S., do a local search in addition to checking the larger vacation rental booking platforms.
• Cast a wide net. Check with as many different sources as you have time and patience for. And keep in mind that many rentals will list with more than one booking platform, but a few stick to one or two. Prices are almost always the same.
• Avoid booking vacation rentals through Craigslist or eBay. Although both list vacation rentals, they provide almost no consumer protections.

Straight From Our Guests

VILLA ENCANTADA

“We rented this property in November and had an amazing experience. The ground staff were amazing and the housekeeper was fantastic. They did very well communicating with us as they spoke mostly Spanish. The Property Management team was fantastic to deal with. The Mexico team greeted us and helped us with dinner reservations, and excursions. Would highly recommend this property and rental management company to deal with. We plan to rent each year from them as it was a great experience and very safe.

-BRAD R.

VILLA TURQUESA

“Villa Turquesa es una casa hermosa tiene todo lo que se necesita para pasar unas vacaciones relajadas y en familia, la casa esta muy limpia. La agencia que administra la casa siempre estuvo al pendiente de todo y dando seguimiento puntual. Gracias!”

– Alejandro N.

VILLA MAYA

“What a fantastic company! From our first contact with Kerri Wrixon to the awesome care and attention from the guest services manager we were blown away by the superb customer service and attention to detail that My Huatulco Vacation provides. The pool keeper, cleaner, on-site security and property managers also deserve praise as they did their jobs with smiles and the same high quality service. We loved our stay and look forward to a return trip! Thanks so much to all of you at My Huatulco Vacation!”

– Cathy K.

CELESTE 603

– Juan Jose R.

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Why You Should Hire The Right Vacation Rental Manager Over Any Vacation Rental Manager

When you look at the time, energy, and money involved in managing a vacation rentalits easy to see how quickly it can turn into a second job. An owner who manages their vacation rental themselves spends on average 30 hours per month on marketing, cleaning, property maintenance and upkeep, handling reservations, and restocking toiletries.

Full-service management companies, like Vacasa, will handle everything while earning you more revenue. This includes the marketing and rental logistics like promoting your home, pricing it accurately, confirming reservations, regularly inspecting the propertys condition, and providing professional, local 24/7 guest service.

Dont settle for less than the best for your home and your peace of mind. The right vacation rental manager is part marketing genius, part data scientist, and part concierge. Theyre also a good neighbor, with risk-screening procedures in place to help keep your property, your community, and your guests safe.

How Do People Find Vacation Rental Properties

People find short-term and vacation rental properties the same way they find hotels, through OTAs . Sites like Booking.com and TripAdvisor offer an entire category of vacation rental homes and platforms like Airbnb cater exclusively to this type of accommodation.

Many professional vacation rental property management companies also have direct booking websites through which guests can reserve their properties. A simple google search should be sufficient to help travelers find vacation homes in the destination of their choosing.

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