Investing in property is a popular choice for people who want long-term investments. If you’re thinking about the best ways to put some of your money into the property market, you’ve probably considered the idea of vacation properties. Houses and apartments can both be rented out to tourists, business travelers, and other visitors to almost any area. If you choose the right place to buy property, you could make more from short lets on a vacation property than you would from a residential home. Building up a portfolio of vacation homes could be the best strategy to take if you’re hoping to be successful with property investment.
Shutterstock Photos – By Antonio Guillem
Consider Your Strategy
Before you get started, you’re going to have to think about the best way to approach your vacation property investment. There are lots of choices to make if you want to make the best decisions. Firstly, you need to make sure it’s the right move for you. It could be time-consuming to own and manage these properties. You also need to think about the best place to buy your property. In your home country, perhaps close to where you live, or abroad where you could get cheaper property? Do you want to invest in apartments, houses/villas, or a mixture of both? You need a plan before you get started.
Find an Easy First Property
If you’re just starting to dip your toe into vacation rental investment, you probably want to start with something that’s not too complicated. Perhaps you already own investment properties, but this could be a new area for you. You might want to begin with property close to home, or perhaps somewhere you visit frequently and therefore know well. Your property should be somewhere you know gets plenty of visitors so you can guarantee guests.
Outsource Your Property Management
Looking after an investment property can be tough, and it’s sometimes more difficult with vacation rentals. If you don’t live nearby, it makes handovers and taking care of any issues more complicated. You might want to look for Airbnb management services or something similar, so you can ensure everything is taken care of. The right service can sort out maintenance issues, take care of guest vetting, and even assist with interior design. As you build your property portfolio, the need for a management service might become more apparent.
Start Building Your Portfolio
Once you have started managing one vacation rental, you can start thinking about investing in more. Using your experience with the first property, you can refine your strategy and decide the best approach to take. You might want to try to diversify your portfolio by investing in different regions or perhaps in different countries. Consider different types of property that are suitable for various types of traveler too. Some might be perfect for families, while others work for business travelers. You need to consider the market and provider for its demands.
Investing in vacation rental property could be your calling. Even if you don’t build a whole portfolio, any property portfolio can benefit from one or two vacation properties.
