Vacation Property Management Tips for First-Time Investors
- March 5, 2020
Many people interested in running a vacation home business often ask the burning question: Do vacation rentals make money? The… Read More
Deciding whether to make a large investment is not something one should take lightly. This is especially true when it comes to real estate, or in this case investing in rental property.
Real estate is a fantastic choice for investment because you have more options than with other types of investments. If you invest in stocks or bonds, your success is completely dependent on factors outside of your control. At most, your options are to hold or sell. With real estate, however, you have unlimited options. Long-term real estate investments not only produce positive cash flow each month, but they also build equity.
But where should you invest? Read on to learn more.
Like anything, there are pros and cons to investing in rental property. It is important to weigh the Ontario vacation property benefits as well as drawbacks to maximize your profit potential.
Check out some of the advantages:
Owning vacation rental property in a good location can provide steady positive cash flow, especially during peak seasons. And the longer you hold onto a vacation rental, the higher the property value.
Owning vacation rental property allows you to have room to learn about real estate investing while also enjoying the perks of owning a vacation rental. By gradually learning how to make the most out of it when you invest in rental property, you can then expand your property business and potentially earn more.
Vacation rental property management can be challenging for beginner real estate investors. However, owning vacation rental property can be made easier with the help of vacation property rental management services that will take care of the property and take care of time-consuming duties.
Property expenses associated with investing in rental property lead the list of cons. This should not discourage you from investing in a vacation home, but there are a few expenses that you need to prepare for. Factoring in these expenses from the get-go can help you accurately estimate your net operating income and return on investment.
When you invest in rental property, there are two major risks you should bear in mind. First, there is the financial risk of the real estate market taking a dive and property values dropping as a result. Vacation homes are particularly sensitive to these economic downturns, which, in time, could leave the real estate investor financially vulnerable.
Owning vacation rental property comes with a number of expenses, some of which you may not have expected and are a result of high tenant turnover. Setting aside at least 10% of your monthly rental income will serve as an emergency fund that covers these unplanned costs. Bringing in a rental property management company is the key to navigating this problem.
When it comes to the best vacation rental investments near and around the Greater Toronto Area, many investors choose the Blue Mountains, Collingwood, and the surrounding cities. The reason being is that those cities are host to tourists and family holidays all year round: ski trips in the winter and cabin getaways in the summer.
By now you’re asking yourself if this is a good investment. Whether it’s a condo or cottage, there is a multitude of benefits to putting your money into a Blue Mountain rental property.
Investing in rental property can be overwhelming, no doubt. But as long as you have the right information, location, and property management team, you will flourish. With more than two million annual visitors, it’s safe to say that investing in a rental property around Blue Mountain is a smart choice.
Hiring a rental property management company is the greatest way to maximize profit when investing in rental property. Vacation property management companies ensure that the properties under their care operate smoothly, maintain their appearance, and either preserve or increase in value. Additionally, they will show properties to prospective tenants or buyers, explain complicated occupancy terms, collect monthly rent payments, and pay taxes and other maintenance fees, including the aforementioned unplanned costs.
For more information about how you can make the most out of your rental property investment, reach out to us. Our team is happy to answer your questions anytime.