Tag: lake rentals

Part 2: Cons of Renting Out Your Lake Home

Posted on Glenn S. Phillips

There are many pros to renting out your lake home, as we previously discussed. However, it is best to know all of the details. There are also cons to renting out your home, and you should consider all aspects of the situation before you make a decision.

No Vacations Last Minute

You will have black out dates, which are expected when renting out your lake home. These dates are when you will be visiting the home and enjoying your time.

However, when you are renting out the lake home, you will not be able to make a split decision on a whim to relax at your second home due to occupants.

Play the Roll of a Landlord

rental homePlaying the roll of a landlord is a very time consuming roll. It is especially time consuming when you have ongoing maintenance to perform at the lake home. You are the one who will be responsible for the repairs.

Strangers Move into Your Home

You have to really understand the concept of renting out a home that you also live in part time. You will need to become comfortable with strangers living in your home. They will be using your facilities, your beds, entertainment system, and even possibly interacting with your lake neighbors.

Wear and Tear

Things break, it is inevitable. However, they will need repairs or have less life due to more use. The home will have more wear and tear on it than a typical home. There is no down time for the home and the appliances in the house. They may need to be replaced sooner than expected due to the usage levels.

Now that we have covered both sides of renting out a lake home, hopefully you are ready to make a well informed decision on what to do with yours!

Part 1: Pros of Renting Out Your Lake Home

Posted on Glenn S. Phillips

There is no better place to take your family during the summer months than to enjoy it at a lake house. You will have no problems renting out your lake home for winter either.

Along with renting out your lake home, you will be taking on a lot of different benefits. Here is a list of amazing pros of renting out your lake home.

Extra Income

Extra IncomeWhen renting out your home, you will make extra income you did not have before. This can help cover the house payment, as well as other bills. If you are making payments on the mortgage of this home, then renting out the house will make the mortgage payments. This will free up some of your income so that it is not financially hard for you. It will also help you with the maintenance fees.

On top of this, some people are happy knowing the home is not sitting vacant. It is being used and memories are being made.

Local Economy

If there is no one living in the homes in an area, the local shops and businesses receive less revenue and the local economy suffers. With keeping the homes occupied during “off” months, the local economy does not suffer.

Think of it as a way to help the local community while you are unable to be there!

Updated Features

You will need to upkeep the appearance of the home to ensure that you can continue to rent out the property. Therefore, you do not need to feel guilty about upgrading your second home. Think of it as a business. With making money, comes spending money.

Updating features include fresh paint, new faucets, and other aspects of having a home. It will need to remain fresh and clean. However, you can off set it with the price of the rental fees. Make sure that you do not over price your rental property though.

Ensure that you can match or come close to the surrounding rental properties. If you over price the property, then it will sit unoccupied. This is the opposite of what you are looking for. Be mindful to keep the price at the fair market value and people will be glad to rent from you.

4 Things to Consider Before Purchasing a Vacation Home

Posted on Glenn S. Phillips

There are things that you should know before you purchase a vacation home. Within this list you will learn what to look for, what is a great bonus to your investment, and what to stay away from. Buying a vacation home is a big responsibility, be sure to do your research before you buy.

1. Spend Time Before You Buy

Get to know the lake. Vacation in other nearby rentals and spend time on the water in the area. Find out if the area seems to be what you are looking for, be it a quiet retreat or a party cove. Different lakes have different personalities, and even different areas within the same lake can have a unique vibe to them.

2. Expect Normal Expenses

Just like purchasing a primary residence, lake homes also come with year-round expenses beyond the mortgage (if the home was financed). These costs include things like insurance, property taxes, and lawn maintenance in the off-season.

You should also factor into your budget the potential costs associated with replacing large appliances in the home like the water heater. You must also think about the monthly utility bills for the property like water, electric, gas, and others.

3. Find a Property Manager

Face it; although you love this home, it’s not your primary residence. It will, therefore, be unoccupied during certain times of the year. While you’re not there, consider hiring a property manager or a caretaker to maintain the residence.

You can work with any number of management companies that will assign your property to one of their managers, so you don’t have to handle the search alone. Another option is to hire a live-in caretaker to stay in the home during the times you’re not there. Like property managers, live-in caretakers are paid a salary to maintain the property in your absence.  

Which direction you choose is up to your personal preference; just know that it will need to be done.

4. Research the Demand

Lakes and lake rentals are a hot commodity for much of the year in many places but don’t expect to keep the house rented out year-round. While the lake is a great backdrop for a getaway any time of the year, demand for lake rentals is not nearly as high during cold months.

As a result, you will need to adjust prices accordingly. You may only be able to charge half (or less) of the summer rate if you want to keep year-round occupancy high.

Sometimes the excitement and anticipation for owning a second home on the lake can be a driving force in the purchasing decision. Make sure you stay rational and look at all of what is involved before you officially make your move!