Vacation Rental Cottages with a built-in solid rental income make owning here even easier. Properly comparing vacation rental cottages involves more than just looking at rental income. Knowing how to compare the many vacation rental variables can save you time and money.
Fortunately, most listing agents post a few years’ of rental income history in the associated documents section of the local MLS. These sheets are a wealth of information for the potential buyer. From these sheets you can tell how many tenants are repeat guests and which weeks the owner kept for personal and maintenance use. Repeat tenants take better care of properties and usually book early giving the owner a little more peace of mind. From this information you also might find that the owner blocks off weeks that would be easy to rent providing the new buyer with more rental income. Sometimes there are other collected fees listed on these sheets. Some Realtors have vacation rental analysis spreadsheets that can help you compare apples to apples. Scott Team Realty’s is in the link in the previous sentence.
Another key item to discover is the costs of the property management company. Property management fees can range from 10% to 25% depending on a myriad of variables including the income of the property and the company. Each company is different so once you narrow down your search to just a couple properties it is a good idea to discover their fees. The most common services the property management companies offer are: handle all the check-ins, advertise the property, collect the rent, pay the occupancy taxes, clean the cottage between tenants and handle all tenant issues. Other services are offered by each company and the costs associated with these services vary. Talking with the property manager of the firm of the cottage(s) you are considering can help tremendously with your decision. Your Realtor may also have some thoughts about the property management firm.
Comparing apples to apples between vacation rental cottages and vacation rental companies is not as easy as it looks. Here is some more information on purchasing a vacation rental home. Ask your Realtor to help you discover all the facts, figures and information about each property so you can make the best buying decision.