Want to own an international vacation property? Better question: who doesn’t?! The great thing about vacation properties is that they not only provide you a home base for traveling but that you can even rent them out and make money. See the options for owning a beautiful bungalow in Belize or a quaint cottage in Canada—and benefit in the process.
RealQuick: Types of Vacation Homes
“Timeshare” is usually the word that pops into people’s heads when thinking about vacation homes, but there are plenty of other options.
Cabins, beach houses, apartments, condos, and even hotel suites at resorts all are vacation homes. Virtually any type of property can be turned into a vacation home! And what’s more, these vacation home options are different than timeshares because you get to make the rules.
What to Do With Your Vacation Home
You can use your vacation home in three main ways: keep it just for yourself, rent it out yourself (such as through Airbnb or VRBO), or hire a third party to manage and rent it.
Keep It for Yourself
A lot of people get a vacation home (such as a cabin or lake house) and keep it as a standalone. They only use the property for their vacation purposes or perhaps allow family and friends to use it.
The Benefits:
- Have a place to escape to.
- Avoid paying for or finding accommodations while traveling.
- It’s a financial asset.
- The memories of spending repeated time in a vacation spot are priceless!
The Drawbacks:
By keeping it for yourself, the vacation property is only being used when you’re there. As is true with any property, it’s a significant investment. Some people also feel like they can’t travel elsewhere—they feel like they have to get their money’s worth. Not to mention, if you think owning one home is a lot of work, imagine owning two.
Rent It Out Yourself
Turning your vacation home into a vacation rental undoubtedly opens the door for additional revenue. With renting it out yourself, you are responsible for finding renters and managing the property.
The Benefits:
- All the benefits of owning a vacation home, plus…
- Generates income off of a rental property.
- Pays off the purchase over time.
The Drawbacks:
It’s a lot of work to rent out your place by yourself—many consider it a full-time job. It’s more convenient if you live near your vacation rental property, but nearly impossible if you don’t. You’ll have to do a solid job marketing it to ensure you’re getting your money’s worth.
It should be added that if you don’t feel comfortable with others staying in your vacation home, this is not the option for you and that’s OK. Adding tons of stress for money won’t be worth it.
Rent It Through a Management Company
Hiring a third party to manage and rent out your vacation rental eliminates a lot of hassle. With this option, a property management company takes over renting processes and also provides cleaning.
The Benefits:
- All the benefits of owning and renting out a vacation home, plus…
- Saves tons of time on cleaning and renting it out.
- Makes it possible to own an investment property without having to live nearby.
The Drawbacks:
You’ll pay a fee for these services—it depends on location but some averages estimate 8-12% of the monthly value. Many who use management companies find it harder to use their vacation home themselves—at that point, they’re paying a fee and want the difference to be covered with extra renters.
Everyone has an option that works for them when it comes to owning a vacation property. But before you plan on laying poolside or start dreaming about what that added income will do for your finances, you need a vacation home! Look through RealtyHive to find your perfect property abroad.