Author: Alex Delaney
In this time of social distancing, vacation plans have been put on hold creating a devastating financial setback for short-term vacation rental owners. There is a lot of concern that the current pandemic situation will not resolve until a vaccine is available, which is currently projected to be a year to a year and a half away. The projected cyclical nature of this type of virus means we will likely experience another outbreak in the Fall. In addition, the economy continues to decline, limiting the resources needed for many families to afford a family vacation getaway even after the coast is clear.
Vacation rentals generate more cash inflow than long term rentals. But they also create more expenses with regular cleanings, on-going inspections, and intense management costs. And in the current climate, vacation rentals are not bringing in the expected income. So a temporary shift in strategy is perfect in this time of crisis.
One solution is to look at the feasibility of using your vacation home as a short term rental for essential employees. And while this may be an option if your property is located near a hospital or other essential business, there are a lot of complicated issues with short term rentals. As this option is not the subject of this blog, we suggest you check online resources to see if it would work for you.
This crisis is unlikely to resolve before the next year is up, and few properties fit the needs of essential employees, so turning your vacation home into a long term rental for the next year or two may actually be a better strategy to protect your income stream.
To turn your vacation home into a rental property:
- Assess its locale to determine if it is viable as a long term rental, although plenty of retired people are looking to leave the cities, so many remote spots will still work.
- Remove all furnishings and supplies generally used in vacation rentals. Store these items away to easily convert back into a vacation rental when things get back to normal.
- Look at the naked property and determine whether any repairs or renovations are needed to attract the type of renter likely to be interested in your property’s locale.
- Prepare the property for marketing.
- Make sure you are aware of Federal, State and Local laws and ordinances, especially Fair Housing Laws.
Sound daunting?
Help Is On The Way
Compass Property Management Group is uniquely positioned to help owners convert vacation rentals into long-term rentals.
We:
- know federal, state and local ordinances and laws and can help you avoid expensive mistakes;
- provide proven leases that stand up in court;
- work with experienced vendors who follow our sanitation and social distancing guidelines;
- respond to maintenance requests quickly and professionally;
- take the headache out of working with tenants;
- provide detailed financial reports each month so you stay in the know;
- provide weekly collections and vacancy reports so you always know what is going on;
- schedule inspections to verify there are no hidden problems that could evolve into huge expenses if left untreated, and ensure tenants are treating your property well;
- have a proven marketing strategy to get your property rented fast;
- provide careful screening of tenant prospects to lower your risk of eviction filings;
- have experienced attorneys at our fingertips for when things do go awry.
In short, we can help you turn your empty asset back into the income-producing stream that you worked so hard for. Contact us today at 404-445-7770, or check out our informative blog posts and find out how we can help you get back on your financial path.
Disclaimer: At Compass, we strive to provide the most up-to-date and accurate information. However, we cannot guarantee the accuracy of the information provided in such rapidly changing times. We strongly encourage you to follow the links, conduct your own research, and determine your own best actions. Compass does not purport to be experts or official advisors in any capacity regarding the COVID-19 pandemic. We review the information and consolidate it for our readership. Compass is not responsible for any out of date, or inaccurate information provided. We will make every effort to correct errors brought to our attention.